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Pallone Calls on DraftKings, FanDuel to Disclose Participant Tracking Practices

Oct 22, 2015
Press Release
Ranking Member Demands Transparency Regarding Enforcement of NFL’s $250 Prize Limits

WASHINGTON, DC — Today, Energy and Commerce Ranking Member Frank Pallone, Jr. (D-NJ) sent letters to the daily fantasy sites DraftKings and FanDuel requesting information on how the companies monitor their participants so that sports leagues can ensure their players and officials are in compliance with league policies.  

The National Football League (NFL) is the only major U.S. sports league that has not barred its athletes from participating in fantasy games within its sport.  However, it is reported that NFL players and personnel also cannot accept prizes valued over $250 in any fantasy football game, even though payouts from daily fantasy sites can exceed that limit. 

Pallone noted in the letters that it has been reported that DraftKings and FanDuel have agreed to provide the National Collegiate Athletic Association (NCAA) with information about whether NCAA-connected individuals are participating in their contests.  “To comply with the NCAA request, the NFL’s prize limits, and the other leagues’ prohibition policies, your company must have a system in place that tracks information about the participants,” the Ranking Member wrote.  He has requested that the companies provide the Committee with detailed information on how the sites inform the sports leagues about participation so the leagues can enforce their internal policies.

“The truth is that we do not know if these participants are being closely monitored because the industry is currently operating within a legal void,” said Ranking Member Frank Pallone, Jr. (D-NJ). “This, once again, reiterates exactly why we need a Congressional hearing to review these daily fantasy sites.  We need more information on how these companies are functioning and how they relate to the sports leagues and the players who stand to profit.”

Last month, Ranking Member Pallone requested that the Committee hold a hearing to review the legal status of daily fantasy sports, given the Committee’s jurisdiction over professional sports and gambling, as well as the overwhelming popularity of fantasy sports websites.

Follow these links for the full text of the letters to DraftKings and FanDuel.