Free fantasy sports from heavy-handed laws
Fantasy sports are rapidly becoming a new national pastime with nearly 40 million Americans participating in some form. Whether football, baseball or other sporting events, it's a broadly accepted way to stay connected with friends, family and co-workers.
Nearly every Iowan knows someone who plays fantasy sports or has participated themselves. A 2013 Yahoo! survey revealed that four Iowa cities — Sioux City, Des Moines, Cedar Rapids and Davenport — are in the top 10 nationally of searches per capita for "fantasy football." Estimates indicate nearly 350,000 Iowa residents participate in fantasy sports.
However, what many Iowans do not realize is that every time they participate in a fantasy sports competition for money — regardless of amount — they are breaking the law. What makes this situation more shocking is the federal law says fantasy sports are legal. Moreover, 45 other states consider fantasy sports legal as well. It's time for Iowa to join them.
IOWA POLL: Iowans oppose legalizing fantasy sports prizes
That is why we want to clarify Iowa's fantasy sports law so Iowans can enjoy fantasy sports contests on a season long or daily basis, just like the majority of Americans. Recently, in a broad, bipartisan way, the Senate passed SF166 by a vote of 32 to 16 that allows Iowans to play fantasy sports. The legislation now moves to the House.
Critics of fantasy sports argue that Iowa should redefine fantasy sports as gambling, especially daily contests. This argument is rooted in a simple misunderstanding of daily fantasy sports contests. These daily contests are no different than season-long contests, known as league play, requiring the same skill sets as season-long players under the same rules. The only difference is the length of time required to participate.
The goal of every fantasy sports contest — whether a daily or league play — is to strategically select a team of players that will score the most possible points. It takes a lot of skill to assemble a fantasy team. It is not enough to know the most popular teams and their most recognizable stars — you need to understand scoring systems, the particular strengths of different players and the quality of that week's matchup.
ANOTHER IOWA VIEW: Not so fast on fantasy sports gambling
But do not just take our word for it. In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act, which makes it illegal to gamble on the Internet. That law clearly says fantasy sports are not subject to this federal act. The significance of the decision cannot be overstated. Congress clearly and unequivocally defined fantasy sports as games of skill, not games of chance, and therefore is not considered gambling. Congress hasn't gotten much right these days, but they did get this right. That's why our proposed law, SF166, simply applies that same federal definition for fantasy sports in Iowa.
This legislation will not open the door to gambling activities online, like blackjack, poker or sports betting. It will not even allow all fantasy sports contests. Instead, the legislation is narrowly tailored to fantasy sports that meet specific criteria. Only those contests that are games of skill will be legal under Iowa law.
Most importantly, passing SF166 will give 350,000 Iowa residents peace of mind they can participate in the fantasy sports contests without fear of heavy-handed laws that inhibit economic freedom and competition — bedrock American and Iowa values.
STATE SEN. JEFF DANIELSON is a Cedar Falls Democrat, and STATE REP. JAKE HIGHFILL is a Johnston Republican. Contacts: jeff.danielson @legis.iowa.gov and jake.highfill @legis.iowa.gov