Surprisingly, there is a solid chance that Daily Fantasy Sports could become legalized in California before online poker.
On Friday the Assembly Committee on Appropriations unanimously voted in favor of AB 1437. The 15-0 vote comes three weeks after the Assembly GO Committee voted 17-1 on the same measure.
The bill now moves to the Assembly floor for a possible vote.
Bill Will Regulate DFS Only
The Internet Fantasy Sports Games Consumer Protection Act is a bill filed by Assemblyman Adam Gray, the same person who championed AB 431 to regulate California online poker.
Should AB 1437 pass, it will allow California regulators to issue licenses for companies such as FanDuel and Draft Kings.
DFS companies have been operating in a legal grey area in the United States up until late last year when several states started challenging the legality of the activity.
Some states, such as New York, Florida and Nevada, have declared the activity illegal gambling. This has sent DFS companies and their investors scrambling to find a way to save their Billion dollar industry.
DFS organizers are arguing that their activity is a game of skill akin to online poker. Of course, we’ve seen how successful that argument has worked for poker in the past.
If California were to regulate DFS this would be a huge coup for companies and their fight to legalize the activity.
California AG Could Foil Plans With Negative Opinion
While AB 1437 isn’t necessarily a slam-dunk, it doesn’t appear to have as many roadblocks as iPoker bills have in the past.
With that said, California Attorney General Kamala Harris could thwart lawmaker’s plans should she turn in a negative opinion on DFS.
Harris has yet to issue an opinion regarding DFS. Should she decide to declare DFS as illegal gambling, this could prove disastrous to regulation efforts.
Harris has largely ignored the issue until now, perhaps waiting to see whether a bill will be pushed through.
Should this bill fail to gain momentum, she may proceed with an opinion. The next four to six weeks could likely determine the future of DFS in California.