Bet On This: Lawmakers Will Take Closer Look At Daily Fantasy Sports Betting
DENVER (CBS4) - Colorado U.S. Rep. Diana DeGette says she is shocked by the daily advertisements for fantasy sports betting and is questioning the business practices of the companies involved.
Daily fantasy sports betting ads are everywhere on the Internet and TV. Fan Duel and Draft Kings are among the biggest.
One ad proclaims, "Fan Duel offers one day fantasy sports leagues for real money with no season-long commitments and immediate cash payouts."
It's become a billion dollar business, but highly regulated Colorado casinos aren't doing it. Geoff Freeman, the CEO of the American Gaming Association, says clarification is needed.
"Our opinion is that it needs to be black or white. It's either a legal product that our heavily regulated businesses can offer, or it's an illegal product, in which case nobody should be offering it," Freeman said.
He added regulators are advising casinos to steer clear of daily fantasy sports betting because it's a "gray area."
CBS4 Investigator Rick Sallinger asked Colorado U.S. Sen. Cory Gardner if he felt more scrutiny over daily sports fantasy betting is needed.
"There will be some people pushing for hearings. I myself am trying to find out more about it, learn more about it before I make any decision on what to do," Gardner said.
Congress is in the process of deciding whether hearings should be held.
"We can probably expect to have some hearings on it and then we could probably anticipate some legislation if appropriate," Colorado U.S. Rep. Scott Tipton told Sallinger.
For now it's full speed ahead for daily fantasy sports betting.
Roger Hudson, a spokesman for the Colorado attorney general, told CBS4 the activity is not illegal under federal law. But others in Washington are now questioning if that law was written too broadly.
CBS4's Rick Sallinger is a Peabody award winning reporter who has been with the station more than two decades doing hard news and investigative reporting. Follow him on Twitter @ricksallinger.