21st Century Stock Market: A Regulatory Model for Daily Fantasy Sports

Abstract

The popularity of daily fantasy sports contests has risen exponentially as daily fantasy sports providers have raised hundreds of millions of dollars in seed funding from major sport industry and media stakeholders. Amongst this industry rise, concerns over whether the industry’s consumer protection mechanisms are stringent enough have arisen. In response, individual states executed varied approaches to regulating the industry within their borders. Some have imposed complete bans, while few allow the industry to widely operate and others have imposed significant regulations. States’ responses to the daily fantasy sports industry are akin to state legislators’ regulation of the securities industry in the 20th century. This paper analyzes state and federal regulations imposed on the securities industry in the 20th century to provide an argument as to why federal regulation of the daily fantasy sports industry is necessary.