Legalized fantasy sports loses bet in House committee

House Bill 929, backed by several top members of House Republican leadership, would define fantasy sports as not gambling under state law. The Lottery Commission would become the state's Gaming Commission, with authority to regulate fantasy games and charge registration fees to online sites that provide the gaming forums.

Sponsors argued that fantasy sports betting is already popular in North Carolina, but it's not currently regulated. Rep. Jason Saine, R-Lincoln, said the bill would give the state regulatory powers to ensure that the games are accurate and fair.

Rep. Pricey Harrison, D-Guilford, attempted unsuccessfully to amend the bill to remove the language that defines fantasy sports as not gambling and create a yearlong study of the issue by the new Gaming Commission. That amendment failed after the bill's sponsors insisted that the betting is already done and should be regulated immediately.

"We're trying to get our arms wrapped around this as quickly as possible," said Rep. Harry Warren, R-Rowan.

Only two members of the public spoke on the bill, both in opposition to it.

John Rustin, president of the North Carolina Family Policy Council, said it would "represent a massive expansion of online gambling in this state." He also disagreed with the argument that fantasy sports would continue unabated with or without regulation, noting that the two largest online vendors, DraftKings and FanDuel, don't take bets from nine states whose attorneys general have officially defined fantasy sports as gambling.

Rev. Mark Creech, executive director of the Christian Action League, went further, comparing gambling to sex trafficking.

"'They say, 'It’s already happening. Therefore we need to regulate and capitalize on the revenue,'" Creech said, "Sex trafficking is already happening. Should we legalize it, too, and capitalize on it?"

Both gambling and sex trafficking, he argued, prey on "the weak and susceptible" for profit.

"Is not the state taking onto itself the role of a pimp?" Creech asked the committee. "Prohibiting [fantasy sports betting] won’t stop all violations. That’s understood. Nevertheless, it will hem it in, and its harms will be minimized."

On the first voice vote, committee Chairman Rep. Ted Davis, R-New Hanover, seemed surprised when the votes against the bill clearly outweighed support for it. Davis called a second voice vote, which was too close to call.

On a show of hands, Davis declared the motion for a favorable report had failed, 12-16, and said the bill will remain in the committee.