Persistent State Sen. Tyson Larson authors LB469
With the encouragement of major daily fantasy sports operators like FanDuel and DraftKings, Nebraska state Senator Tyson Larson is again making an attempt to legalise daily fantasy sports in the state with his LB469 proposal, which advanced out of the General Affairs Committee this week and is to be debated by the full Legislature.
Larson characterises the bill as a consumer protection measure, but has encountered some opposition from traditional season-long fantasy sports supporters who are concerned that it will prove disruptive and disadvantageous for season-long fans, and dangerous for smaller fantasy sports firms.
Larson wants to ensure that Nebraska defines DFS as a skill game and not gambling, but that it should be regulated, registered and taxed.
Among other things, his proposal requires companies to establish escrow accounts to set aside the portion of entry fees paid out as prizes, along with language that says winning outcomes must reflect the "relative knowledge and skill of the fantasy contest player" and other clauses intended to safeguard the integrity and fairness of the contests.
All fantasy sports companies would be required to pay annual registration fees of $10,000 to the State Department of Revenue to cover enforcement costs.
To placate small companies who have protested at the size of this fee, the GA committee added an amendment to Larson's proposal placing fees on a sliding scale depending on the level of business achieved by the operator, which could see less successful firms paying only $1,000.
Last year, more than 57 million played fantasy contests in North America, according to the Fantasy Sports Trade Association.
AlthoughLB469 has thus far made progress at committee stage, it remains at risk; InfoPowa readers may recall that a similar bill last year failed after opponents mounted a determined filibuster based on opposition to expanded gambling, and the measure ran out of time.
Online Casino News Courtesy of Infopowa
