How Will the DFS Controversy Influence iPoker Legislation in the United States?

DraftKingsThe last few weeks have been a nightmare for the Daily Fantasy Sports industry. Data leaks as well as insider trading began a scandal that has resulted in multiple class-action lawsuits and several states challenging the legality of DFS.

If you’re an online poker player, you might be wondering how this could impact iPoker legislation in California and other parts of the United States. Today, we look at how DFS may impact the iPoker industry and how Amaya may actually benefit from recent developments.

DFS Could Distract from iPoker Legislation

All you need to do is look at the Twitter account of various industry experts to realize that the majority of discussion lately has been on DFS. In additions, states have been quick to start speaking out against DFS. Nevada has outright banned DFS and says that the activity must be licensed.

In addition, eight class action lawsuits have been filed against DFS operators. Five are against DraftKings and three against FanDuel. It is likely that these suits will increase and that other states will ban the activity in the near future.

With the recent focus on DFS, it is very possible this will take attention away from online poker in most states that may consider it in 2016. States like California and Pennsylvania will still examine iPoker but the attention given to DFS may take away or even push lawmakers away from other forms of online gambling.

DFS Could Become a Part of Multi-Faceted iGaming Bills

Another direction that some states may choose is to look at the iGaming industry as a whole and include DFS as part of a multi-faceted online gambling bill. This type of bill would seek to legalize DFS, online poker and other forms of iGaming such as slots and blackjack.

Knowing the amount of money that is being wagered on DFS, this could convince lawmakers that a general iGaming bill would be viable for the state. Online poker by itself and or even general iGaming may not bring in enough tax revenue to satisfy state lawmakers.

However, if you include the potential tax revenue from a regulated DFS industry, this could push some states into considering the issue.

Amaya Could Strengthen Their Position Due to Recent Actions

Amaya, Inc. recently made the tough decision to pull DFS out of all but four states in the United States due to questions surrounding legality. Presently, StarsDraft only operates in Kansas, Massachusetts, Maryland and New Jersey. If you live anywhere else, you will not be able to participate in DFS.

When Amaya purchased PokerStars, they pulled out of various countries considered grey areas and this is exactly what they are doing with DFS. Their decision to pull PokerStars out of grey areas globally helped the company to win licensing approval in New Jersey and their choice to pull out of U.S. states could help their cause in other states once iGaming legislation is explored.

Amaya is proving that they are willing to operate in a regulated market and are not willing to operate anywhere that legality of online poker and now DFS is in question. This will reflect positively on the company in the future and help ease concerns about any so-called “tainted assets” owned by the company.

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