The CEO of daily fantasy sports operator FanDuel has issued a public call for legislators to impose regulation on his industry, provided such oversight is not too onerous and nobody calls it gambling.
In a letter to FanDuel customers, Nigel Eccles said the DFS industry had grown sufficiently large that it needs “strong, common sense, enforceable consumer protection requirements to ensure its continued growth and success.”
Eccles said such protections would include age and location verification, segregation of player funds from the sites’ operating capital, data protection, third-party audits and “safeguards against use of proprietary contest information,” the latter item a reflection of the DraftKings’ data leak controversy that sparked this month’s media feeding frenzy on DFS.
Eccles said some “smart, but tough proposals” were emerging in state legislatures that he believed would serve as “the basis for the sensible regulation of the fantasy sports industry.” Both FanDuel and DraftKings have publicly supported this week’s proposal by Illinois state Rep. Mike Zalewski to require DFS operators to adhere to certain “consumer protections” while sparing them from being labeled as gambling businesses and taxed accordingly, like Pennsylvania has proposed.