Small Fantasy Sports Businesses Appeal to Congress For Regulatory Protection

Small Fantasy Sports Businesses Appeal to Congress For Regulatory Protection

FOR IMMEDIATE RELEASE:                                                                            CONTACT: Gary Mack

May 11, 2016                                                                                                              312-961-2467

[email protected]


Small Fantasy Sports Businesses Appeal to Congress

For Regulatory Protection

“We are not FanDuel and DraftKings, this is David vs Goliath,

Alex Kaganovsky, Co-Founder of

Small Business of Fantasy Sports Trade Association (SBFSTA)


WASHINGTON -As state legislatures across the country have begun to regulate fantasy sports operators, hundreds of Mom and Pop companies involved in that industry today appealed to Congress to help keep their doors open. At issue are onerous fees and other regulations that effectively push small companies out of business.

In testimony before the House Subcommittee on Commerce, Manufacturing and Trade, executives of the SBFSTA said that actions Congress may undertake would impact the entire fantasy sports industry, which is far more than FanDuel and DraftKings, the two giant companies that dominate the business.

“Small companies have very different needs than large companies and they have different abilities to handle complex regulation,” said Dave Gerczak, owner of the Fantasy Football Players Championship Company. “Traditional season-long fantasy sports which have been around for more than a decade is also a very different business than daily fantasy sports.”

Recently, Virginia and Indiana approved laws calling for $50,000 fees for any fantasy sports operator. New York and other states have proposed even higher licensing fees. Small fantasy companies cannot possibly afford those fees, according to Gerczak.  In order to save small businesses that offer fantasy sports or vendors who provide services to players and companies, Congress and the states must consider fees and regulation commensurate with the size of a company.

“Let’s be honest, $50,000 licensing fees are chump change to companies like DraftKings and FanDuel,” said SBFSTA co-founder Alex Kaganovsky. “Those two companies reported $3 billion in entry gross revenue in 2015, while all of the small sports fantasy operators combined equaled less than 5% of that total.”

The SBFSTA called on Congress to include exemptions for small businesses from high registration and licensing fees and from regulatory burdens such as repetitious audits and game testing requirements.


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  • Michael Nazarek
    commented 2016-05-12 13:12:47 -0400
    I could not have said it better myself – Mike Nazarek,