Daily fantasy football is the most popular form of DFS, so passing Dillingham’s bill before NFL season would maximize revenues.
The Maine Legislature approved a daily fantasy sports gaming bill earlier this year, but the measure could be in trouble now. While both houses have passed the daily fantasy sports measures, Governor Paul LePage might veto the bill.
The bill’s supporters gained approval from Maine lawmakers without much fanfare, though the DFS bill had a few vocal critics. Gov. LePage is a wild card in any negotiation, though.
Maine State Representative Kathleen Dillingham submitted a bill to the Maine House of Representatives. The representative said she wanted consumer protections, age verification policies, and other regulations to protect the 215,000 residents who play in such contests each year.
Rep. Dillingham, a Republican from Oxford, said before the floor vote, “I would ask that you support the motion, move forward, and make sure that we are able to have regulations in place for this industry and that we ensure there are consumer protections for the 215,000 participants in the state of Maine.”
What Is Daily Fantasy Football?
Fantasy sports is a game based on the idea each competitor is like a general manager or team owner in sports. The fantasy GM builds a starting team with individual players from pro and college sports. Using a scoring system which translates players statistics to fantasy points, fantasy owners compete against one another. Whoever fields the best starting lineup wins.
Traditional fantasy leagues are based on a year-long or season-long contest between league owners. Daily fantasy sports is an online form of the game in which one-day fantasy contests are held. Team owners pay an entry fee, field a one-day lineup, and get paid winnings if they beat the competition. Websites like FanDuel and DraftKings organize such games and take a 10% fee on all entries, but DFS is a player-versus-player game.
DFS: Harmless Hobby or Dangerous Habit?
Proponents of legalized daily fantasy sports say such games are a harmless hobby. 50 million Americans play fantasy sports each year. The most popular contest is daily fantasy football, and those who play fantasy football are hardcore fans who know their hobby.
In Kathleen Dillingham’s bill, the Maine Gambling Control Board would regulate daily fantasy sports. The bill passed both houses of the state legislature, but Gov. Paul LePage could veto the bill. LePage has not said what he intends to do with the DFS bill, though he is a vocal opponent of land-based gambling expansion.
William Tuell on DFS
Dillingham’s Republican colleague from East Machias, Rep. William Tuell, agreed with the Dillingham’s motion. Tuell agreed that DFS gaming is a harmless form of entertainment. He characterized the Maine voters who engage in such contests as conventional sports fans.
Tuell said, “Some do it for entertainment, everybody does it — a lot do it — are sports fans. And I think this bill is the best way forward for daily fantasy sport.”
Ken Ackley Opposes DFS Bill
State Representative Ken Ackley, an Independent from Monmouth, is opposed to Kathleen Dillingham’s daily fantasy sports bill. Rep. Ackley told Maine Public Broadcasting, “I don’t think the state of Maine should be in the business of feeding what could be an addiction.”
Ken Ackley said the bill favors the companies running daily fantasy sports businesses, but would not help Maine’s Treasury Department that much. Ackley joined a chorus of lawmakers and lobbyists saying the cost of regulation would offset most of the tax revenues in the first year of enforcement.
Craig Hickman Is against DFS “Profiteers”
State Rep. Craig Hickman, a Democrat from Winthrop, echoed those sentiments. Hickman said the current bill is aimed to help the “profiteers” in the business — not the Maine public. Saying the bill would generate only $10,000 in the first year of regulations, Hickman added, “This bill has more holes in it than cheesecloth. This bill is written by an industry to protect an industry in the state of Maine. We are not going to get very much out of it.”
The startup costs of imposing regulations can be imposing, which is why the question should be how much regulation of the fantasy sports industry would generate in the second year of enforcement. Kathleen Dillingham pointed out that daily fantasy sports is a billion-dollar industry. She said that DFS had $2.5 billion in turnover in 2015. She added that the number is expected to rise to $14 billion by the year 2020.
Paul LePage’s Potential Veto
Despite the vocal opposition, the daily fantasy sports bill passed by wide margins in both houses of the Maine legislature. The last remaining obstacle is Governor Paul LePage. While the governor has not said he is against the bill, he has opposed gaming expansion before. If lawmakers can convince him this latest measure is a game of chance (gambling) and not a game of skill (gaming), then he might veto the bill.
If so, Kathleen Dillingham would need to secure enough votes to override the veto. The original bill did not have those votes, so it is uncertain whether Dillingham and allies could overcome LePage’s challenge. Paul LePage is a Republican, though, so the fact that Republicans tend to support the bill and those opposing the proposed law are Democrats/Independents might have an effect.
