By Katherine Mannion, Staff Writer
While the future of Pennsylvania sports betting is currently unclear, there is no doubt that there are changes to come that may clarify the definitions and breadth of fantasy sports regulation. When these changes occur are up in the air, but proponents of the practice hope they occur before the end of the current legislative term.
With the emergence of websites such as DraftKings and FanDuel, Daily Fantasy Sports (DFS) betting has become a popular medium for both casual and serious gamblers across the country. In short, these sites function by allowing fans of many popular sports to compete in single-day contests for money.[1] Players can start small, playing single-game bets or opting to enter leagues that run the course of the season.[2]
Though this industry has continued to grow across the country, there are some states which have held out on explicitly legalizing it. It is only explicitly legal to use DFS sites in 12 states, including Indiana, Maryland, Massachusetts, and, most recently, New York.[3] Five states have banned DFS: Arizona, Iowa, Louisiana, Montana, and Washington.[4] Pennsylvania uses a common principle in the remaining states known as the “predominant purpose” test.[5] This test weighs the levels of skill and chance against one another, and there must be more skill than chance involved.[6] Where this schema fits in regard to daily fantasy sports betting is unclear. This could be clarified, however, before the end of Pennsylvania’s legislative calendar.[7]
Pennsylvania’s position on online fantasy gambling is still in flux, with two bills sitting in the Senate waiting to be heard. Pennsylvania’s largescale gambling expansion, H.B. 2150, includes some fantasy sports regulation.[8] It was last amended June 22, 2016, but it passed the House and is awaiting a vote by the Senate.[9] This is not likely to be voted on before the end of the current legislative session, but it could see movement when the next session begins.
On Oct. 17, PA Senate Bill 1324, which provides for fantasy contests, was moved out of Committee and onto the Senate floor.[10] This bill deals exclusively with fantasy sports, setting a concrete definition for what constitutes a fantasy contest.[11] Under this law, the winning outcome cannot be based on the score, point spread, or performance of a single team or the performance of an individual athlete.[12] The results must come from the statistical accumulation of points stemming from the performance of a conglomerate of athletes.[13] This definition — combined with the restrictions on where people can participate in fantasy sports (online and in some casinos) — sets apart fantasy sports betting from traditional gambling in regard to regulation and taxation.
PA Senate Bill 1324 was expected to be voted on before the November elections, but thus far, it has seen no movement and may not be voted on until 2017.[14] Although all DFS betting legislation was expected to pass, the Senate opting not to vote on this bill before the election or the end of the session in November opens the door for opponents entering office to block it.[15]
Rep. Rosita Youngblood voiced concerns regarding the two new people in charge of the committee overseeing gaming policy, as well as a new attorney general, citing possible changing stances.[16] Failing to pass H.B. 2150 before the end of the session would leave Pennsylvania taxpayers accountable for $100 million in income that was supposed to come from gaming in the state.[17] Youngblood stated that leaving daily fantasy sports unregulated could create more risk than leaving it untouched, citing a gray space that could allow for some to take advantage of the unclarified system.[18]
Sources
[1] http://money.cnn.com/2015/10/06/news/companies/fantasy-sports-101/
[2] http://about.draftkings.com/; https://www.fanduel.com/about
[3] http://www.espn.com/chalk/story/_/id/14799449/daily-fantasy-dfs-legalization-tracker-all-50-states ; http://www.legalsportsreport.com/dfs-state-watch/
[4] Id.
[5] https://uclawreview.org/2014/11/27/fantasy-football-better-to-be-good-than-lucky/
[6] Id.
[7] http://www.legalsportsreport.com/11830/pa-dfs-regulation/
[8] http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2015&sind=0&body=H&type=B&bn=2150
[9] Id.
[10] http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=HTM&sessYr=2015&sessInd=0&billBody=S&billTyp=B&billNbr=1324&pn=2001
[11] Id.
[12] Id.
[13] Id.
[14] http://www.pasen.gov/session.cfm
[15] http://www.onlinepokerreport.com/22309/exclusive-interview-pa-rep-rosita-youngblood/
[16] Id.
[17] Id.
[18] Id.
