- Associated Press - Tuesday, January 23, 2018

BOSTON (AP) - Massachusetts lawmakers are considering taxing daily fantasy sports operators like Boston’s DraftKings.

State Sen. Eileen Donoghue has introduced legislation making the online games permanently legal and subject to a 15 percent tax. The Lowell Democrat also wants to charge the state Gaming Commission with regulating the industry.

Daily fantasy sports are online contests in which players compete for cash prizes by picking teams of real-life athletes and scoring “fantasy” points.

Donoghue’s proposal builds on the recommendations of a special legislative commission on fantasy sports she co-chaired, she said. Lawmakers in 2016 declared “fantasy contests” legal through July 31, 2018, while that commission developed a permanent legislative solution.

The Fantasy Sports Trade Association remains concerned the proposed application fee would discourage startups and smaller companies from entering the Massachusetts market, said association Chairman Peter Schoenke, who served on the special commission with Donoghue.

Donoghue’s bill calls for a fee equal to either $100,000 or 1.5 percent of a company’s gross revenue.

DraftKings didn’t comment on the proposal but said it’s committed to “common sense” legislation that protects consumers and allows the industry to continue to grow.


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