DFS âcryingâ for regulation, says New Jersey lawmaker
Congressman Frank Pallone renews calls for federal investigation into daily fantasy sports
New Jersey lawmakers Congressman Frank Pallone and Senator Robert Menendez have renewed calls for a federal investigation into the legal status of the daily fantasy sports industry. [private]
At a press conference yesterday, Pallone (pictured) said daily fantasy sports was an industry âcrying for consumer protectionâ and called on Congress to do more to ensure âfairness and a level playing fieldâ.
The pair also called out the major sports leagues, and said they were âhypocriticalâ for opposing sports betting but backing and in some cases investing in daily fantasy sports.
âThe same professional sports leagues and teams that support and invest in fantasy sports betting are opposed to and serve as a barrier to professional sports wagering,â Pallone said.
âThe illegality of sports betting has forced it to function almost exclusively through organized crime, and the lack of regulation of daily fantasy sports has left the industry open to unfair practices and consumer vulnerabilities.
âBoth need to be taken out of the shadows and should be legal and regulated,â he added.
The call for regulation comes after last weekâs insider trading scandal which saw DraftKings and FanDuel both implement policies banning their employees from playing real-money contests on competitor sites.
The scandal erupted after a DraftKings employee published lineup data ahead of the start of a contest, and then went on to win $350,000 on FanDuel later in the week.
âThis is about fairness and ensuring a level playing field for fantasy sports fans,â Senator Menendez said.
âThereâs a lot of money at stake, and these sites are drawing in tons of players. These players should know they arenât being duped,â he added.
Following the scandal, New York attorney general Eric Schneiderman launched an investigation into the legal status of FanDuel and DraftKings while a disgruntled player from Kentucky filed a class action lawsuit against both operators.