New Jersey congressman calls for hearings on fantasy sports business

U.S. Rep. Frank Pallone said he formally requested evidence from daily fantasy sites that NFL players are abiding by rules prohibiting their participation in contests with prizes over $250.

Pallone, a democrat in New Jersey's sixth district, last month requested that the Energy and Commerce Commission hold advanced hearings to determine the legal status of daily fantasy sports. The committee has jurisdiction over professional sports gambling.

The NFL is the only major sports league in the United State not to bar its players from fantasy leagues within the sport of football.

"The truth is that we do not know if these participants are being closely monitored because the industry is currently operating within a legal void," Pallone said. "This, once again, reiterates exactly why we need a Congressional hearing to review these daily fantasy sites. We need more information on how these companies are functioning and how they relate to the sports leagues and the players who stand to profit."

Pallone asked DraftKings and FanDuel to produce information on how the companies monitor participants and whether there is proof players and officials are in compliance with league policies.

NFL players and personnel cannot accept prizes valued over $250 in any fantasy football game. Payouts from daily fantasy sites can hit $1 million.

Pallone noted in letters to each company that it has been reported that DraftKings and FanDuel agreed to provide the National Collegiate Athletic Association (NCAA) with information about whether NCAA-connected individuals are participating in their contests.

"To comply with the NCAA request, the NFL's prize limits, and the other leagues' prohibition policies, your company must have a system in place that tracks information about the participants," he wrote.