Daily fantasy sports operators could face first major legal challenge

Daily fantasy sports operators (DFS) could be set to face their first major legal challenge in the US after a ranking member of an influential House of Representatives committee requested a hearing about the relationship between fantasy sports and gambling.

According to various reports, Republican Frank Pallone of the Committee on Energy and Commerce wants to scrutinise the difference between gambling on sports and playing fantasy games, as well as looking at the close ties between professional sports and the fantasy industry.

In a statement, Pallone said that despite services such as DraftKings and FanDuel becoming increasingly popular in the US, the legal landscape that governs such activities remains “murky” and should be reviewed.

“Anyone who watched a game this weekend was inundated by commercials for fantasy sports sites, and it’s only the first week of the NFL (American football) season,” Pallone said.

“These sites are enormously popular, arguably central to the fans’ experience, and professional leagues are seeing enormous profits as a result.

“Despite how mainstream these sites have become, though, the legal landscape governing these activities remains murky and should be reviewed.

“Fans are currently allowed to risk money on the performance of an individual player.

“How is that different than wagering money on the outcome of a game?”

Pallone’s call for a review comes after Google Play recently approved DraftKings and FanDuel applications for download and use in the US.

Google Play previously did not allow the DFS apps onto its app store, with users having to ‘sideload’ the apps by turning off their security setting and installing a separate file.

However, fully-functioning versions of both apps have now been made available to download from the Google Play store, despite the firm remaining committed to its ban on gambling offerings.

source : www.igamingbusiness.com

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