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How FanDuel, DraftKings and Daily Fantasy Players Can Win the Political & Regulatory Game

Steven Randazzo
30 min readNov 17, 2015

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“It is clear that DraftKings and FanDuel are the leaders of a massive, multibillion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York, and not on my watch.” — Eric Schneiderman, Attorney General of New York

Those are the words from Eric Schneiderman, Attorney General of New York on the completion of an investigation his office conducted on daily fantasy sports. Schneiderman’s office started the investigation into the legality of DraftKings and FanDuel after a data breach and insider trading allegations in late September. Since then, DraftKings launched and completed their own internal investigation on the data breach and insider trading and found no evidence of wrongdoing, the Fantasy Sports Trade Association launched the Fantasy Sports Control Agency, a self-regulating body led by former U.S. Labor Secretary Seth D. Harris and there is pending legislation in California, Illinois, Minnesota, Pennsylvania, New York, New Jersey, Massachusetts and investigations into the legality of daily fantasy sports (DFS) in Georgia, Florida and of course New York.

New York is now the second state to order a full cease and desist order of FanDuel and DraftKings in the state after Nevada’s Gaming Control Board ruled in early October. And while Nevada wasn’t a surprise — and not really a huge hit overall to the daily fantasy sports industry — New York is a big loss. According to Eilers Research, New York has the highest percentage of daily fantasy sports players, which account for roughly 500,000 players, of any state. It’s important to note that the cease and desist order was only issued to FanDuel and DraftKings, meaning other daily fantasy sports websites like Yahoo can continue to conduct business in New York.

A Couple Thoughts

First, why is the cease-and-desist order only to FanDuel and DraftKings? Yahoo, Draft Day and every other daily fantasy sports website out there has the exact same business model of FanDuel and DraftKings — so why only shut down those two? If the New York Attorney General’s real motivation is to protect consumers — protect them — issue a blanket shutdown of all daily fantasy sports in the state. Since when is the law the law for some and not for others? We’ve seen this model in the past and the horrible repercussions it can have. The purpose of the law is to be enforced equally — this is something the attorney general is not doing.

Second, the letter issued by the New York Attorney General allows FanDuel and DraftKings five days to respond and indicate why he shouldn’t pursue cease-and-desist orders against them. FanDuel CEO Nigel Eccles indicated that FanDuel (which has a location in New York) will do everything they can to convince Schneiderman not to. My reaction to this is simple — don’t waste your very valuable time. Schneiderman’s very political and antagonistic words are proof enough that he won’t be changing his mind. Instead, focus on hiring the best lawyers to fight this in court — which they are — while also pursuing regulatory action.

Third, what does this mean for investors? I think this may be one of the most interesting questions. Since early October, the commissioners of the MLB, NBA, and NFL have come out in favor/neutral of daily fantasy sports. The strongest supporter was Adam Silver of which the NBA is an investor in FanDuel. Two very influential NFL owners, Jerry Jones and Robert Kraft are investors in DraftKings and are on record supporting daily fantasy sports. And yesterday, I saw a tweet from Daniel Roberts — Fortune Magazine reporter who has been covering the daily fantasy sports saga — which said that he had asked investors what they thought at the time of the Nevada ruling. The response was, Nevada shutdown was ok, but if something happens in New York, then they would worry. And that’s where we are. So what happens to these two billion dollar companies that are no longer allowed to operate in the largest market of the nation? While I don’t expect FanDuel and DraftKings to go back out for another round of fundraising, how bearish can we expect investors to be on anything daily fantasy going forward?

So while this unravels in New York, there are other parts of the country where the legality of daily fantasy sports is still up in the air. And if FanDuel and DraftKings and anyone else who wants to prevent what happened in New York and Nevada to happen else where, we as daily fantasy sports players/supporters/industry need to do something different than the status quo.

The actions that need to be taken are:

Change the fucking message. The message that daily fantasy sports is a game of still and is not gambling is a losing message. No matter how much you, me, FanDuel CEO, you mom, dad, and dog believe this to be true — it is not a message that is working. People — especially those who do not play daily fantasy sports — don’t believe it is a game of skill and see daily fantasy sports as an equal to blackjack, poker and any other game of chance. I understand that under the Unlawful Internet Gaming Act that companies have to keep saying this to stay compliant under federal law — but that doesn’t mean it should be the main message.

Instead of pushing back on regulation and being a proponent of self-regulation, be a proponent of government regulation. Instead of no regs, the message should be good regs = yes.

Lobby and pay for influence. I’ve written about this fairly extensively already right after the Nevada Ruling. But this time I wanted to go a step further in not just explaining what DraftKings and FanDuel should do but also what the regular daily fantasy sports user can do and what action is being taken in different states. [QUICK NOTE: In my analysis of California, New York and Illinois, I couldn’t find one dollar donated to a politician from either DraftKings or FanDuel].

