Congress to hold hearing on fantasy sports

A congressional panel will hold a long-awaited hearing on the legal status of daily fantasy sports next month.

A House Energy and Commerce Committee spokeswoman said the Commerce, Manufacturing, and Trade subcommittee would hold the hearing on May 11.

{mosads}Lawmakers will consider the legal status of the games, which have gained popularity in recent years, as well as other types of online betting. That will include examining the need for consumer protections, according to the spokeswoman.

They will also consider the federal government’s role in regulating daily fantasy sports, which have invited scrutiny among state-level policymakers.

Information about who will testify at the hearing was not available Thursday.

The hearing was first reported by ESPN.

Unlike traditional fantasy sports — which take place over the course of a season — websites now allow users to draft virtual teams of real players on a weekly basis. The games have taken off, with the websites soaring in value last year.

But critics say the services are simply illegal sports gambling under a different name. The websites, though, say they offer games of skill, rather than chance.

The announcement comes months after full committee ranking member Rep. Frank Pallone (D-N.J.) asked Chairman Fred Upton (R-Mich.) to hold hearings on the status of daily fantasy sports and popular websites like FanDuel and DraftKings. He was particularly interested in the links between the websites and professional sports leagues that have sued to block sports betting in his home state.

Upton has always been open to the idea, telling The Hill in September, “This is an issue that we ought to take a look at.”

Since then, however, the debate over daily fantasy sports has intensified at the state level. Several state attorneys general have investigated the websites, and lawmakers in statehouses around the country have started to legislate on the issue.