Regulating DFS; So long, Harrah’s Tunica

Although he doesn’t think state government ought to “impede one’s enjoyment of fantasy sports,” New Jersey state Sen. James Whelan (D, right) thinks it’s time for the Garden State to regulate daily fantasy sports. In a letter to the Division of Gaming Enforcement, Whelan wrote, ” we have an obligation to ensure that fantasy sports competition is fair, impartial, and transparent to everyone.” He’ll face some stiff opposition from Gov. Chris Christie (R), who has pooh-poohed the need for oversight of the pastime.

Under Whelan’s bill, DFS operators would have to clear New Jersey’s strict gaming-license application process. In return, they’d be certified as offering a game of skill. Casinos would also be allowed to participate in the DFS action. The NCAA won’t like Whelan’s proposed inclusion of college sports. “NCAA members have defined sports wagering as putting something at risk — such as an entry fee — with the opportunity to win something in return, which includes fantasy league games,” it said in response to Whelan’s bill.

In a Huffington Post editorial, sports executive Bill Squadron argues that the time has come for federal legalization of sports betting. The latter, he contends, is an “unregulated, untaxed and subterranean economy [that] has inextricable ties to the high-profile, nascent world of daily fantasy.” He argues that 2006’s Unlawful Internet Gambling Enforcement Act is obsolete, never have foreseen “a high-octane, venture capital fueled sweepstakes business promising jackpot-like payouts on a daily basis.”

And when the likes of FanDuel and DraftKings began wagging their big, swinging dicks in government’s face “through a torrent of ubiquitous advertising — it was only a matter of time before government officials would react to such provocation.” DFS, Squadron allows, “is no less gambling than where experienced blackjack players improve their chances by making the right choices to maximize their odds.” He suggests that we look to the English model, where sports betting flourishes in the open and a “substantial industry” unto itself. Banning sports betting in the U.S. has failed he argues and the states are up to their ears in gambling, especially state-run lotteries.

Squadron argues for a one-size-fits-all federal solution. That’ll be a neat trick, as the states are getting well out in front both in legislation and regulation. Squadron’s argument is compelling but will be a tough sell on Capitol Hill.

* “I can grant you the relief. But the notion that I approve of it in the sense that I think that this is great has always troubled me.” So Judge Benjamin Goldgar told Caesars Entertainment as he gaveled the $3 million sale of Harrah’s Tunica to TJM
Properties. If the latter’s name has a familiar ring, it’s the company that relieved Caesars of the Atlantic Club. Going over TJM is the non-gaming component of the Tunica casino (the gaming barges having been scrapped), including the buffet crafted by sugar-pusher Paula Deen, a favorite of Gary Loveman‘s. But G-Lo is gone and Caesars has legal bills to pay, so this is no time for sentiment.

Arkansas citizens remain narrowly opposed to tribal gambling, 49% to 51% and Gov. Asa Hutchinson‘s opposition remains steadfast. The Quapaw Tribe has land in Little Rock it could use for a casino but says it will dedicate the acreage to renewable energy. But with gaming revenue crossing the border into Oklahoma and Mississippi, how much longer will Arkansas hold out?