Pennsylvania looks to regulate, not ban, daily fantasy sports leagues

"We're holding hearings to determine what, if anything, needs to be done," state Rep. Jamie Santora told the Daily News.

The House of Representatives' Gaming Oversight Committee will meet on Dec. 3 to discuss the next step.

"Yes, there is skill involved, but is there also luck?" said Santora, a member of the oversight committee who represents Delaware County. "What if a player gets hurt? What if he has the game of his life?"

A bill recently was introduced in the Pennsylvania Legislature that would require daily leagues to align with state casinos and thus be regulated by the casino commission, for which Pennsylvania would collect a tax. Just imagine FanDuel giving out one of those giant checks made payable to Mr. Tom Wolf.

The latest missile fired at daily fantasy sports leagues came this week from New York's attorney general, which ordered FanDuel and DraftKings to cease taking wagers in the state.

The office of Eric Schneiderman concluded after a one-month investigation that daily fantasy sports leagues are games of chance, and not skill, as the exemption within the 2006 Unlawful Internet Gambling Enforcement Act has provided.

FanDuel and DraftKings disagreed with the order and said they intend to fight it in court. Smaller sites shut their New York operations immediately. Regardless of how this plays out, the lawyers will clean up like Tom Brady playing against a JV defense.

Daily leagues also are being scrutinized for hints of insider trading. In September, an employee of DraftKings won $350,000 while playing on FanDuel. Each company denied anything illegal was done, though both now prohibit employees from playing in daily leagues.

Like New York, Nevada last month also ordered a halt to daily leagues. Other states are trying to figure things out. The sentiment in Pennsylvania, New Jersey and others appears to lean toward regulation rather than banishment.

"We're in an evaluation process; we're not looking to cut anything off," said Santora, who plays in a traditional fantasy football league with friends, but not in daily leagues. "Our goal is to make sure the amateur (player) is protected. We've got to protect amateur users."