Controversial discussion has arisen regarding the nature of Daily Fantasy Sports. Is it gambling or skill-based gaming? What is your amended bill all about and what will be the role of DFS within it?
My bill draws the conclusion that DFS is a game of skill, however it is still to be considered gaming in Pennsylvania. As such and since PA is a gaming (casino) state it will need to fall under the auspice of our gaming control board for regulatory oversight. My bill essentially bans DFS unless it is run through our casinos under the eye of the gaming control board. This is not to say that Draftkings and Fanduel cannot operate here only that they would need to partner with our casinos. A player would not have to physically enter our casinos this would be web based. For the end user nothing will change, they would still be playing on draftkings and fanduel but they would enter their websites via a portal on our casinos websites. I am hopeful that the established DFS providers will see that partnering with our casinos will provide them with long term stability in our market. And would alleviate concerns about the industry being shutdown by the federal government.
At the 2015 G2E many companies expressed their interest in expanding into Daily Fantasy Sports. How do you see this billion-dollar industry evolving over the next years in the US?
Left unregulated I fear the industry may face many challenges. I believe the model I am trying to establish is one other states could utilize to ensure the future of DFS.
Land-based casino operators have spoken out against Daily Fantasy Sports, stating “DFS is dwarfing the traditional gambling industry”. What are your thoughts on this?
I have not had any discussions with our land based casinos on my amendment, I have provided it to them for comments. I also have shared it with the DFS industry. I have not heard of resistance from the casinos to partner with DFS.
Are these investigative measures taken by officials across the US an attempt to protect and save the land-based casino industry, which is suffering from declines in revenue?
As I said earlier regulation is necessary to ensure underage compliance, problem gambling as well as transparency and accountability issues. Make no mistake that DFS has been a financial boom for many, including sports teams. However, questions still remain with recent news of potential improprieties. I can’t say what is motivating US officials (casinos or moral issues). Nor do I know how powerful the casino industry is at the federal level as opposed to the professional sports teams which seem to be embracing DFS.
Why is the pace and growth of online gaming slower in America than in Europe, for instance?
I don’t have a good answer for this, it is something that has always perplexed me. I know that the far right has always made it difficult for further expansion of gaming in the US.
In your opinion, what is going to happen to DraftKings and FanDuel?
Interesting question. That is totally up to them. I believe they have several options. One along the line of what I am suggesting. Or they can continue along the path they are now and hope they don’t see the same fate as internet poker. Or they could try and build on their strengthening relationship with our traditional sports franchises and use their power to continue operating. I do believe they need to do something though. I fear a federal government inquiry. I have concerns about lack of transparency.