DraftKings, FanDuel criticized for skipping hearing

Lawmakers on Wednesday morning expressed disappointment that the daily fantasy sports operators DraftKings and FanDuel skipped a hearing on their industry.

House Energy and Commerce Committee ranking member Rep. Frank Pallone Jr. (D-N.J.) said he was not pleased that the two major operators in the daily fantasy space had opted not to testify. 

{mosads}“While I’m disappointed that some of the real actors in this space, like FanDuel and DraftKings, refused to participate today, I still believe that this hearing will be a good beginning to our efforts to level the playing field between daily fantasy sports, traditional sports betting and gaming,” he said.

The ranking member of the subcommittee echoed Pallone.

“I’m disappointed that the companies most central to this discussion are not here today to answer these questions,” said Rep. Jan Schakowsky (D-Ill.).

The comments came at the top of the first-ever hearing on daily fantasy sports, which allow players to draft virtual teams of real-life players on a daily or weekly basis for cash prizes. The industry is being represented before the panel by the leaders of two trade associations.

“We greatly respect the committee’s desire to learn more about fantasy sports,” said FanDuel in a statement earlier this week. “FanDuel is a member of the Fantasy Sports Trade Association, a representative of which has offered to testify at the hearing and can comprehensively answer any questions about our industry.”

Critics, including Pallone, say that the daily fantasy games constitute illegal gaming. The companies counter that they offer games of skill, rather than chance, and therefore shouldn’t be subject to gambling regulations.

State regulators and lawmakers have spent recent months developing new rules for the industry. Some states have legalized and regulated the games, while others have restricted access to the services.