INDIANAPOLIS — A bill regulating online daily fantasy sites in Indiana has been changed to make the policing of the sites similar to gambling, while still maintaining that daily fantasy games are skill-based.
Senate Bill 339, authored by Sen. Jon Ford, R-Terre Haute, cleared second reading in the Indiana House on Wednesday and will be up for final passage Thursday.
The bill has undergone some significant changes since it passed out of the Senate. The Indiana Gaming Commission now has jurisdiction over daily fantasy sports sites instead of the Horse Racing Division, and the fee to register a fantasy site in Indiana has increased significantly from $5,000 to $50,000. There will also be an annual fee of $5,000 for every site.
The House also amended the bill to allow the fantasy sites to withhold winnings from participants who are delinquent in child support payments — language very similar to how winnings at a casinos are handled.
On Wednesday, the House also included amendments prohibiting daily fantasy sites from targeting minors with advertising, among other changes.
The bill’s House sponsor, Rep. Alan Morrison, R-Terre Haute, said the amendment relating to advertising will help make sure minors aren’t tempted into playing.
If the bill ispassed, only residents older than 18 will be allowed to play.
Rep. Terri Austin, D-Anderson, included an amendment asking for a summer study committee to look at the possibility of implementing income taxation on daily fantasy sites.
As the bill is currently written, daily sites wouldn’t have to pay any income tax on the money they make.
“This is an ongoing industry. My guess is, if you’re like me, you’ve never even heard of daily paid fantasy sports until you saw advertisements on TV,” Austin said.
“As this continues to evolve we want to make sure we include any additional regulations that could be necessary.”
Both amendments were approved. The bill, if passed, would likely go to a conference committee to discuss all the House changes.