DFS industry forms self-regulatory control agency
Fantasy Sports Control Agency tasked with establishing a self-regulatory framework
The Fantasy Sports Trade Association (FSTA) has formed an independent body charged with creating a âstrict and transparentâ self-regulatory framework for the industry. [private]
The Fantasy Sports Control Agency (FSCA)Â will be led by former acting US secretary of labor Seth Harris, and comes just weeks after the DraftKings data leak scandal erupted.
The control agency will develop a framework consisting of four key principles: standards; company controls, processes, and leadership; auditing policies and procedures; and enforcement.
The principles will require daily fantasy sports (DFS) operators to establish a system of controls and process to ensure compliance, and to appoint a senior leader to oversee compliance efforts.
Harris and representatives of the FSTA board have already met with professional sports leagues and industry stakeholders in support of the control agency.
The FSTA also said it would retain a major accounting firm to audit the initiative.
âThe issues and opportunities facing the fantasy sports industry can be best addressed through an independent agency supported by the industry and its members,â Harris said.
âThe FSTA will continue to work closely with state and federal lawmakers and regulators as we develop and implement strong integrity programs.
âIn the process, we can save lawmakers and regulators the cost and effort of intervening so that they can expend their limited resources on bigger and more societally important challenges,â he added.
FSTA chairman Paul Charchian said the association would give Harris the âautonomy and controlâ to evaluate the industry and create an âeffective and transparentâ regulatory framework.
âSecretary Harris is an independent expert of unimpeachable credibility who has dedicated his career to ensuring fairness and a level playing field,â he added.
The news comes as Illinois joins a roster of states seeking to legalize and regulate daily fantasy sports after Rep. Mike Zalewski introduced legislation yesterday.
If passed into law, HB 4323 would create the Fantasy Contests Act and establish requirements for policies and procedures operators must adhere to in the state.