In one of my previous posts I say, for lack of better words, online petitions are crap and guess what, so are phone calls and letters. I remember back in 2005 when Supreme Court Justice Samuel Alito was going through his senate confirmation hearings and was scheduled for a floor vote. At the time I was interning for a Senator, which meant I was on mail and phone duty. All day, everyday for about two weeks I was bombarded with phone calls

These don’t work!!!!

and post cards in favor and against Alito’s confirmation. Do you want to know what I did with those? I tallied them up and gave them to the staffer who was in charge of that issue. Did the staffer give the Senator that info? Yeah, along with a ton of other information that was a lot more important and influential. Did the Senator take that info into consideration when making his decision, probably, but I can tell you some bullshit tallies on a piece of paper was not the trump card in his decision-making process — you know what probably was? How about the individual meetings he had with stakeholders who were involved in the process from the beginning? How about those people who contributed to his campaign and got a level of access not afforded by the noncontributing citizen?

And that is what we in the daily fantasy sports industry need to realize. While the industry is still in it’s nascent stages, it is no excuse to be out gunned and out thought. Daily fantasy sports is in the midst of a major cash grab by states, the federal government, casino industry and the daily fantasy sports industry itself.

The other players in this equation have a lot of experience when it comes to working the bureaucracy, lobbying government, and molding legislation but it is time for the daily fantasy sports industry to get up to speed and work with government, embrace regulation and use their influence to get a solution that works.

The industry has a couple of options on how they can go about it.

1. The Kansas Model. The Kansas State Gaming Commission declared that fantasy sports was an illegal lottery and was shut down until legislation was passed in May 2015 and signed by the governor to legalize daily fantasy sports in the state. This model could work in both New York and Nevada. In New York there currently are two pieces of legislation that could lead to DFS becoming legal again — more on this below.

2. Lobby, Donate, Draft Legislation. For the 43 other states that are out there where daily fantasy sports is currently legal, don’t wait for something to happen, take action and get the framework that needs to be in place to protect the industry — that means regulations. The issue with regulations right now is not if or when, but how politicized is daily fantasy sports going to be in the regulation development process. Already we have seen the politicization of daily fantasy sports with the statement by the New York Attorney General, who wants to characterize himself as a white knight saving the poor dummies being scammed by FanDuel and DraftKings. Of those 43 states where daily fantasy sports is legal, seven of them have proposed legislation. In Georgia and Florida where opinions by state government have threatened the legality, people should push for the introduction of legislation.

If we lived in a perfect world, FanDuel and DraftKings should have model legislation they are giving to every single pro-DFS legislator out there that they can then introduce at the beginning of the next legislative session for each state. This works — less work for legislators means your bill gets introduced sooner and has a higher likelihood of being heard for passage. Half the problem with legislation not being heard is that there isn’t enough time to get it through the process.

So what can I do as an individual daily fantasy sports player in one of these states that isn’t some bullshit petition. That’s what I want to break down for you.

Donate. Money talks and let’s leverage that to send a message with your money. Lets embrace the fact that you can enter a contest for $1 — $3 and send a donation of that amount to the state reps that have actual influence and power over the fate of daily fantasy. Small donations get a lot more attention than a fucking petition. Small donations are something politicians can use not only in monetary value but in symbolic value, i.e. “I received 100 $1 donations vs. your 1 $100 donations, you have less support and are being bought.” Below I breakdown California, New York and Illinois, three states where legislation has been introduce, including members and committees where legislation will have to go through. Included in that, where available, is information on the most recent contributions the state legislator has accepted.

Meet with State Legislators in Person. This one takes a little more effort than donating a small amount of money online but can have a lasting impact. In my experience as a lobbyist for Governor Bill Richardson (D-NM), one of my biggest takeaways was that legislators like to talk and they like to talk anecdotally about their own experiences and use those experiences as empirical evidence to make decisions. Use this to your advantage. Talk to your legislator and mention how daily fantasy sports isn’t destroying your life, about how you enjoy it as a hobby, and how you don’t have to suck dick in an ally to raise funds to enter DraftKings Millionaire Maker.

The point is, with such fiery statements from a very high-ranking and influential politician in Eric Schneiderman + all the bad coverage of daily fantasy insider trading and data breaches, daily fantasy needs a real face for state legislators to associate it with — not just two billion dollar company CEOs. Already, based off the New York ruling, Assemblyman Marc Levine from California has written the California Attorney General asking for a shutdown of FanDuel and Draftkings in the state of California, until California law is made clear and consumers are protected. Give Assemblyman Levine more to work off of other than the politicized words of an Attorney General.

