A congressional subcommittee will examine the daily fantasy sports industry during a Wednesday hearing in Washington, D.C., that could lead to further discussion on the sports betting laws in the United States.
The House Subcommittee on Commerce, Manufacturing and Trade will hold a hearing titled "Daily Fantasy Sports: Issues and Perspectives" at 10:15 a.m. ET, Wednesday at the Rayburn House Office Building. It is an informational hearing that will focus on the legal controversies surrounding daily fantasy sports, the key consumer protection issues and whether federal oversight is needed. A committee source and published statements from witnesses indicate a broader look at the prohibition of traditional sports betting and online gambling laws also will be part of the discussion.
The two largest daily fantasy operators, FanDuel and DraftKings, and the professional sports leagues invested in them chose not to attend Wednesday's hearing. FanDuel and DraftKings were sent official written invitations from the committee. Both elected not to send company officials and instead will allow the Fantasy Sports Trade Association (FSTA) to represent them.
It's not uncommon for companies to send trade associations as representation in initial congressional hearings, but the absence of the leading DFS operators is notable. Just two months ago, FanDuel CEO Nigel Eccles and DraftKings CEO Jason Robins testified in front of the Gaming Policy Committee of the Nevada Gaming Control Board, but they are not expected to be in attendance Wednesday.
FanDuel and DraftKings said they are comfortable being represented by the FSTA and look forward to working with leaders at the state and federal levels as the discussions continue. FSTA president Peter Schoenke and Steve Brubaker, executive director of the Small Business Fantasy Sports Trade Association, will represent the industry.
The NFL, NBA, NHL and Major League Baseball also were invited to testify but declined. The NBA has equity in FanDuel, and commissioner Adam Silver has called for Congress to "adopt a legal framework that allows states to authorize betting on professional sports, subject to strict regulatory requirements and technological safeguards."
The NBA did not respond to multiple emails inquiring about the hearing.
The NHL and Major League Baseball have equity in DraftKings. The NFL does not have any deals with FanDuel or DraftKings at the league level, but 28 of 32 teams have sponsorship or marketing agreements with the companies, and New England Patriots owner Robert Kraft and Dallas Cowboys owner Jerry Jones have equity in DraftKings.
