Prepared Written Statement of John T. Holden & Ryan M. Rodenberg for the Massachusetts Special Legislative Commission on Online Gaming, Fantasy Sports Gaming and Daily Fantasy Sports

10 Pages Posted: 1 May 2017

See all articles by John T. Holden

John T. Holden

Oklahoma State University

Ryan M. Rodenberg

Florida State University - College of Education; Florida State University - College of Law

Date Written: May 2, 2017

Abstract

Online gaming has existed in some form for slightly more than 20 years. The growth and popularity of online gaming can be partially credited to three important events:

1) in 1995, Microgaming was the first to pioneer and disseminate online gaming software;

2) software was introduced that allowed for the secure transfer of funds over the internet; and

3) the acceptance of a wager online by InterCasino, which was based in Antigua.

Shortly after the emergence of online gaming sites abroad, Congress began to express concern over Americans accessing virtual casinos and sportsbooks. Early congressional concerns centered on underage access, pervasiveness of illicit material, anonymity, and the integrity of online gambling operators. Many of these concerns persist today. These issues, in addition to concerns about the integrity surrounding real-world sporting events and video game competitions (i.e. esports), should be at the forefront of the minds of state and federal legislators when developing new gaming legislation.

The rise of daily fantasy sports (“DFS”) and traditional fantasy sports has demonstrated that many Americans have an interest in some forms of sports gambling. Interest in fantasy sports is dwarfed by the popularity of other forms of betting, as evidenced by the estimated $10.4 billion wagered on single events like the NCAA Men’s Basketball tournament and $4.7 billion wagered on the 2017 Super Bowl. Americans are already betting on sports. Many are betting on sports through DFS contests, others are betting at Nevada sportsbooks, some are betting with neighborhood bookies, but the vast majority are betting online in a grey market. Efforts to stop or curb online sports gambling have failed. There is a need to develop a more effective and efficient plan to implement a regulatory system that protects customers, and operators.

Within this statement we address four important considerations for the regulation of DFS and online gaming moving forward:

1) federal law;

2) state law;

3) virtual currencies; and

4) consumer protections.

Keywords: online gaming, esports, esports gaming, daily fantasy sports

JEL Classification: K00, K10, K11, K19, K20, K23, K29, K30, K39, K40, K49, L50, L59, L80, L83, L89, O34

Suggested Citation

Holden, John and Rodenberg, Ryan M., Prepared Written Statement of John T. Holden & Ryan M. Rodenberg for the Massachusetts Special Legislative Commission on Online Gaming, Fantasy Sports Gaming and Daily Fantasy Sports (May 2, 2017). Available at SSRN: https://ssrn.com/abstract=2961029 or http://dx.doi.org/10.2139/ssrn.2961029

John Holden (Contact Author)

Oklahoma State University ( email )

201 Business Building
Stillwater, OK 74078-0555
United States

Ryan M. Rodenberg

Florida State University - College of Education ( email )

Tully Gym 1002
1114 W. Call Street
Tallahassee, FL 32306-4450
United States
850-645-9535 (Phone)
850-644-0974 (Fax)

HOME PAGE: http://education.fsu.edu/faculty-and-staff/dr-ryan-rodenberg

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States
850-645-9535 (Phone)
850-644-0974 (Fax)

HOME PAGE: http://education.fsu.edu/faculty-and-staff/dr-ryan-rodenberg

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