After I wrote the top piece, a couple days later John Oliver did a large segment on daily fantasy sports. He said a lot of very telling and true things, but the part that stuck with me the most was the footage of people in New York protesting the NY Attorney General’s Office. John Oliver pointed out that 50 of the 75 people protesting were FanDuel employees. In addition to that, people were standing their chanting “game of skill.” You can watch the full segment below.

After I saw the Oliver piece I just couldn’t believe it, FanDuel did the exact opposite of what they should be doing. Who the hell is running their PR and government relations? Get your shit together FanDuel, you have only perpetuated the two biggest points you shouldn’t be — that only your company cares what happens and by having 50 FanDuel employees chant “game of skill” it sounded like you were trying to indoctrinate people into some type of cult. You might have been better off chanting “one of us” and passing out the special Kool Aid — at least then the ending would be less painful. Before you totally screw this up, DraftKings and FanDuel, hire someone who can effectively fix your messaging and understands how to interact with politicians and the media. The next time you think something is a good idea, like lets say a protest that really only consists of your own employees — do the opposite.

The industry needs to take advantage of their users’ passion — which is something an online petition cannot convey.

3. Ballot Initiative. This is possibly the most difficult, but there are states that give their citizens the right to put proposed initiatives to a public vote. The most recent successful example of this was the legalization of recreational use of marijuana in Colorado and Washington. Initiatives may have to go through the state legislature for some type of vote to get on the ballot, or your state may allow initiatives on the ballot based off signatures; more info on ballot initiative here.

Final Thoughts

Before I break down California, New York and Illinois, all states where legislation is currently being considered, I want to say that contrary to what Attorney General Eric Schneiderman believes, as a daily fantasy sports player, I am not a rube that needs to be saved from the evils of FanDuel and DraftKings. I am an adult, I make my own decisions and in that and under current law am allowed to play daily fantasy sports and will continue to do so until the law changes to say I cannot. I do believe in regulations and would welcome them but only if they are reasonable and well thought out, which isn’t a lot to ask for. Daily fantasy has disrupted the sports and entertainment industry in a way that no one could have anticipated, but fear of the unknown is not a reasonable reason to ban something.

DFS Legislative Breakdown For California, New York & Illinios

Ok, so here is a breakdown of California, New York and Illinois. All three states are in different phases and situations regarding daily fantasy sports. There are five other states where action is happening but these are the states where some of the largest user populations are.

California

  • Party Breakdown by Chamber
  • State Senate: 25 Democrats, 12 Republicans
  • State Assembly: 52 Democrats, 28 Republicans

On September 10, 2015 legislation was introduced calling for the regulation of daily fantasy sports by California State Assemblyman Adam Gray. The legislation calls for licensing, taxation and consumer protection measures. On September 11, 2015 the bill was referred to the Committee on Government Organization, which Assemblyman Gray is the chair. The committee has jurisdiction over alcohol, Indian gaming, horseracing, gambling, tobacco, public records, open meetings laws, state holidays, outdoor advertising and emergency services/natural disasters. The bill isn’t scheduled to be heard and have action on it until January 2016.

As previously noted, Assemblyman Marc Levine wrote to the office of the California Attorney General asking for a shutdown of FanDuel and DraftKings in the state of California until California law is made clear and consumers are protected.

Read full text of the Committee on Government Organization version.

If the text of the legislation changes, which it likely will, it will change in this committee. The committee will do various markups on the bill and this is really when members of the industry and the public can work with legislators to craft the language in the bill.

Most times, if the legislation gets out of it’s main committee and onto the floor of the first house, it can get through without amendments. BUT if an amendment is put on while on the floor of the first house, it is critical to have the support of the Majority Leader and the Speaker of the House. With that in mind, I have broken down information on members of the committee, including party, district, link for donation, voting record on some high profile votes and campaign contributions.

Once it passes out of the California Assembly, it then goes to the Senate, where it will likely be assigned to the Senate Standing Committee on Governmental Organization, which has similar jurisdiction as it’s Assembly counterpart.

Similar Legislation and Action Taken

Earlier this year, Assemblyman Gray and Coauthored by Senator Isadore Hall introduced A.B. 431, Gambling Internet Poker bill that declares the intent of the Legislature to authorize Internet poker in California and adopt a legal and regulatory framework that complies with federal law. This is probably the closest piece of legislation to what is happening in daily fantasy sports. The legislation was also assigned to the Committee on Government Organization, where it passed 20–0 and then assigned to the Assembly Appropriations Committee where it passed 14–0. On June 1, Assemblyman Gray ordered the legislation to be inactive, which means no movement on it since it’s passage out of committee.

