WagerWire Urges California AG to Maintain Current DFS Status

Similar to sports betting, daily fantasy sports (DFS) is spreading across the United States. Unlike wagering on spots, many states are yet to establish regulations for DFS activities and unless a law prohibits them, fantasy sports is available in different states. California is among a dozen states that currently do not offer any legal form of wagering on sports. Still, DFS competitions are available in the state, at least for the moment.

A probe into the legality of DFS competitions was launched recently in California with lawmakers seeking to determine whether the activity is legal based on the existing regulations. This probe caused frustration for the sector with stakeholders expressing their concern about the potential negative impact for the state if DFS is deemed illegal. One effort in support of the status quo is led by WagerWire, an innovative marketplace that allows bettors to buy and sell sports wagers and provides technology and solutions, powering the betting and gaming sector.

“WagerWire has just submitted a letter to the California Attorney General in support of Daily Fantasy Sports in our home state,“

reads a statement released by WagerWire

The company released a statement on Monday, supporting DFS activities in California. Moreover, WagerWire sided with the Coalition for Fantasy Sports, an initiative supported by innovative fantasy sports platforms such as Betr, Underdog Fantasy as well as PrizePicks. The company sent a letter to the Attorney General (AG) in California, highlighting the importance of the DFS sector for the state.

Regulatory Hurdles May Impact One of the Fastest Growing Industries

According to WagerWire, if DFS activities are classified as gambling and thus become restricted, the state may lose valuable tax revenue. “An adverse opinion by the AG would have a chilling effect that stretches beyond DFS and has the potential to stifle innovation in one of the nation’s fastest growing industries,” wrote the company via LinkedIn.

The latest response comes after California State Sen. Scott Wilks urged for an investigation into the legality of DFS competitions. In a letter on the topic, he explained: “Although the participant may utilize their knowledge of a particular sport in choosing their ‘team’ of players, how well those players perform during a game is completely out of the participant’s control. As such, daily fantasy sports appear to be a game of chance not otherwise permitted by the laws of California.”

Besides showing support for the DFS sector, WagerWire submitted a response to the “Request for Comments Regarding Attorney General Opinion 23-1001.” In addition to expressing its dedication to DFS competitions, WagerWire urged other companies in California to support the sector.