Related: Fantasy sports may be regulated in Ohio
Fantasy sports websites operate contests in two ways: no fees and no prizes for the winners or entry fees and cash prizes for the winners. FanDuel and DraftKings — the two biggest operators — retain a percentage of the fees, depending on what kind of contest it is.
House Bill 132 is supported by the Cleveland Indians, Columbus Crew and Cincinnati Reds as well as the Fantasy Sports Trade Association.
Peter Schoenke, chairman of the association, said in testimony on the bill that the NBA, NHL, MLB and MLS are investors in Fanduel or DraftKings. Clarifying Ohio law to state that fantasy sports are a game of skill and legal will help eliminate uncertainty, he said.
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Schoenke estimates that just under 1.9 million Ohioans participate in fantasy sports contests each year.
“States have shown that fantasy sports is an activity that can be regulated to ensure a fair and balanced playing field. Sixteen states have passed laws clarifying that fantasy sports are legal games of skill,” he said in testimony.