Similar legislation regarding the legality of online poker has been introduced — A.B. 9 and A.B. 167 — both of which have been introduced and assigned to the Committee on Government Organization, but no action has been taken.

California Assembly

Quick note on donations: According to public records, DraftKings and FanDuel hasn’t donated to any of the members listed as of 6/30/2015. This may have changed since then, but that information is not public until the next filing period.

Below is the list of members of the Committee on Governmental Organization. This committee will deal with the meat of the legislation. If the legislation is referred to Appropriations, that committee will look to see if the legislation is revenue negative, neutral or positive. Due to that fact, I am not breaking down all the appropriation committee members but there are some important notes.

Assembly Member John Biglow is the Vice Chair of Appropriations and is also on the Governmental Organization Committee — both times he voted in favor of A.B. 431 Internet Gambling legislation. Tom Daly is on both committees and voted in favor of A.B 431 both times.

Adam Gray (D-District 21), Chair of the Committee on Governmental Organization

  • Contact Assembly Member Gray
  • Campaign Contributions — Gray currently is raising for his re-election in 2016. In his last filing period from 1/1/2015–6/30/2015, Gray raised $335,487.05 and has $180,441.66 cash on hand. 19.8% of contributions to Assembly Member Adam Gray come from gaming-related organizations.
  • To donate to Gray, follow this link.

Eric Linder (R-District 60), Vice Chair of the Committee on Governmental Organization

  • Contact Assembly Member Linder
  • Campaign Contributions: Linder is currently raising for is re-election campaign in 2016. In his last filing period from 1/1/2015–6/30/2015, Linder raised $172,477 and has $151,320.86 on hand. 14.5% of contributions to Assembly Member Linder’s campaign came from gaming-related organizations.
  • To donate to Linder, follow this link.

Frank Biglow (R-District 5), Vice Chair, Committee on Appropriations

  • Contact Assembly Member Biglow
  • Campaign Contributions: Assembly Member Frank Biglow is running for re-election in 2016 and is a current member of the Committee on Government Organization and the Assembly Appropriations Committee. In his last filing period from 1/1/2015–6/20/2015, Biglow raised $310,715.78 and had $409,226.31 on hand. 7.1% of Biglow’s contributions come from gaming-related organizations.
  • To donate to Frank Biglow follow this link (Side note, this might be the most American website I have ever seen. All that is missing is a GIF of Assembly Member Biglow (even his last name is badass) shooting guns in the air yelling ‘MERICA!)

Katcho Achadjain (R-District 35)

  • Contact Assembly Member Achadjain
  • Campaign Contributions: Assembly Member Achadjain is running for the U.S. House in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/30/2015, Achadjain raised $40,500 and has $24,309.31 on hand. 29% of contributions to Assembly Member Achadjain’s campaign came from gaming-related organizations.
  • To donate to Achadjain, follow this link.

Luis Alejo (D-District 30)

  • Contact Assembly Member Alejo
  • Campaign Contributions: Assembly Member Alejo is running for State Senate in 2018 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Alejo raised $72.408.32 and had $49,401.37 on hand. 12.29% of Alejo’s contributions come from gaming-related organizations.
  • To donate to Alejo, follow this link.

Nora Campos (D-District 27)

  • Contact Assembly Member Campos
  • Campaign Contributions: Assembly Member Nora Campos might be running for State Senate in 2020 and is a current member of the Committee on Government Organization. In her last filing period from 1/1/2015–6/20/2015, Campos raised $3,000 and had $2,250 on hand. None of her contributions are from gaming-related organizations.
  • To donate to Nora Campos, follow this link.

Ken Cooley (D-District 8)

  • Contact Assembly Member Cooley
  • Campaign Contributions: Assembly Member Ken Cooley is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Cooley raised $164,900 and had $123,110.75 on hand. 3.9% of Assembly Member Cooley’s contributions came from gaming-related organizations.
  • To donate to Ken Cooley, follow this link.

Jim Cooper (D-District 9)

  • Contact Assembly Member Cooper
  • Campaign Contributions: Assembly Member Cooper is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Cooley raised $224,201.13 and had $162,991.89 on hand. 10.3% of Assembly Member Cooper’s contributions came from gaming-related organizations.
  • To donate to Jim Cooper, follow this link.

Tom Daly (D-District 69)

  • Contact Assembly Member Daly
  • Campaign Contributions: Assembly Member Daly is running for re-election in 2016 and is a current member of the Committee on Government Organization and the Assembly Appropriations Committee. In his last filing period from 1/1/2015–6/20/2015, Daly raised $292,349.20 and had $531,665.15 on hand. 4.37% of Daly’s contributions were from gaming-related organizations.
  • To donate to Tom Daly, follow this link.

