Jim Rosica
A bill to legalize and regulate fantasy sports play in Florida cleared its first Senate review panel on Wednesday.
The Regulated Industries Committee OK’d the “Fantasy Contest Amusement Act” (SB 832) with only two ‘no’ votes from Sen. Gwen Margolis, a Miami Democrat, and committee chairman Rob Bradley, a Fleming Island Republican.
The bill states that “fantasy contests … involve the skill of contest participants and do not constitute gambling.”
Bradley said he still wasn’t convinced that fantasy sports is a non-gambling “game of skill” but agreed with bill sponsor Joe Negron that people shouldn’t be criminals for playing.
As Negron, the Stuart Republican slated to be Senate President next year, put it: “I think our laws should reflect the evolution of how our citizens choose to amuse themselves.”
His bill is partly in response to a 1991 opinion by then-Attorney General Bob Butterworth used by opponents that “operation of a fantasy sports league” violated state gambling law.
The committee adopted a strike-all amendment Negron filed Tuesday, which creates an “Office of Amusements” under the Department of Business and Professional Regulation.
That office will be able to “conduct investigations and monitor the operation and play of fantasy contests.” Contest operators will have to pay $500,000 for an initial application and $100,000 for a renewal of a license in the state.
Marc Dunbar, lobbyist for The Stronach Group, which operates South Florida’s Gulfstream Park, objected to the measure’s lack of criminal penalties for rogue operators who take players’ money and then shut down.
But Negron, an attorney, said anti-fraud laws already on the books will protect players and allow prosecutors to go after bad actors.
That point was driven home by state Sen. Joe Abruzzo, a Boynton Beach Democrat. He told the panel he had called Palm Beach County State Attorney Dave Aronberg, who confirmed Negron’s take.
A House companion (HB 707) also is scheduled to be heard Wednesday by the Finance & Tax Committee. That measure cleared the Business and Professions Subcommittee by a 10-3 vote two weeks ago.
Florida is among several states struggling with whether to regulate fantasy sports, and if so, how. Nevada has banned daily fantasy games while other states, including New York, are considering their legality.
It’s a multibillion-dollar business, attracting nearly 57 million people a year in North America alone.
Fantasy websites, such as FanDuel and DraftKings, also are attracting big bucks from venture capitalists and other investors, such as the professional sports leagues.
5 p.m. update: The House bill was approved on a 15-3 vote. It now heads to the Regulatory Affairs Committee.
