Fantasy sports have become an incredibly popular thing in recent years. In the midst of the growing popularity of fantasy, various fantasy-sports-related businesses have popped up. This includes businesses offering pay-to-play fantasy sports.
Now, pay-to-play fantasy sports providers can be in something of a complicated legal situation here in America. This is because pay-to-play fantasy sports can be in a gray area legally.
Some states have decided to add clarity on this front. For example, 16 states have opted to formally legalize the for-profit fantasy industry in their borders. There’s a chance Ohio could soon add itself to this list.
A bill is currently under consideration in Ohio which would formally legalize this industry in the state. The bill has already been approved by the state’s house, and is now before the state’s senate.
In addition to officially legalizing the for-profit fantasy sports industry, the bill would also provide for the regulation of this industry in the state. Included among this regulation would be a registration fee for businesses in this industry.
So, if this bill were to pass, it could have major implications for the legal situation of companies involved in pay-to-play fantasy sports or thinking about entering this industry.
Do you think this bill will ultimately be made law?
As this illustrates, the legal framework present for a new industry can end up shifting quite a bit. It can be important for businesses entering a new industry to stay aware of the legal situation for that industry in the state they are operating in, and the legal requirements this situation would expose them to. Ohio business law attorneys can give startups in the state that are in new industries guidance on what regulations are relevant for their business and other key business law matters.
Source: Crain’s Cleveland Business, “Fantasy sports soon could have a new reality in Ohio,” Kevin Kleps, Sept. 24, 2017