Connecticut, Pennsylvania advance bills with uncertain futures for DFS

Chambers of the legislatures of the commonwealth of Pennsylvania and the state of Connecticut both passed legislation that would legalize and regulate daily fantasy sports and/or betting on sporting events late on Wednesday, but what will happen to both bills from here is unclear.

The continuing drama at the state level regarding DFS and gambling legislation involved Connecticut and Pennsylvania on Wednesday night. Hours after the Pennsylvania House of Representatives approved H 271, the Connecticut House did the same with SB 957. The text and next steps of each piece of legislation differs, but both bills have one thing in common; their ultimate fate is uncertain.

H 271 in Pennsylvania could be stuck in negotiations between the two chambers of Pennsylvania’s legislature for some time yet. The several amendments that the bill has already seen got more revisions last night before the House approved the text for a second time, and the bill will now head back to the Senate for approval of the current version.

What’s important for Pennsylvania citizens to know regarding daily fantasy sports is that this legislation would authorize casinos and other businesses to sell entries in fantasy sports games. Like most other bills of this nature, there is a licensure structure, which carries a fee of $50,000. Annual revenue would be taxed at a rate of 12 percent as well.

Regarding sports gambling, the bill creates infrastructure that would make the state’s airports and casinos turn-key operators in the business should the federal law outlawing betting on sporting events be overturned, as is being discussed in the United States House of Representatives right now. The bill authorizes the state’s casinos to buy licenses that would currently enable them to offer Internet card and table games at their properties. The bill also allows airports to work in conjunction with casinos to offer the same games. Should PASPA (the federal law outlawing gambling on sports) be repealed, those platforms could easily accommodate betting on sports very quickly.

Later Wednesday night, the Connecticut House approved what looks like the final draft of SB 957, advancing the bill to Governor Dannel Malloy. According to Katie Barlowe of Casino.org, Malloy has stated that he will not veto the bill. That doesn’t mean that the bill is good to go, however.

The bill is controversial because it authorizes the construction of the state’s third casino and first not built on tribal lands. It appears that entertainment mogul MGM plans to challenge the new casino in court because it is a joint venture between the state’s other two casino operators. The potential lawsuit will claim that forms an illegal monopoly in the state.

While SB 957 does not contain any language that would affect the status of DFS in the state, it does mirror the Pennsylvania bill in that it creates a framework for sports betting if PASPA gets thrown on to the pile of antiquated legislation.

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While the immediate futures of these bills is murky, what’s clear is that in both Connecticut and Pennsylvania, the future of sports gambling could be bright upon the fall of PASPA.