Fantasy leaders plead in N. J.

Making a case they hope will resonate with states across the nation, representatives of the fantasy sports industry told New Jersey lawmakers Monday that regulators should not treat them the same way as casinos because success in their industry relies more on skill than on chance. Their testimony to an Assembly committee was clearly aimed beyond the confines of the state: New Jersey’s gambling regulations are considered the strictest in the nation, and a favorable determination could clear the way for daily fantasy sports in much of the rest of the country as regulators look to New Jersey for guidance. Last month, Nevada required fantasy sports companies to obtain a gambling license, and several states including, Pennsylvania, Massachusetts, New York and Georgia, have considered enacting their own rules. New Jersey officials, backed by a Monmouth University legal expert, said at the hearing they may have to change the state’s Constitution if the state deems daily fantasy sports to be gambling, legally defined as games of chance. “It’s a form of entertainment, not gambling,” said Jeremy Kudon, who represents DraftKings, FanDuel and the Fantasy Sports Trade Association. “Fantasy sports is a game of skill, not a game of chance. You need to understand the skills of different players. It depends almost entirely on the amount of time, research and talent — otherwise known as skill. Chance is not a material effect in the contest.” Several lawmakers were clearly skeptical of such claims. “It is clear that chance is a material factor into the outcome,” Assemblyman Troy Singleton said. “I know a ton of people who are skilled in drafting. But at the end of the day, if Tom Brady breaks his leg, it doesn’t matter how skillful you were in drafting Tom Brady. I’ve lost to my wife a number of times in daily fantasy sports, and I know she doesn’t have as much skill.”