One Step Closer to Regulated DFS in California

With an unanimous vote the Committee on Appropriations has passed the bill that would regulate DFS in California.

AB 1437, the Internet Fantasy Sports Game Protection Act, has been approved by the Committee on Appropriations with a unanimous vote. Previously, the bill was passed by the Governmental Organization Committee by a vote of 17-1. The purpose of the bill is to create a framework to license and regulate DFS in California. According to the bill’s author, assemblyman Adam Gray, Californians regularly participate in DFS games on unregulated sites.

Framework for regulated DFS in California

AB 1437 would bring more “transparency, accountability and protections to this rapidly growing industry,” puts the bill’s comments section. Analyst Adam Krejcik of Eilers Research says that DFS entry fees could hit USD 17,7 million in 2020. According to Krejcik, DraftKings collected more than USD 10,9 million in the NFL season’s first two weeks. With the implementation of the Internet Fantasy Sports Game Protection Act the state would be able to collect income tax revenues.

Changes to Adam Gray’s AB 1437

The bill was significantly changed since it was first passed. Based on its current form, operators would be required to pay a quarterly fee on top of a one-time license fee. AB 1437 would also prohibit users under the age of 21 to play DFS in California.