State seeks to regulate fantasy sports operators – WRAL.com
Raleigh, N.C. — The boom in fantasy sports shows no signs of abating, so North Carolina lawmakers want to put some regulations on the books to ensure consumers are protected.
House Bill 279, which was filed Wednesday, would require companies that operate fantasy sports sites that require money up front and pay out cash prizes to register with the Secretary of State’s Office.
The sites would have to submit business audits to show regulators that their contests aren’t rigged, disclose the maximum number of entries any single player can submit to any contest and comply with requests to bar individuals from playing in contests in the future. Operators would have to pay a registration fee based on their gross profits every five years.
Rep. Duane Hall, D-Wake, said that, while fantasy leagues are incredibly popular, they’re not all on the level.
“It’s an attempt to set up a commission that sets up some rules and regulations,” Hall said of his bill. “There are some bad actors, and this will give us a chance to regulate that and get them out of the system.”
At least eight states have already passed similar laws to provide some oversight of the industry.
North Carolina’s measure wouldn’t stop anyone from offering fantasy sports, and it wouldn’t apply to players or commissioners, just to the companies that run the games.
Operators that don’t follow the rules would face fines and the possible suspension or revocation of their registration.