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Bills
| 3.23.22

Fantasy Football: Should States be Able to Legalize Sports Gambling? (H.R. 416)

Do you support or oppose this bill?

What is H.R. 416?

(Updated March 19, 2019)

This bill would give states a four-year window to enact laws that exempt sports gambling in the form of a lottery or sweepstakes from federal bans on government involvement in sports gaming.


Between January 1, 2015 and January 1, 2019 states could exempt a lottery, sweepstakes, or other betting, gambling, or wagering scheme from the federal ban by passing laws enabling those forms of sports gambling. Currently, federal law prohibits sports gaming from occurring in 46 states.

Argument in favor

Sports gambling is going to occur whether the federal government bans it or not. It is better for states to make their own decision and regulate it than force such activities to Las Vegas or the black market.

Argument opposed

The federal government should allow states to sanction activities that harm the financial well being of their citizens. This includes forms of sports gambling like fantasy football leagues that offer prizes.

Impact

People living in states that would legalize sports gambling, companies that offer sports gambling, states that legalize sports gambling, and the federal government.

Cost of H.R. 416

A CBO cost estimate is unavailable.

Additional Info

In-Depth: There are only four states that took advantage of a 1992 law which gave states a four-year window to legalize sports betting — including Delaware, Montana, Nevada, and Oregon. Of those states, only Delaware and Nevada have casinos or retail sites open to the public for sports gambling.

The lead sponsor of this legislation, Rep. Frank LoBiondo (R-NJ), has also introduced a bill legalizing sports gambling in New Jersey only, but believes this proposal can gain more traction:

“As it is critical that consensus and majority support be garnered to move any legislation through Congress, it would be nearly impossible to pass federal legislation if it is perceived as New Jersey vs the 45 other states. I firmly believe the best legislative strategy to actually accomplishing our shared goal is to give states another opportunity to provide sports-betting within their borders.”

Currently this bill has the bipartisan support of two Democrats and one other Republican who have cosponsored this legislation in the House of Representatives.


Of Note: Sports gambling in the form of fantasy football leagues has received significant media attention after allegations emerged that employees of two companies that offer the leagues had engaged in insider trading — allowing them to unfairly win cash prizes.

Fantasy football leagues also came up during the Republican presidential debate on October 29, 2015 when both Jeb Bush and Chris Christie spoke in favor of state regulation of the leagues.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Chimpanz APe)