Symposium Has Its Eye on Fantasy Sites

On paper, a panel at the Symposium on Racing and Gaming had the potential to be one of the most dynamic sessions of this two-day conference. However, in execution, it turned out to be something of a dud.

The panel, entitled "Serious Realities in Fantasy Sports," promised an in-depth discussion on the issues surrounding Daily Fantasy Sports. This market has drawn enormous attention due to scrutiny from law-enforcement officials and regulators in several states.

Participants included a gambling attorney from Nevada and a state senator from New Jersey. The senator represents a state trying to legalize sports wagering despite persistent challenges from major sports leagues.

One expected topic was a recent lawsuit filed by The Stronach Group, a racing conglomerate, against Derby Wars. Derby Wars runs an online site for pay-to-play contests. Winners are those posting the highest returns from fictional wagers on horse races.

However, the lawsuit was not mentioned at all. This despite critical issues raised: Derby Wars allegedly conducts illegal wagering under federal law and violates the Interstate Horse Racing Act by not sharing revenues with tracks and horsemen.

The suit also sparks concerns about handicapping contests, key to racing marketing. If The Stronach Group wins, these could be deemed illegal too.

Key Debates on Fantasy Sports

Though the lawsuit was ignored, the panel debated daily fantasy sites. Do their contests qualify for the Fantasy Sports exception in the 2006 federal law banning most gambling?

Participants agreed these sites operate as gambling. New Jersey Sen. Raymond Lesniak joined via video. He predicted legislation to license and regulate sites for consumer protections.

Opportunities for Racing

John Ford, CEO of BAM Software (developers of parimutuel betting platforms), urged racing to target Daily Fantasy Sports players. They share traits with parimutuel bettors. Ford saw fantasy as a way to convert these players to racing.

Regulating Racing Fantasy Sites

Regulating racing fantasy sites came up late. Tom DiPasquale, executive director of the Minnesota Racing Commission, spoke from the audience. He foresaw regulations requiring operators to comply, pay taxes, and share revenues with racing.

Mr. DiPasquale likened it to regulating account-wagering companies.