Connecticut Looking To Enter Daily Fantasy Sports Market

Connecticut is kicking off the 2017 legislative session with legislation that would legalize and regulate Daily Fantasy Sports in the state. The bill would see Connecticut join several other states who have launched legislative initiatives in regards to sports gambling. The bill—HB6400—was introduced by Representative Jeffery J. Berger and was referred to a Joint Committee as of January 23rd. The bill’s purpose is “to regulate fantasy sports contests and place a fee on winnings from such contests.” (HB6400)

What are Daily Fantasy Sports? Think of a typical fantasy sports league, so, with the NFL, for example. Several companies like ESPN and the NFL itself offer fantasy leagues where players draft a team and use them throughout the season. The players on your drafted roster are awarded points for their performances and winners are determined at the end of the season. Daily Fantasy Sports leagues have all of that, minus the season-long commitment. DFS leagues have you a pick a team for that day, or perhaps that week, either way you’re not stuck with the team you play for a whole season. This allows for higher chances of winning and is more appealing to bettors. There is a lot more freedom with DFS leagues as opposed to regular fantasy sports leagues. There are currently two major DFS forces to be considered when discussing the topic: FanDuel and DraftKings.

DFS leagues have been met with a lot of opposition since they came out. Even still, their popularity has pressured the major professional sports leagues and state governments to make stances on them. As of now, DFS is legally regulated in New York, Indiana, Virginia, Massachusetts, Colorado, Missouri, Tennessee and Mississippi. There are other states with pending legislation and some that are against DFS outright. Several sports leagues have equity in DFS, reflecting their support of the industry. The National Basketball Association has a stake in FanDuel—interestingly enough, Commissioner Adam Silver has formally expressed his opinion that sports gambling should be legalized and regulated. Major League Baseball and the National Hockey League have stakes in DraftKings. The National Football League doesn’t have any official ties to either DFS league on its own, but there are several individual franchises within the league who have backed DFS.

There is an ongoing debate concerning the legality of DFS leagues, as evidenced by the differing opinions laid out by states on the matter. One issue is whether DFS is considered sports betting, or rather a form of skill-based gambling. The ‘skill’ comes through the form of understanding how to build a winning team, which requires in-depth knowledge of individual players, strategies, etc. The classification of DFS is important in regards to state laws on gambling as well as the Professional and Amateur Sports Protection Act (PASPA), a 1992 law that bans sports betting in 46 states. These laws influence how state legislators proceed with bills like the one Connecticut proposed.

For Connecticut residents, state regulated sports gambling may not be allowed until PASPA is repealed, but this bill shows the state’s openness to embracing a Connecticut sports gambling industry as a whole. DFS and Nevada-style sportsbooks operate differently, but if Connecticut can get this bill through—and pending PASPA’s repeal—the state may very well see Nevada-style sports gambling in its future.