Getting in fantasy sports game

Daily fantasy sports represent what providers tout as a multibillion-dollar industry in the United States, and Rhode Island wants a piece of it.

States vary on the issue of legality, however. New York’s Superior Court notably ruled this past December that chance is a substantial factor, thus making it illegal there for real sports statistics to be used by players to create made-up teams that compete for cash.

On Feb. 4, Rhode Island Attorney General Peter F. Kilmartin ruled that the dominant factor in daily fantasy sports is skill as opposed to chance, making it legal in Rhode Island. He urged, “at a minimum,” that the General Assembly put in place regulations and standards that protect minors, address problem gambling, ensure credibility, security and privacy, and even set fees and taxes.

But should the state look to profit from daily fantasy sports? Kilmartin thinks so, as do two lawmakers proposing legislation.

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“Any source of legal gambling is a legitimate source of revenue for the state,” Kilmartin told Providence Business News. “Look at Twin River [Casino] and the Newport Grand. They’re taxed at about a 60 percent rate for the state, so I think the state has a legitimate interest in getting taxes and revenue” from fantasy sports play.

Two House bills have already been submitted, HB 7075 by Rep. Jared R. Nunes, D-Coventry, and HB 7492 by Raymond Gallison Jr., D-Bristol.

Neither House Speaker Nicholas A. Mattiello nor Senate President M. Teresa Paiva Weed were willing to comment last week on the bills. Gov. Gina M. Raimondo wants to study what other states are doing, and is reviewing the issue “to figure out the right approach,” said spokeswoman Marie Aberger.

“We have casinos in Rhode Island, and the revenue comes to us, so why shouldn’t we also collect revenue from the fantasy games being played on the Internet?” Gallison contended.

His bill enables the state Department of Business Regulation to regulate fantasy sports in Rhode Island, spelling out rules ranging from how to enforce the standards governing contests, the fees and potential fines associated with companies doing business in the state and taxes paid by players.

The other bill leaves the determining of specific regulations to a different state department, the Division of Racing and Athletics, which is part of DBR. Neither lawmaker has projected possible revenue for the state should their bills become law.

“It’s a possible revenue generator,” said Nunes. “Instead of putting up tolls, maybe we should be looking at creative revenues like that.” •

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