Cristina Garcia (D-District 58)

  • Contact Assembly Member Garcia
  • Campaign Contributions: Assembly Member Garcia is running for re-election in 2016 and is a current member of the Committee on Government Organization. In her last filing period from 1/1/2015–6/20/2015, Garcia raised $279,992.72 and had $229,668.71 on hand. 5.9% of Garcia’s contributions were from gaming-related organizations.
  • To donate to Cristina Garcia, follow this link.

Eduardo Garcia (D-District 56)

  • Contact Assembly Member Garcia
  • Campaign Contributions: Assembly Member Garcia is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Garcia raised $95,849.55 and had $47,840.24 on hand. 14.5% of Garcia’s contributions were from gaming-related organizations.
  • Quick note: Governor has signed 16 of Garcia’s bills in Garcia’s first year in office.
  • To donate to Eduardo Garcia, follow this link.

Mike Gipson (D-District 64)

  • Contact Assembly Member Gipson
  • Campaign Contributions: Assembly Member Gipson is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Gipson raised $193,058.84 and had $118,931.37 on hand. 13.5% of Gipson’s contributions were from gaming-related organizations.
  • I can’t find the campaign website for Mike Gipson. The official website listed on Gipson’s Facebook page goes to another Mike Gipson — which looks like a mistake by some intern who set the page up.

Roger Hernández (D-District 48)

  • Contact Assembly Member Hernández
  • Campaign Contributions: Assembly Member Hernández is running for State Senate in 2018 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Hernández raised $114,830.18 and had $95,112.38 on hand. 15.6% of Hernandez’s contributions were from gaming-related organizations.
  • Hernández doesn’t have a campaign website up for donation, but you can tweet at him here.

Reginald Byron Jones-Sawyer, Sr. (D-District 59)

  • Contact Assembly Member Jones-Sawyer
  • Campaign Contributions: Assembly Member Jones-Sawyer is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Jones-Sawyer raised $166,824.74 and had $132,453.98 on hand. 7.4% of Jones-Sawyer’s contributions were from gaming-related organizations.
  • Quick note: Sawyer introduced A.B. 167, Internet poker: Unlawful gaming legislation earlier this year. The legislation hasn’t had any movement, but legalizes and calls for the regulation of online poker in the state of California.

Marc Levine (D-District 10)

  • Contact Assembly Member Levine
  • Campaign Contributions: Assembly Member Levine is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Levine raised $211,096.55 and had $500,265.02 on hand. 7.4% of Levine’s contributions were from gaming-related organizations.
  • To donate to Mac Levine, follow this link.

Chad Mayes (R-District 42)

  • Contact Assembly Member Mayes
  • Campaign Contributions: Assembly Member Mayes is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Mayes raised $170,776 and had $130,171.21 on hand. 18.5% of Mayes’s contributions were from gaming-related organizations.
  • To donate to Chad Mayes, follow this link.

Henry T. Perea (D-District 31)

  • Contact Assembly Member Perea
  • Campaign Contributions: Assembly Member Perea is running for California Insurance Commissioner in 2018 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Perea raised $49,982.62 and had $40,268.13 on hand. 10% of Perea’s contributions were from gaming-related organizations.
  • To donate to Henry Perea, follow this link.

Rudy Salas, Jr. (D-District 32)

  • Contact Assembly Member Salas
  • Campaign Contributions: Assembly Member Salas is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Salas raised $177,153.51 and had $144,767.43 on hand. 8.5% of Salas’s contributions were from gaming-related organizations.
  • To donate to Rudy Salas, follow this link.

Marc Steinorth (R-District 40)

  • Contact Assembly Member Steinorth
  • Campaign Contributions: Assembly Member Steinorth is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Steinorth raised $242,421.84 and had $168,142.42 on hand. 11% of Steinorth’s contributions were from gaming-related organizations.
  • To donate to Marc Steinorth, follow this link.

Marie Waldron (R-District 75)

  • Contact Assembly Member Waldron
  • Campaign Contributions: Assembly Member Waldron is running for re-election in 2016 and is a current member of the Committee on Government Organization. In her last filing period from 1/1/2015–6/20/2015, Waldron raised $100,952.35 and had $224,097.86 on hand. 15.4% of Waldron’s contributions were from gaming-related organizations.
  • To donate to Marie Waldron, follow this link.

Scott Wilk (R-District 38)

  • Contact Assembly Member Wilk
  • Campaign Contributions: Assembly Member Wilk is running for re-election in 2016 and is a current member of the Committee on Government Organization. In his last filing period from 1/1/2015–6/20/2015, Wilk raised $171,422.87 and had $154,188.49 on hand. 11.4% of Wilk’s contributions were from gaming-related organizations.
  • To donate to Scott Wilk, follow this link.

