Patrick Madamba, Jr. was quoted in the International Business Times article, "Daily Fantasy Sports Debate: Self-Regulatory Panel Faces Doubts Amid Federal, State Probes." Full text can be found in the October 28, 2015, issue, but a synopsis is below.
The fantasy sports industry has created a self-regulatory panel in order to "establish industrywide standards to protect against consumer fraud and audit how companies like FanDuel and DraftKings conduct their business."
Although the newly formed Fantasy Sports Control Agency has been implemented to regulate and create standards, many believe that it will not stop the federal government from investigating some of the business practices of organizations in the industry.
According to Fox Rothschild Counsel member Patrick Madamba, Jr., "I really don't believe that some prosecutor somewhere is going to say 'great, they're regulating themselves now, we don't have to look any further.' They would not be discharging their duties under the law."
By formally regulating fantasy sports betting, consumers may gain confidence in the industry as it did with casino gaming companies in 1978 once it became strictly regulated.
"All of the major gaming companies are listed – they're either New York Stock Exchange companies or Nasdaq companies. It became a legitimate industry," said Madamba. "And as a result of becoming a legitimate industry, it not only had consumer confidence, but it had investors' confidence. It was a result of that strict regulatory scheme that casino gaming has proliferated across the United States."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
