A DFS bill has progressed through the state legislature in California. If it passes, sites such as DraftKings and FanDuel will be able to operate legally within the state. However, they would have to adjust their businesses.
In order to conduct their businesses in California, the DFS sites must receive approval from the state. They will have to receive a license and also pay an annual fee. The amount of the annual fee is still unknown.
Last Friday, the Bill 1437 was voted on the State Assembly’s Committee on Appropriations and received a 15-0 unanimous vote. The same bill was also approved by the Government Organization Committee three weeks ago.
The AB 1437 concerns only the legalization of internet fantasy sports. It doesn’t include online poker. Bills concerning online poker legalization have been stymied repeatedly over the year in the state of California.
Even though proponents of online poker, such as Poker Players Alliance and PokerStars Team Pros have being trying to persuade California lawmakers of the many advantages online poker has on the economy of the state, lawmakers are still not convinced.
Up until now, DFS sites are legal in California and also many other states in the US.
Many politicians of different states throughout the US have been discussing if Daily Fantasy Sports is a game of luck or a game of skills. States such as Nevada and New York have come to the conclusion that DFS are games of luck, not skill-based, and therefore are illegal in their states.
In the state of Nevada, only online poker is legal according to the state’s Gaming Commission, so DFS sites are not allowed to operate in the Silver State.
Also in the state of New York, Eric Schneiderman, the state’s Attorney General has banned DSF. According to the AG, Daily Fantasy Sports is seen as a form of gambling in the state of New York.
The bill AB 1437 was created by Adam Gray, California Assembly man, who also created an online poker bill (AB 431). Whereas the DFS bill progresses in a relatively short period, the poker bill hasn’t made any solid movement.
The fast progress doesn’t mean the bill AB 1437 will pass. For instance, the Attorney General of California, Kala Harris, hasn’t given her opinion on this matter yet. To date, it seems the Attorney General have avoided doing so. Her opinion could definitely impact the outcome.
In New York as well as Nevada, a similar result occurred. The opinion of the Attorney General in Nevada led to a cease-and-desist order from the Nevada Gaming Commission on all Daily Fantasy Sports sites active in Nevada.