California Assembly Leadership

  • Three other members that are worth to have information about are the Speaker of the Assembly, Majority Leader and Minority Leader.

Toni G. Atkins (D-District 78), Speaker of the Assembly

  • Contact Speaker Atkins
  • Campaign Contributions: In the Speaker’s last filing period from 1/1/2015–6/20/2015, Atkins raised $241,839.82 and had $0 on hand. 8.9% of Atkins contributions were from gaming-related organizations.
  • Toni Atkins isn’t accepting donations at this time.

Chris R. Holden (D-District 41), Majority Leader

Kristin Olsen (R-District 12), Minority Leader

California State Senate

Any piece of legislation regarding daily fantasy sports that comes out of the California Assembly or starts in the Senate will have to go through the Senate Standing Committee on Governmental Organization. The committee has jurisdiction on bills relating to state government organization, horseracing public gaming, the National Guard, alcoholic beverages, and management of public safety emergencies and disaster response, and legislation permitting the use of state-controlled lands.

To date, no piece of legislation regarding daily fantasy sports or online poker has been introduced in the current or the most previous legislative session in the Senate.

Senator Isadore Hall, III (D-Senate District 35), Chair of the Standing Committee on Governmental Organization

  • Contact Senator Hall
  • Campaign Contributions: Senator Hall is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Hall raised $59,200.97 and had $47,432.09 on hand. 7% of Hall’s contributions were from gaming-related organizations.
  • To donate to Isadore Hall, follow this link.
  • Note: Senator Hall coauthored an internet poker bill that was introduced in the Assembly by Assembly Member Gray earlier this year.

Senator Tom Berryhill (R-Senate District 8)

  • Contact Senator Berryhill
  • Campaign Contributions: Senator Berryhill is running for Board of Equalization in 2018. In his last filing period from 1/1/2015–6/20/2015, Berryhill raised $191,630.47 and had $14,607.62 on hand. 6% of Berryhill’s contributions were from gaming-related organizations.
  • To donate to Tom Berryhill, follow this link.

Senator Marty Block (D-Senate District 39)

  • Contact Senator Block
  • Campaign Contributions: Senator Block is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Block raised $53,950 and had $78,869.32 on hand. 9.2% of Block’s contributions were from gaming-related organizations.
  • To donate to Marty Block, follow this link.

Senator Ted Gaines (R-Senate District 1)

  • Contact Senator Gaines
  • Campaign Contributions: Senator Gaines is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Gaines raised $82,423 and had $190,036.04 on hand. 4.8% of Gaines’s contributions were from gaming-related organizations.
  • To donate to Ted Gaines, follow this link.

Senator Cathleen Galgiani (D-Senate District 5)

  • Contact Senator Galgiani
  • Campaign Contributions: Senator Galgiani is running for re-election in 2016. In her last filing period from 1/1/2015–6/20/2015, Galgiani raised $124,485.56 and had $132,614.46 on hand. 1.6% of Galgiani’s contributions were from gaming-related organizations.

Senator Steven M. Glazer (D-Senate District 7)

Senator Ed Hernandez (D-Senate District 22)

  • Contact Senator Hernandez
  • Campaign Contributions: Senator Hernandez is running for Lieutenant Governor in 2018. In his last filing period from 1/1/2015–6/20/2015, Hernadez raised $112.676.65 and had $98,065.71 on hand. 1.7% of Hernandez’s contributions were from gaming-related organizations.

Senator Jerry Hill (D-Senate District 13)

  • Contact Senator Hill
  • Campaign Contributions: Senator Hill is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Hill raised $142,666.13 and had $408,917.08 on hand. 1.8% of Hill’s contributions were from gaming-related organizations.
  • To donate to Jerry Hill, follow this link.

Senator Ben Hueso (D-Senate District 40)

  • Contact Senator Hueso
  • Campaign Contributions: Senator Hueso is running for re-election. In his last filing period from 1/1/2015–6/20/2015, Hueso raised $152,288.74 and had $166,609.96 on hand. 4.3% of Hueso’s contributions were from gaming-related organizations.
  • To donate to Ben Hueso, follow this link.

Senator Ricardo Lara (D-Senate District 33)

  • Contact Senator Lara
  • Campaign Contributions: Senator Lara is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Lara raised $243,544.66 and had $190,843.13 on hand. 5.3% of Lara’s contributions were from gaming-related organizations.
  • To donate to Ricardo Lara, follow this link.

