• Congress Eyes Fantasy Sports Sites
  • October 22, 2015
  • Law Firm: McDonald Hopkins LLC - Cleveland Office
  • Even before a New York Times article that said an employee of the fantasy sports website DraftKings may have engaged in betting with insider information on a rival site - FanDuel - a bet that won him $350,000, the largely unregulated industry was facing scrutiny from some members of Congress. Since the Times article was published, the heat is being turned up on the sites, which generate billions of dollars in revenue.

    House Energy and Commerce Committee member Frank Pallone (D-NJ) had previously asked Chairman Fred Upton (R-MI) to hold a hearing on the industry - something Upton, at the time, said was unlikely to happen given the busy Congressional schedule.

    This week, however, Upton appeared to be reconsidering the decision. A committee staffer told the press that the Energy and Commerce Committee that Upton chairs has a “responsibility to protect consumers and ensure that those participating are not being taken advantage of.”

    Members in both chambers who represent states where gambling is legal, have been some of the harshest critics of online gaming. Senate Minority Leader Harry Reid (D-NV), who represents Nevada - the gambling capital of the country - told the New York Times that “Online gaming is a real scary thing, and we’d better look at all of it.”