Lawmakers in Maine are considering the idea of implementing a regulatory framework for Daily Fantasy Sports (DFS) industry in the state. DFS games have quite a fan following in Maine and all major DFS companies have operations in the state.
According to local media reports, several representatives from the leading DFS companies met with state lawmakers at a recent conference in Chicago to discuss the future of the DFS industry in Maine.
Sen. Roger Katz has presented a bill for review which will be discussed in the next legislative session.
Legislators will carry out a thorough examination of all issues surrounding DFS games and then make a decision on the possibility of regulating the industry. Sen Katz will need to submit a detailed proposal only after the session begins. Katz said that the game attracts over 57 million players nationally and it deserves a closer look given its popularity.
In a statement, Sen. Roger Katz said,
Should there be some regulation of these leagues to make sure that consumers are being protected when these leagues come into a state?Secondly, is this a possible revenue source as well?
According to a recent study, close to $2.6 billion was generated as entry fees at the national level last year and this revenue is likely to grow to over $14 billion in 2020.
State Rep. Matt Pouilot who was also present at the meeting with the DFS companies said that Maine consumers deserved protection and make reference to the DraftKings scandal which involved insider trading by an employee who used confidential information to bet on a FanDuel contest.
While several states have passed special legislation to regulate the DFS industry, others have used existing laws such as the Unfair Trade Practices Act to ban DFS operators.
Maine Attorney General Janet Mills has said that the state’s law concerning DFS games is not very clear and there is still concerns as to whether DFS games are games of chance or skill. Mills said that while the game was a fun activity for many,there was also concern that it could well result in someone putting their family savings at risk.
Mills has said that the laws must have restrictions with respect to who can play and the amount of betting that can be allowed. Additionally DFS operators must be required to clearly display disclaimers that reveal the odds of winning. Katz observed that with the right safeguards revenue from the DFS industry could result in additional income for the state.
