Indiana Senate panel OKs daily fantasy sites

The Senate Public Policy Committee voted 8-0 to approve legislation clarifying the legality of the popular websites and setting up a regulatory structure.

“Fantasy sports have become the new national pastime,” said Scott Ward, a lobbyist for the industry.

About 50 million Americans play fantasy sports, including 1 million in Indiana, according to testimony Wednesday.

But a barrage of advertising by FanDuel and DraftKings last year also brought scrutiny about whether the leagues are considered illegal gambling.

Sen. Jon Ford, R-Terre Haute, said Senate Bill 339 provides oversight through a new division of the Indiana Horse Racing Commission and includes consumer protection language such as a prohibition on employees of the companies or athletes from participating. There also would be a third-party audit requirement.

Daily fantasy sports involve players “drafting” real-life athletes and receiving points depending on their performance.

But the sites would not be treated as a gambling operation.