State Senator Wants N.J. to Regulate Daily Fantasy

Citing a New York Times article about daily fantasy site employees winning money on the sites of competitors, N.J. State Sen. Jim Whelan today announced his intention to introduce legislation that would regulate daily fantasy sports.

Whelan sent a letter to Division of Gaming Enforcement Director Dave Rebuck and Casino Control Commission Chairman Matt Levinson about his proposed legislation, which would put regulation of daily fantasy sports in New Jersey in the hands of the DGE.

“I don’t believe we should impede one’s enjoyment of fantasy sports,” Whelan, the former mayor of Atlantic City, wrote in the letter. “Casinos can use fantasy sports, especially during football season, to bring people to Atlantic City to play in these competitions. However, we have an obligation to ensure that fantasy sports competition is fair, impartial and transparent to everyone.”

The Times article Whelan referenced, which helped fuel the perception of untrustworthy daily fantasy sites, regarded a midlevel employee at DraftKings who won $350,000 the same week he accidentally released ownership data before the start of the week’s games. An investigation cleared Ethan Haskell — he didn’t use that data to win six figures — but the unregulated nature of the contests continue to cause concern … and give politicians an opening to take action.

Nevada, the only state that offers bookie-style point-spread wagering on single athletic contests, has banned daily fantasy sports as unlicensed gambling.

Other states essentially want to bring daily fantasy into their current framework of legal gambling. A bill introduced by a Western Pennsylvania representative would require sites like DraftKings and FanDuel to partner with established casino operators. “You’re not going to get that large and that big without government trying to get involved in the process as well and making sure everyone is taken care of,” Rep. George Dunbar said.

Whelan’s bill would vet and license daily fantasy companies before allowing them to do business in the state. “The Division has done a great job of regulating internet gaming companies and ensuring there are safeguards in place,” Whelan said in a statement. “We want to make sure that those same safeguard are in place with daily fantasy sports.”

Read his letter and the bill below.