In September 2015, before the DraftKings-FanDuel scandal had even occurred, House Rep. Frank Pallone, Jr. (D-NJ) voiced his concerns about the two daily fantasy sports betting (DFS) websites, which rapidly became billion-dollar industries over the last year. He urged the U.S. Congress for a congressional hearing into the legality of DFS.
In a September 14, 2015 letter to House Republicans, Pallone stated that DFS “sites are enormously popular, arguably central to the fans’ experience, and professional leagues are seeing the enormous profits as a result.” He explained that “[d]espite how mainstream these sites have become . . . the legal landscape governing [DFS] activities remains murky and should be reviewed.”
Pallone’s words have not been stifled in the wake of the DFS scandal, which occurred in late September, shortly after he voiced his concerns to Congress. On October 22, 2015, Pallone sent letters to executives of DraftKings and FanDuel, requesting information on how the companies track its users to ensure professional athletes are not impermissibly playing DFS games.
The Congressman specifically referenced the rules put in place by the country’s professional sports leagues and the NCAA, which completely ban, or at least limit, athlete participation on DFS websites. Obviously, if athletes are gambling on the same sporting event they are playing in, there are substantial conflicts of interest. Pallone’s letter to the DFS giants requested “more information on how these companies are functioning and how they relate to the sports leagues and the players who stand to make a profit.”