Two states which have been ambiguous about the legal status of daily fantasy sports could be about to pass new legislation on the subject.
Arkansas and Ohio, which up until this point have been mum on the subject, both now have daily fantasy sports bills being considered by their state legislators. Judging from the text of the bills, the possibilities are that DFS players in the states would have legal protections and the state treasuries could benefit as well.
Arkansas House Bill 2250 would create special language in the Arkansas code that protects DFS players from criminal prosecution. Although it hasn’t been enforced, DFS games could be considered a game of chance and therefore it’s possible Arkansas residents could have charges brought against them by the state under current laws.
The bill sponsored by state Representative Jimmy Gazaway (R, Paragould) would change that, labeling DFS a game of skill rather than chance. In exchange for that classification, Arkansas would require companies who operate the games, like DraftKings, FanDuel and Yahoo!, to register with the state and pay an annual tax of eight percent of its profits made in the state.
The Ohio bill introduced by Representative Jonathan Dever (R, 28th District) and Representative Robert McColley (R, 81st District), HB132, is similar in structure and intent. The bill would classify DFS as a game of skill, not chance. The current situation in Ohio is much like that in Arkansas, where the games could be considered illegal according to current laws, but none of the bodies with the power to enforce the law in that way seem interested in doing so.
Like in Arkansas and many other states, the state would collect a fee from game operators. In this case, however, it would be a flat $30,000 annual payment as opposed to a percentage of profits made in the state. The Ohio bill goes a bit further, however, creating regulations for licensees regarding employees playing, mandating segregation of player funds, and requirements for licensees to provide resources for gambling addicts.
Neither of the bills have yet reached the full House floors for formal votes, and in neither state is there a concurrent Senate bill being considered. There has been no official statement from either Arkansas Governor Asa Hutchinson or Ohio Governor John Kasich on whether or not they would sign such legislation into law, either. All that means this process is very early, but is taking place nonetheless.
If the bills are enacted, they would make Arkansas and Ohio the 13th and 14th states to give DFS exemptions from gambling prohibitions. While residents who play DFS currently have little worry of actually being prosecuted, the biggest affect of these bills is that the respective state treasuries could be about to find new revenue streams.