Iowa makes new effort to legalize daily fantasy sports betting

DES MOINES - A proposal to legalize fantasy sports wagering, including online daily fantasy sports websites such as DraftKings and FanDuel, was approved Wednesday by a panel of state lawmakers.

Introduced in the Iowa Senate, the bill is similar to legislation under consideration in the House. The proposals legalize fantasy sports and provide state regulation, fee structures and consumer protections.

'It's my view that fantasy sports betting is a cultural and social phenomenon that is growing in this country, and it is occurring in Iowa whether we like it or not,” said Sen. Bill Dotzler, D-Waterloo. 'I believe this bill is a step in the right direction to regulate something that is occurring in our state.”

A similar bill was approved last month by an Iowa House committee but since has received no legislative activity.

Spurred by the burgeoning online daily fantasy sports industry, the Senate bill establishes a state regulatory structure and penalties, taxes the industry and places oversight in the hands of the Iowa Racing and Gaming Commission, which oversees gambling in the state. Daily fantasy sports surpassed $2 billion in entry fees last year and could surpass $14 billion by 2020, according to the gambling research firm Eilers Research.

Dotzler said the Senate bill is similar to the House bill as lawmakers attempt to reach cross-chamber consensus as the legislative session nears its completion.

'Our Republican colleagues … see it as an expansion of gaming,” Dotzler said. 'I really view it as a cultural and social phenomenon that's going on that we need to regulate to keep people from being ripped off.”

As with the House proposal, the Senate bill was supported by DraftKings, FanDuel and the Fantasy Sports Trade Association.

Opponents of the bill, including social advocacy groups, say they don't want to see an expansion of gambling in the state, particularly online.

'It is still gambling, and it opens the door to more Internet gambling,” said Brian Carter, a lobbyist for the Iowa Conference of the United Methodist Church. 'I urge you to look at it, whether it really is better for the common good of Iowa.”

Danny Carroll, with the Christian faith and advocacy group The Family Leader, said legalizing daily fantasy sports gives it 'a certain air of legitimacy.”

'Very simply, we don't want to see gambling expanded to the Internet in Iowa,” Carroll said.

Six states, including Illinois, have legalized daily fantasy sports, and more than a dozen more have legislation pending.