SACRAMENTO – Assemblymember Adam C. Gray (D-Merced), Chair of the Assembly Governmental Organization Committee, announced that the Committee will hold an informational hearing in the coming months on the issue of Daily Fantasy Sports wagering. The purpose of this hearing will be to inform the legislature and the public on the inner workings of this unregulated and lucrative industry.
“Recent events reported by the New York Times have highlighted the need to provide consumer protection to consumers who wager on Daily Fantasy Sports websites, i.e. Fan Dual, Draft Kings and Yahoo,” says Assemblymember Gray. “Daily Fantasy Sports betting is happening in California, whether we like it or not. This is an unregulated industry, whose revenue is in the billions of dollars. All other gaming activities in the State are subject to regulations that ensure a safe environment for gambling.”
Assemblymember Gray introduced AB 1437, the Internet Fantasy Sports Games Consumer Protection Act, in September. The bill ensures Californians who participate in Daily Fantasy Sports wagering are given a measure of consumer protection.
“We are establishing a first in the nation framework to regulate Daily Fantasy Sports wagering so that California consumers can be assured that they are gaming in a safe and fair environment. It is not my intent to stifle or ban this growing industry as other states have done, but I believe California has a responsibility to protect its consumers. We need to crack down on unregulated online gaming and replace it with a safe and responsible entertainment option for adults, which includes safeguards against compulsive and underage gambling, money laundering, fraud, and identity theft,” says Assemblymember Gray.
Despite legal restrictions at the Federal and state level, wagering on sporting events and/or individual players performances is widespread. Both enterprises—Daily Fantasy and traditional sports wagering—are thriving and operating free from regulation or oversight in California. There is no solid data on the volume of illegal sports betting activity in the United States, but estimates have been as high as $400 billion annually.
“We need to crack down on illegal and unregulated online gaming and replace it with a safe and responsible entertainment option for adults, which includes safeguards against compulsive and underage gambling, money laundering, fraud, and identity theft,” says Assemblymember Gray. “We can only do so by bringing this industry out of the shadows and mandating enforceable consumer protection.”
Assemblymember Adam C. Gray represents the 21st Assembly District which includes all of Merced County and portions of Stanislaus County.
CONTACT: Eric Johnson, (916) 319-2531; Mike Lynch, (916) 319-2021