Additionally, 12% local revenue share that goes to Cities & Towns and charities, as well as funds for Problem Gambling and the AZ Dept of Gaming.
YES, as long as you are playing with friends, and no third party is making a profit, it’s social gambling. When a commercial third-party is banking the game and making money off of your bets, it’s no longer social gambling and is illegal in Arizona.
What this bill attempts to do is make it legal for out-of-state corporations, currently being investigated for fraud in other states, to provide a house-banked Fantasy Sports betting platform. If that betting platform becomes legal, it triggers what is known as the “poison pill”. This “poison pill” was created to keep well regulated gaming limited in Arizona and share a portion of revenues with Arizona. What the Arizona legislature is considering will END ALL OF THAT for a betting platform that will not have any regulatory oversight, and will not collect any tax revenues, as every dollar bet goes to profit companies outside of Arizona.
For Arizona, it means that Tribes no longer have any limitations on the type of games, number of slot machines, or the size and number of casinos they can operate. Tribes also no longer have to share revenues with the State of Arizona, which currently
averages about $100 million a year. While some may think this is a good thing, it would forever change the nature of gaming in Arizona. In exchange, Arizona would not collect any tax revenues from out-of-state Commercial Fantasy Sports companies.
For Tribes, breaking the poison pill would also likely end “transfer agreements” Tribes have with non-gaming, rural Tribes. The transfer agreements allow Tribes to lease their allotment of gaming machines to metro Tribes in exchange for revenues. These revenues help Tribes remain self-reliant and provide education, healthcare and infrastructure for their people. Programs assisting young people and elders would be tremendously impacted.
No, they would not, and shared revenues from Tribes would end immediately.
Doubtful. Nothing in this proposal allows any oversight for these online gambling platforms.
No. Most states that allow Commercial Fantasy Sports to accept wagers do so out of the lack of regulation, not because of it. In fact, states around the country are waking up to the oversight, regulatory and ethics problems that Commercial Fantasy Sports operators have created. Many are now trying to roll back the clock on these operations. Arizona was an exception because of voter-approved agreements in place between Tribes and the State.
“Our investigation has found that, unlike traditional fantasy sports, daily fantasy sports companies are engaged in illegal gambling under New York law, causing the same kinds of social and economic harms as other forms of illegal gambling, and misleading New York consumers,” said Attorney General Schneiderman. “Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country. Today we have sent a clear message: not in New York, and not on my watch.”
Nevada’s Attorney General finds Fantasy Sports Competition to be Illegal Gambling: (excerpt from 10/16/15 legal memo). “This conclusion—that daily fantasy sports are gambling—is consistent with how operators of certain daily fantasy sports describe themselves. For example, Jason Robins (the owner, co-founder, and CEO of DraftKings) stated that the concept for DraftKings.com was ‘‘almost identical to a casino.’’ Mr. Robins made these comments on Reddit.com, which is an entertainment, social networking, and news website where registered community members can submit content, such as text posts or direct links, making it essentially an online bulletin board system.”
In Vermont, John Treadwell, chief of the Attorney General’s criminal division, urged against passing a bill that would regulate the games and effectively legalize them. “Our concern is what it (the legislation) does is it takes one variety of illegal, for-profit gambling and makes it legal without any consideration for why this particular one is being chosen and others are not,” Treadwell said.
Hawaii Attorney General Doug Chin issued a formal opinion that classifies daily fantasy sports as illegal gambling under state law.
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