Senator Mike McGuire (D-Senate District 22)

Senator Sharon Runner (R-Senate District 21)

  • Contact Senator Runner
  • Campaign Contributions: Senator Runner is running for re-election in 2016. In her last filing period from 1/1/2015–6/20/2015, Runner raised $41,937.77 and had $102,221.10 on hand. 3.5% of Runner’s contributions were from gaming-related organizations.
  • To donate to Sharon Runner, follow this link.

Senator Andy Vidak (R-Senate District 14)

  • Contact Senator Vidak
  • Campaign Contributions: Senator Vidak is running for re-election. In his last filing period from 1/1/2015–6/20/2015, Vidak raised $131,307.25 and had $80,565.10 on hand. 3.8% of Vidak’s contributions were from gaming-related organizations.

Senator Kevin de León (D-Senate District 24), Senate Pro Tem

  • Contact Senator de León
  • Campaign Contributions: Senator de León is running for Lieutenant Governor in 2018. In his last filing period from 1/1/2015–6/20/2015, de León raised $267,723.72 and had $219,911.17 on hand. 9% of de León’s contributions were from gaming-related organizations.
  • To donate to Kevin de León follow this link.

Senator Bill Monning (D-Senate District 17), Majority Floor Leader

  • Contact Senator Monning
  • Campaign Contributions: Senator Monning is running for re-election in 2016. In his last filing period from 1/1/2015–6/20/2015, Monning raised $106,405.18 and had $151,894.52 on hand. 4.6% of Monning’s contributions were from gaming-related organizations.
  • To donate to Bill Monning, follow this link.

Senator Jean Fuller (R-Senate District 16), Minority Leader

  • Contact Senator Fuller
  • Campaign Contributions: Senator Fuller is running for California State Assembly in 2018. In her last filing period from 1/1/2015–6/20/2015, Fuller raised $129,739.58 and had $110,810.19 on hand. None of Fuller’s contributions were from gaming-related organizations.
  • To donate to Jean Fuller, follow this link.

New York

  • Party Breakdown by Chamber
  • State Senate: 25 Democrats, 33 Republicans, 5 Other
  • State Assembly: 105 Democrats, 44 Republicans, 1 Other

Both the State Senate and State Assembly are up for re-election in 2016.

Two pieces of legislation regarding DFS have been introduced into the New York State Legislature.

On October 30, 2015, A08554 was introduced by Assemblyman Felix Ortiz and referred to the Assembly Racing and Wagering Committee. As of November 16, 2015, no action has been taken on the legislation. The purpose of the legislation is to give the New York State Gambling Commission jurisdiction over fantasy sports.

Full text of the legislation can be found here.

On November 16, 2015, S06092 was introduced by State Senator Michael Ranzenhofer and referred to the Senate Rules Committee, which is where it will likely be assigned to the Senate Racing, Gaming and Wagering Committee — of which Senator Razenhofer is a member. The purpose of the legislation is to exclude fantasy or simulation sports game or education game or contest meeting certain conditions from being considered a “contest of chance”.

Full text of the legislation can be found here.

Similar Legislation and Action Taken

In May 2014 Assemblyman J. Gary Pretlow, Chair of the Assembly Racing and Waging Committee, introduced A09591A, that would legalize certain types of online poker as games of skill and not games of chance. The legislation is from the 2013–2014 session and is the most similar piece of proposed legislation introduced during that session where DFS parallels can be drawn. The legislation was referred to the Assembly Racing and Wagering Committee where no action was taken.

In May 2015, Senator John Bonacic, Chair of the Senate Racing, Gaming and Wagering Committee introduced S05302, the duplicate bill of A09591A from last legislative session, legalizing certain types of online poker games. To date, the legislation has been referred to the Senate Racing, gaming and Wagering Committee, and no action has been taken.

Four pieces of legislation regarding “poker” have been introduced this legislative session and no action has been taken on any of them. Seven pieces of legislation regarding “poker” were introduced in the 2013–2014 session and no action was taken on any of them.

What this means is that if the courts uphold the NY Attorney General’s ruling, it will require presser from the industry and public to get the NY Assembly and Senate to act.

In 2012, Assembly Member Aileen Gunther cosponsored A9556 a constitutional amendment that authorizes casino gambling in the State of New York. The legislation passed and Gunter voted in favor of it. The legislation was approved by the voters.

Quick note on donations: According to public records, DraftKings and FanDuel haven’t donated to any of the members listed as of the last filing period in New York. This may have changed since then, but that information is not public until the next filing period.

New York Assembly Racing and Wagering Committee

Unlike for California, I am not breaking down the campaign contributions for the members of New York. The NY campaign finance database has a horrible user experience, but I have linked to each member’s campaign finance info where available.

