PRINTER'S NO. 2787
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
663
Session of
2015
INTRODUCED BY DUNBAR, YOUNGBLOOD, D. COSTA, DAVIS, DIAMOND,
A. HARRIS, JOZWIAK, KOTIK, MAJOR, MILLARD, MURT, NEILSON,
ORTITAY, PAYNE, READSHAW, WARD AND WARNER, FEBRUARY 2, 2016
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, FEBRUARY 2, 2016
A RESOLUTION
Directing the Joint State Government Commission, in consultation
with the Pennsylvania Gaming Control Board, to conduct a
comprehensive study on the potential of fantasy sports as a
gambling product in this Commonwealth and to make a report of
its findings and recommendations.
WHEREAS, The Unlawful Internet Gambling Enforcement Act of
2006 (UIGEA) (Public Law 109-347, 31 U.S.C. ยง 5361 et seq.) is a
Federal law that regulates online gambling, specifically
prohibiting wagers and bets made on the Internet through wire
and other fund transfers that are not expressly provided under
any other Federal or state law; and
WHEREAS, While UIGEA does not change or authorize the
legality of any specific gambling activity permitted or
prohibited under other Federal or state laws, it does provide
specific exemptions to its financial transaction prohibitions,
including an exemption relating to fantasy sports contests that
meet certain criteria; and
WHEREAS, The exemption of certain fantasy sports contests
under UIGEA's definition of bet or wager relating to Internet
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financial transactions has opened the door to varying
interpretations of the legality of daily fantasy sports and a
misconception that fantasy sports are legally authorized by
UIGEA; and
WHEREAS, This misconception has led to the proliferation of
fantasy sports contests, primarily daily fantasy sports contests
played through Internet websites across the country; and
WHEREAS, The Fantasy Sports Trade Association estimates that
57 million people play fantasy sports and bet an average of $465
a year on fantasy sports contests in the United States; and
WHEREAS, Since UIGEA did not specifically legalize fantasy
sports as a gambling activity under Federal law, the legality
and regulation of fantasy sports, primarily daily fantasy sports
contests through Internet websites, has been left to the states;
and
WHEREAS, Currently, there has been little consensus among the
states regarding the legality of fantasy sports betting, with
some states ruling the activity to be illegal sports betting,
while others have concluded that regulating the industry as a
gambling product is the appropriate solution; therefore be it
RESOLVED, That the House of Representatives direct the Joint
State Government Commission, in consultation with the
Pennsylvania Gaming Control Board, to conduct a comprehensive
study on the potential of fantasy sports as a gambling product
in this Commonwealth; and be it further
RESOLVED, That the Joint State Government Commission, in
conjunction with the Pennsylvania Gaming Control Board, within
90 days of the adoption of this resolution, issue to the
chairperson and minority chairperson of the Gaming Oversight
Committee of the House of Representatives a report of its
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findings and recommendations which includes, at a minimum, the
following:
(1) A definition of "fantasy sports."
(2) The structure of the different fantasy sports
formats and the underlying activities that may be appropriate
for oversight.
(3) Fantasy sports entities, including the roles and
relationships of ancillary fantasy sports businesses,
including host Internet sites, collegiate and professional
sports organizations and persons with a controlling interest
in fantasy sports entities, to the best of the commission's
ability based on available information.
(4) How regulation of fantasy sports would be
accomplished under the State's current statutory and
regulatory construct.
(5) If regulating and licensing fantasy sports in this
Commonwealth would violate current Federal law.
(6) The potential impact of authorizing and regulating
fantasy sports contests on compulsive and problem gambling in
this Commonwealth.
(7) The best practices to ensure the protection of
minors from participating in fantasy sports contests.
(8) Measures to ensure reasonable consumer protections.
(9) Safeguards to prevent financial criminal activity.
(10) Safeguards and mechanisms to ensure the reporting
of gambling winnings and facilitate the collection of
applicable Federal and State taxes in compliance with Federal
and State law.
(11) Recommendations for legislative action including
the potential of fantasy sports as a gambling product in this
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Commonwealth.
(12) Any other information related to the conduct,
operation and potential regulation of the different formats
of fantasy sports contests as the commission, in consultation
with the Pennsylvania Gaming Control Board, may deem
appropriate.
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