State bills to allow fantasy sports could hurt smaller firms
(March 27, 2016) — Smaller companies in the exploding fantasy sports industry say they could be shut out of doing business in some states by legislation that is actually intended to recognize the games’ legality.
Their concern is the ability to pay fees states are charging for the right to offer the games.
Virginia’s governor signed a bill this month that authorizes fantasy contests but requires operators to pay a $50,000 annual registration fee to the state.
On Friday, Indiana’s governor signed a bill charging companies a one-time licensing fee of $50,000 with a $5,000 annual renewal fee.
Other states are considering legislation along the same lines, with a New York state proposal calling for a whopping initial fee of $500,000.
Smaller companies say the costs could be devastating to their business.