Assembly Member J. Gary Pretlow (D-District 89), Chair, Racing and Wagering Committee

Assembly Member Andrew Garbarino (R- District 7)

Assembly Member Phillip Goldfeder (D-District 23)

Assembly Member Aileen Gunther (D- District 100)

Assembly Member Peter Lawrence (R-District 134)

Assembly Member Margaret Markey (D-District 30)

Assembly Member Michael Miller (D-District 38)

Assembly Member Angelo Santabarbara (D-District 111)

Assembly Member Michaelle Solanges (D-District 22)

Assembly Member James Tedisco (R-District 112)

Assembly Member Carrie Woemer (D-District 113)

NY Assembly Leadership

Assembly Member Carl E. Heastie (D-District 83), Speaker of the NY Assembly

  • Contact Speaker Heastie
  • Campaign Contributions 1/1/2015–11/11/2015: View Contributions
  • The speaker was excused for the constitutional amendment vote authorizing casino gambling in NY.
  • No page found for donations

Assembly Member Joseph D. Morelle (D-District 136), Majority Leader

Assembly Member Brian M. Kolb (R-District 131), Minority Leader

New York Senate Racing, Gaming and Wagering Committee

On September 9, 2105, the Senate Racing, Gaming and Wagering Committee held a hearing on the future of online poker in the state. Testimony of the haring can be found here and you can view the full hearing here: https://youtu.be/j4wpeGRtqGU.

Similar to the Assembly Racing and Wagering Committee, the Senate Racing Gaming and Wagering Committee will have jurisdiction over daily fantasy sports.

In 2012 Senator John Bonacic introduced a duplicate piece of legislation for an amendment to the NY constitution that would legalize casinos in the state. The twin legislation that passed the NY Assembly, A09556, passed the Senate unanimously.

Senator John Bonacic (R-Senate District 42), Chair, Racing, Gaming and Wagering Committee

Senator Joseph P. Addabbo Jr. (D-Senate District 15)

Senator Phil Boyle (R-Senate District 4)

Senator David Carlucci (D-Senate District 38)

Senator Leroy Comrie (D-Senate District 14)

Senator Joseph A. Griffo (R-Senate District 47)

Senator George Latimer (D-Senate District 37)

Senator Kathleen A. Marchione (R-Senate District 43)

Senator Michael Nozzolio (R-Senate District 54)

Senator Michael H. Ranzenhofer (R-Senate District 61) Majority Leader for Economic Development

Senator James Sanders (D-Senate District 10)

NY Senate Leadership

Senator John J. Flanagan (R-Senate District 2), Temporary President and Majority Leader

Senator John A. DeFrancisco (R-Senate District 50), Deputy Majority Leader for Legislative Operations

Illinois

  • Party Breakdown by Chamber
  • State Senate: 39 Democrats, 20 Republicans
  • State House of Representatives: 71 Democrats, 47 Republicans

In October 2015, State Representative Michael J. Zalewski introduced HB4323, the Fantasy Contests Act. Cosponsors of the legislation include: Rep. John D. Anthony, Rep. Martin J. Moylan, Rep. Al Riley (Assistant Majority Leader of the House), Rep. Jaime M. Andrade, Jr. and Rep. Lawrence M. Walsh, Jr.. Since introduction, the legislation has been read into the record and assigned to the House Rules Committee which will then assign it to the appropriate House Committee for review. I did a review of the committees and I honestly am not sure where the House Rules Committee is going to place this legislation. They could put it in House Judiciary or House Revenue. The Illinois State legislature has a helpful dashboard that can help navigate the legislative process.

The purpose of the Fantasy Contests Act: “Establishes certain requirements for policies and procedures for the operation of fantasy contests. Provides that any person, firm, corporation, association, agent, or employee who violates any provision of the Act shall be liable for a civil penalty of not more than $1,000 for each violation, which may be recovered in a civil action brought by the Attorney General. Amends the Gambling Article of the Criminal Code of 2012. Provides that participants in fantasy contests as defined under the Fantasy Contests Act shall not be convicted of gambling. Effective immediately.”

The legislation is considered some of the most industry friendly legislation that has been proposed due to the “light touch”.

Similar Legislation and Action Taken

The Illinois Legislature has had some legislation introduced this session, but none that directly address the legality of internet poker. Some of the pieces of legislation have been voted on and can provide some insight on the voting behaviors of the Representatives and Senators.

Daily Fantasy Sports
Regulation
Sports

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Steven Randazzo

Written by Steven Randazzo

161 Followers

Currently @VivaImpulse, Cofounder @huddlehive. Former communications director @HHSIDEALab & former govt. lobbyist for NM.

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