Fantasy Sports
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The California Alliance For Consumer Protection
37 Derow Court, Sacramento, Ca. 95833
(916) 923-2215 fax (916) 923-2216
Legislative Proposal
a funding source for School Sports/entertainment
Programs or Fixing Professional Sports Facilities
PROBLEM(S):
1) Although no specific stats exist, it is estimated that there are over 2,000,000 Californians playing a gambling game entitled Rotisserie Baseball, Football, or Basketball on a regular basis. An alternative name for this type of gambling is “fantasy sports”. Because of the number of people who participate in these games, a cult industry has grown up, highlighted by specialized websites, publications and radio shows.
2) There is a shortage of money to be used to fund after school sports programs.
3) There is a shortage of money to build, construct or fix professional sports stadiums and arenas.
SPECIFICALLY: Rotisserie leagues run on rules that are drawn up by the members of the respective leagues that they play in. The league’s players (called owners) draft players from current teams, using rules similar in nature to those adopted by the sport they are managing. Every roster move by a team owner usually costs something. Throughout the season, as the player collects stats, they are added together to establish totals, and then using pre-approved criteria, the stats are converted into points (ex a home run might equal 4 points), and then based on those points, the teams are ranked from first to last. The higher up the ladder you are, the more money you win. Rotisserie sports has become an unregulated form of gambling that is undefined as to being legal or illegal in California. Additionally, there are no consumer protection concepts associated with this type of gambling.
The issueS that THIS LEGISLATION ATTEMPTS TO ADDRESS:
1) FUNDING:There is a shortage of money in the market place to fun needed programs and improvements. With that in mind, one has to ask this: how do we fund either the expansion of sports stadiums and arenas or pay for after school sports and entertainment programs?
2) LEAGUE POSITION(S): Professional Sports Leagues are silent on the playing of this game. Of course they are publicly against gambling, but do very little to help eliminate it. Only a couple of states have dealt with the legality of this game: In Florida, the game was made illegal, while in Montana, the game was legalized and is pulling in a profit for the state.
3) CONSUMER PROTECTION: Consumers pay money to participate in these games. This raises a variety of questions, with the largest being, who oversees the operations of this growing industry in our state? In other words, who provides consumer protection to California’s consumers?
SOLUTIONS FOR CALIFORNIA:
1) Legalize the private operation and playing of Rotisserie type games by enabling private organizations to become registered and licensed with the State.
2) Take the licensing or taxation revenue and earmark it for use in after school sports and entertainment programs or the payment of sports stadiums or arenas
SECONDARY SOLUTION:
1) Allow the State to run "fantasy games” - possibly through the Lottery Commission.
2) Take the revenue and earmark it for use in after school sports and entertainment programs or the refurbishment of stadiums and arenas in the state.
POSSIBLE SUPPORT: It is undetermined at this time who would actually support this concept. It is believed that support can come from a variety of areas: people who play the games, consumers, professional sports, the Lottery Commission & School Districts are just a few. Another is Indian Tribes who current sponsor gambling on their reservations.
POSSIBLE OPPOSITION: Those opposed to expanding gambling, including professional sports leagues who don’t want to be connected with gambling.
ARGUMENTS IN SUPPORT:
1) Establishing a program like this will enable thousands of people to legitimize a current game that they play.
2) Funds raised can be used to help fund a variety of activities, including after school sports programs.
3) Winnings currently are not taxed by the state and under this program they will be.
ARGUMENTS IN OPPOSITION:
1) The Lottery Commission already has a full plate with respect to projects.
2) Traditionally, professional sports teams and leagues do not support gambling, yet they tolerate the publication of “The Daily Line” which fosters sport interest in their sport, because gambling corrupts spors.
3) This will open up the pro sports gambling flood gates.
SECTION AFFECTED: As per Legislative Council
LANGUAGE ATTACHED: yes.
Suggested language:
Section 1: INTENT: to legalize this game in California
Section 2: The Lottery Commission has the power to create a new game entitled "Rotisserie Sports". This game can also be called Fantasy Sports. These games shall be based on major professional sports, including but not limited to MLB, NBA, NFL and NHL.
Section a: The rules shall be as determined by a 5 member board that oversees the operation of the game.
Section b: Money collected from the game’s operations will go into a fund designed to help pay for prizes, with left overs either paying for after school sports programs or help offset costs for the refurbish or construct of stadiums and arenas.
Section c: The commission has the power to award individual prizes as high as $1,000,000 per sport, per season.
Section d: Money distribution will be based on zip code and amendments
Section 3:
Section a: private enterprise has the ability to run this game as long as they a re licensed and bonded.
