A first-of-its-kind bill to regulate both daily and season-long fantasy sports contests "has been signed into law in Virginia," according to Kimberly Pierceall of the Norfolk VIRGINIAN-PILOT. Virginia Gov. Terry McAuliffe signed SB646 yesterday before the midnight deadline "without requesting amendments sought by seasonlong fantasy sports operators and anti-gambling advocates." The bill "requires fantasy sports sites to pay $50,000 initially, ensure players' money is kept separate from operating funds, and turn over annual audits for the state's Department of Agriculture and Consumer Services to review." Whether the sites constitute gambling "has been an ongoing debate," with DFS operators pointing to an '06 federal law that "exempted fantasy sports from being considered illegal online gambling." The DFS industry "lobbied for state regulations and has been doing so" in several other states. Virginia is the "first to pass the legislation." The Virginia law does not mention the word "daily" (Norfolk VIRGINIAN-PILOT, 3/8). The RICHMOND TIMES-DISPATCH reports some consumer protections "would be put in place, such as limiting play to those 18 or older, prohibiting employees of the sites from competing for cash prizes and allowing players to request self-imposed bans" (RICHMOND TIMES-DISPATCH, 3/8). CNET's Steven Musil wrote the new law is a "home run for sites like DraftKings and FanDuel, which are fighting for their survival as many states have found the industry to be in the violation of state gambling laws" (CNET.com, 3/7).
SPREADING NORTH: In Newark, Brent Johnson notes New Jersey State Sen. Jim Whelan yesterday "formally introduced legislation to regulate and tax" DFS in the state. Whelan "announced last fall that he was planning to draft a bill to regulate the billion-dollar industry industry which has become the subject of increasing scrutiny in recent months." The measure Whelan unveiled yesterday "would have the state Department of Law and Public Safety oversee the games in New Jersey, issuing permits to casino operators and other business ventures that want to conduct" DFS in the state. It would also impose a 9.25% tax rate "on the gross revenue made" by DFS companies -- the same rate Atlantic City casinos would pay on their revenue. New Jersey "joins about 30 states that have introduced bills to regulate the industry" (Newark STAR-LEDGER, 3/8).
KILLING INNOVATION?: In Las Vegas, Richard Velotta reports execs of DraftKings and FanDuel yesterday told Nevada's 12-member Gaming Policy Committee that regulation "could kill the innovation the technology" of DFS "brings to its millions of players." The committee, comprised of gaming industry leaders, state legislators and former and present industry regulators, "made it clear that the state wants fantasy sports to be a part of Nevada's wagering offerings, but members also said they view it was gambling that must be regulated to protect consumers." About 100 people "gathered at Las Vegas City Hall to hear testimony and discussion about the issue" (LAS VEGAS REVIEW-JOURNAL, 3/8).
