California edges closer to daily fantasy sports regulation
California has taken another step closer to regulating daily fantasy sports (DFS) after a bill that would allow websites to legally offer such services progressed through the state legislature.
AB 1437 would require websites to acquire the relevant licence in order to offer games in the state.
DFS operators would also need to pay an annual regulatory fee and undergo a background check, paying taxes on profits and player winnings.
Earlier this month, the state’s Government Organisation Committee approved the bill with a vote of 17-1.
The bill has now been given a further boost with the State Assembly’s Committee on Appropriations voting 15-0 in favour of introducing such regulations.
Industry consulting firm Eilers Research recently estimated that DFS games could generate up to $3.7 billion ($3.4 billion) in entry fees, in addition to $370 million in revenue this year, with California responsible for 15% of these totals.
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