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DraftKings, FanDuel Testify In Favor Of Indiana Regulations

The two leading fantasy-football companies are backing a proposal to regulate the industry.

DraftKings and FanDuel told a House committee a bill setting standards for daily fantasy sports would ensure players of an honest game -- and prevent legal battles like the one in New York.

The attorney general there is trying to shut down the sites as illegal gambling.

Representative Alan Morrison’s bill would make the games legal and give oversight authority to the Indiana Horse Racing Commission.

Several Public Policy Committee members -- including some who say they're enthusiastic fantasy-football owners themselves -- question that distinction.

FanDuel attorney Stephen Martino says there's an element of chance in virtually any game, and says daily fantasy leagues were created to eliminate the problem of unlucky injuries to key players sinking an entire season.

"Jamaal Charles gets injured in the first week of the season, one of the premiere running backs in the NFL if you’re in a season-long game," Martino says. "If you lose your top couple draft picks in the beginning of the season, you’re out. Daily fantasy sports allows you to reengineer your team through skill."

Derek Hein with DraftKings says the company welcomes state regulations setting standards for fantasy sports operators.

"DraftKings is already an industry leader in user safeguards and we would welcome a regulatory environment that holds all paid fantasy sports companies to the high standards we’ve set for ourselves," Hein says.

Public Policy Chairman Tom Dermody says he may not call the bill for a vote, but says he wanted to start gathering information on the issue, to give legislators a head start in thinking about it.

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