SACRAMENTO – Today Assemblymember Adam C. Gray (D-Merced) advanced legislation to establish consumer protections for Californians who play Daily Fantasy Sports (DFS). AB 1437, which seeks to create a regulatory and licensing framework for DFS websites (i.e. FanDuel, Yahoo, and DraftKings), passed the Assembly Floor on a 68-1 vote.
“The support of the Assembly today sends a strong signal that protections for consumers and children online are a top priority,” said Gray. “We have a responsibility to put safeguards in place to ensure a fair and level playing field.”
Media outlets throughout the country have speculated for months about the legality of DFS after the New York Times published a story about insider trading among DFS employees. Gray struck an even tone on the question of legality.
“The legal question is one for our Attorney General and the courts,” said Gray. “The fact remains that we have millions of constituents playing these games with zero assurance of state protections. This legislation will bring California’s laws into the 21st century and provide consumers with the safeguards they expect this Legislature to provide.”
When Gray introduced AB 1437 last September, it was the first substantive bill in the nation to propose regulating Daily Fantasy Sports. Today, it was the first bill in the nation to be approved by an entire legislative body.
“We are ahead of the curve,” said Gray. “California is setting the tone for the rest of the nation on what a regulatory framework should look like. While there is still a lot of work to be done, I believe California will be the first to pass and implement legislation that allows its citizens to continue to play a game they love in a safe and fair environment.”
The bill will next be heard in Senate Governmental Organization Committee.