With states across the country turning attention toward possible regulation of daily fantasy sports, Pennsylvania state representative George Dunbar has provided new details this week about his forthcoming bill.
Dunbar told ABC27 in Harrisburg, Pa., that the revised bill would require daily fantasy operators to partner with an existing casino in the state. It would include a $5 million licensing fee for participating casinos and a $1 million fee for DFS sites, as well as a 14-percent tax on sites’ earnings.
As originally introduced in May, the bill would’ve restricted daily fantasy to on-site play at casinos. Dunbar told MSNBC on Monday that won’t be the case for the revised bill, which is still being amended.
ABC27 reported that a hearing on the legislation may be held as early as next week; the current schedule of the Gaming Oversight committee in the state shows two meetings scheduled for next week, but fantasy sports are not listed on either agenda. A public hearing on “Fantasy Sports & Sports Betting” is scheduled for Nov. 10.
Daily fantasy insiders expressed concern on Tuesday over the proposed fees and tax rate, which many believe will be cost-prohibitive for the industry’s smaller operators.
If the licensing fees are onerous and the tax structure is unfavorable, you might sooner see sites exit PA than enter
— Seth Young (@sethyoung) October 20, 2015
IMO proposed PA #DFS law (https://t.co/nzyJwUTmLz) may create significant barriers to entry & possibly stifle innovation/competition
— Justin Fielkow (@JFielkow) October 20, 2015
PA lawmakers need to hear more than FD/DK view b/c steep casino & DFS operator fee bars competitors https://t.co/PwJD7k4loo — Joe Brennan Jr (@joebrennanjr) October 20, 2015
During his segment on MSNBC, Dunbar expressed fear that the ongoing investigation into daily fantasy sports by the FBI and Department of Justice could lead to a repeat of online poker’s Black Friday.
“My fear … Internet poker was all the rage, but on April 15, 2011, the DOJ shut it down completely, left all the players out there in a lurch, a lot of their money tied up as well,” Dunbar said. “I have fears that that could happen to DFS as well. That’s one thing I think my legislation is providing is some protection to those players who are playing DFS. I want them to continue to play.”
Dunbar said his legislation would allow Pennsylvania users to continue to patronize daily fantasy sites through a portal on a state casino’s website.
“The end user wouldn’t see much of a difference,” he said.