WASHINGTON, DC — Today, Congressman Frank Pallone, Jr. (D-NJ), Senior Democrat on the House Energy and Commerce Committee, questioned representatives of the Daily Fantasy Sports industry in a Subcommittee on Commerce, Manufacturing and Trade hearing.

Last year, Pallone requested that the Committee hold a hearing to review the legal status of fantasy sports, given the Committee’s jurisdiction over professional sports and gambling and the overwhelming popularity of fantasy sports websites.

Witnesses for the hearing included representatives of the industry and experts in gaming business and law. In his questioning, Pallone pointed out the hypocrisy of the legal status of Daily Fantasy Sports while sports-betting continues to be blocked by the Federal government in states such as New Jersey. He also questioned the industry on its consumer protection policies and its ability to prevent inside trading on sites such as Draft Kings and Fan Duel.

Earlier today, Pallone published an op-ed with Energy and Commerce Chairman Fred Upton (R-MI) on the industry.

“Despite its growing popularity daily fantasy sports are currently operating in a murky legal framework by an industry that is mostly unregulated,” said Pallone in his opening statement.

“It is crucial that consumers know what they are purchasing when they sign up for DFS and that they understand the risk of losing money in the process.”

Pallone, a strong advocate for legalized and regulated professional sports betting and the billions in profits it would bring to New Jersey, highlighted the legality of fantasy sports and the need to examine how participation in fantasy sports differs from gambling, as well as the relationship between professional leagues, teams, and players and the fantasy leagues.

“I must also mention the hypocrisy of those arguing that Daily Fantasy Sports is readily distinguishable from traditional sports betting,” said Pallone.

While quietly applying for and receiving gambling licenses in the United Kingdom, Daily Fantasy operators continue to argue to interested states in the U.S. that—unlike sports betting—it is not gambling. Their reliance on the arbitrary distinction of skill and chance is also unconvincing, especially since both the Department of Justice and the NFL have asserted that sports betting also is a game of skill.

“In New Jersey, voters approved a 2-to-1 referendum in 2011 to allow sports betting at casinos and racetracks. In response, every major professional sports league joined together and sued the state to stop the plan’s implementation and stifle the will of the voters. How can the professional sports leagues oppose sports betting at casinos and racetracks, but support and prosper from the betting that is taking place every day in daily fantasy sports? To date, the leagues and others have not sufficiently explained the difference between fantasy sports, sports betting and other forms of gambling.”

Pallone has long-advocated for the legalization and regulation of sports betting, which would have a significant and positive impact on New Jersey.

He and Congressman Frank LoBiondo (R-NJ) have introduced legislation to expand sports gaming to New Jersey. Through different mechanisms, the bills would be effective in bringing sports gaming, and its associated revenue potentially amounting to billions, to the state.

Last year, Pallone expressed his disappointment with a court decision to deny New Jersey from implementing its sports betting law, and reiterating his commitment to continuing.