The Fantasy Sports Consumer Protection Act (HB 2150) was filed by Pennsylvania State Rep. George Dunbar on Thursday and a vote on the measure has been scheduled by the House Gaming Oversight Committee for June 15.
The bill is an amended version of H 1197, which Rep. Dunbar, a member of the Pennsylvania House Gaming Oversight Committee, introduced in May 2015 but failed to see any action. The filing comes on the heels of the committee receiving a report on the DFS industry by the Pennsylvania Gaming Control Board (PGCB) that the legislature requested earlier this year to look at DFS as a gambling product. Under the bill, licensed casino operators in the state would be able to apply to add DFS to their gaming options.
However, the bill differs from what last month’s report from the PGCB recommended, which was that DFS operators, such as FanDuel and DraftKings, two of the biggest DFS providers in the United States, partner with one of the state’s land-based casinos. What the bill (PDF) does do, however, is require licensed DFS operators to dole out the lesser of 7.5 percent or $50,000 of their take from players in Pennsylvania, as well as a 5 percent tax on that revenue payable on a quarterly basis.
Other stipulations of the bill include the restriction of the activity to those 18 years of age or older, with land-based casino licensees having the option to raise that to 21 or older. They also can choose to add “fantasy contest terminals” to their properties. College sports are excluded from DFS contests under the bill and it also limits the number of entries that one player can submit for each contest.
Meanwhile, after DraftKings and FanDuel were shut down by Attorney General Eric Schneiderman earlier this year in New York, and in addition to being closer to regulating online poker the state may soon regulate DFS. An agreement reached between DraftKings and FanDuel and legislators, the two operators each make annual payments of $150,000 plus 15 percent of the in-state revenues post distribution of cash prizes.