Tennessee House approves bill seeking to legalize DFS
The move comes just days after the state attorney general said the activity meets the definition of illegal gambling
Just days after the Tennessee attorney general ruled daily fantasy sports (DFS) was illegal gambling, the state House has approved legislation seeking to legalize the activity. [private]
A House finance subcommittee yesterday approved HB 2105, which if passed into law would create a task force to establish consumer protections for DFS.
The task force would consist of nine members â with the speaker of the Senate and the House and the attorney general appointing three members each.
The group would be required to report their findings by January 1, 2017, when a proper legal framework for DFS would be established.
The news comes shortly after Tennessee Attorney General Herbert Slatery opined that DFS meets the definition of illegal gambling under state gaming law.
Slatery was responding to a request from House Minority Leader Craig Fitzhugh to answer the question: Do fantasy sports contests constitute illegal gambling under Tennessee law?
Slatery noted that participants pay an entry fee in order to win a prize, and that those fees comprise the prize fund.
âBy proffering these entry fees, participants agree to risk something of value for a profit â a portion of the pot,â he said.
âThe only remaining consideration is whether a participantâs ability to win a fantasy sports contest is to any degree contingent on chance.
âWhile participants may use skill to select players for their teams, winning a fantasy sports contest is contingent to some degree on chance,â Slatery added.Â
The AG did say, however, that the state legislature had the power to pass legislation that would exempt daily fantasy sports from gambling law.