And fewer deaths. Its ok to ask for it. Weve got to make sure they know where to get it. President obama theres a good chance we know someone who has or who is. P obama and i just had a powerful conversation about opioid abuse. You can catch it on mtv. Call 1800662help. President obama thanks, everybody. And thanks macklemore. Im dan sullivan and im proud to represent the great state of alaska. Today i want to talk to you about the economy. One of the most kit cal issue facing our country and about the lost decade of Economic Growth under the obama administration. A few weeks ago it was announced that americas Gross Domestic Product grew at only one half of 1 during First Quarter of 2016. Gross domestic product san important indicator about the health of our economy. It measures progress, the absence of the American Dream. 5 g. D. P. Growth is a reminder of what we already know. Our economy is stagnant. The American Dream has mca mirage of dreams for the average american family. The annual g. D. P. Growth is nearly 4 . Under obama its been 1 . We can do so much better for america. But president obama tells us differently. He lowers expectations by calling his very weak economic record the new normal. His s even taking about Administration Economic record in a recent speech he recently said that we are better off today than we were seven years ago. He tells you anybody who tells you differently isnt telling the truth. I hate to tell the president this but even former clinton said this about the obama economy. Millions and millions and millions of people look at the pretty picture of America President obama has painted and they cant find themselves in it. Its not hard to see why they they cant find themselves in president obamas pretty picture. During nearly eight years of the obama administration, the number of americans participating in the labor force is now at its lowest rate since 1978. People are giving up looking for a job. More americans have fall sboon poverty. Family paychecks have declined and the number of people on food stamps have skyrocketed by 40 all during o bottoma years. And the percentage of americans who own homes, a marker of the promise of the American Dream down 5. 2 . And more and more americans believe that we are on the wrong track and that their kids will not be as well off as they are today. The d. N. A. Of america is based on the promise of progress. But that is losing out to president obamas surrender and his new normal economy. Something is terribly wrong in our country when a leading democrat recently bragged that were going to put a lot of coal miners and a lot of Coal Companies out of business. But it doesnt have to be this way. Strong Economic Growth made the United States the greatest country on earth. We have a moral imperative to recognize that we have experienced a lost decade of Economic Growth and opportunity and we have to change this. We have a moral imperative to recognize what pervasive poverty does towards citizens. It creates holes in the social fabric that holds using to. And how and when our citizens falls through the holes, a piece of us goes with them. Because even though we are individuals, we are all of this together as americans. We have a moral imperative to grow our economy again and create opportunities for middleclass families. We are the United States of america. Our economy and workers have been the envy of the world for decades. The Economic Future for our children can be limitless if we have a federal government that is a partner in opportunity not the obstacle that it is today. But in order to do all of this, were going to need a change in washington, a change that doesnt settle for the new normal economy. We can, we will and we must reach our full economic potential as americans. Thank you. Tomorrow president obama give us the commencement speech to the graduating class of rutgers university. Our live coverage begins at 2 50 p. M. Eastern on cspan. Congratulations to the class of 2016. Today is your day of celebration and youve earned it. The voices crying for peace and light because your choices will make all the difference to you and to all of us. Dont be afraid to take on cases or new jobs or a new issue that really stretches your boundaries. Summer abroad and internment and the spector of living in your parents basement is not likely to be your greatest concern. Throughout this month, watch commencement speeches to the class of 2016 in spare entirety from colleges and universities ound the country by business cspan. Politicians on they discussed legal issues, Consumer Protections affecting the Fantasy Sports business. This is just under two hours. I would say to you good morning and welcome to our hearing on daily fantasy sport. At the out set, i would like to thank the Ranking Member of the full president representative polome for his letter requesting his hearing. The panel of witnesses here today will discuss the issues facing daily Fantasy Sports, the industry as well as Consumer Protection features that are available in the marketplace there. Have been headlockings, there has been advertisements and over the last year weve seen the introduction of these contests to fans. Some of these contests can be played for pennies while others are for substantial ams of money. Of like the proliferation mobile apps like netflix words with friends and candy crush, theyve also supported the growth of the Fantasy Sports contests. Between 1994 and 2003 the number of Fantasy Sports players increased from around two million players to 15 million players in 2015 almost 16 Million People played fantasy sport. As fun and easy as the games are advertised to be, the issues involved are more complicated than they might first appear. This hearing is an opportunity for the stakeholders to discuss the many aspects of this complicated issue. Consumer access is a critical component of this conversation and the critical component that this committee does day in and day out. Not only do consumers have to understand the risk and the integrity of the game depends upon consumers getting what they are paying for. There has been a significant information. From the state that have required the daily fantasy sport place to meet Online Gambling requirement to the states that ave passed it explicitly legalizing it. It is critical what impact their actions have on interstate commerce. Consistently during this term of the subcommittee, i have focused on the struggles that Small Businesses face in the regulatory environment. I believe that Small Businesses are vital to our economy and understanding how they fit into this industry that is reportedly dominated by a few large actors is a critical piece of this puzzle. Once again thank you for our witnesses for participating and i would yield back my tife and recognize ms. Chekowsky. Thank you, chairman burgess for holding this hearing on Fantasy Sports. Todays hearing comes down to one question. What should be the future of this multibillion dollar gaming industry . Fantasy sports game competing if tasks by picking fantasy teams of real sports players have taken off in recent years. And according to Fantasy Sports trade association 56. 8 Million People in the United States and canada participated in some form of Fantasy Sports in 2015. While this includes traditional fantasy that expanse the entire football season or baseball season, rapidly share of funding goes to daily Fantasy Sports. Between 2012 and 2015, daily fantasy grew from less than 10 of less of Fantasy Sports spending to now more than half. And there is a big money in this industry. Daily fantasy companies generate 3. 7 billion. When we talk about the daily fantasy industry, were mainly talking about two Companies Draft kings and draft duel represent 95 of the fantasy market. I would note that neither of those companies are testifying today neither will the sports leagues and teams that have partnered with these sights. Daily fantasy has gone governmenten big fast. How should we think of daily fantasy . Companies that operate these websites daily fantasy is a skill. You have to pick players to be a part of your fantasy team. You to be very good at that. I know i wouldnt. Some skill is at its core involves betting on sports. Namath outh put he said do you have to pay noig play . And do they win something . Ts gambling, unquote. Several people have come up with the same conclusion. The illstate legislator is nsidering to make it a taxed form under the illinois gaming board. It almost seems like an accident that the daily fantasy sites are allowed to exist in the first place. It is illegal under the sports protection act and the unlawful internal internet and the un lawful internet enforcement act generally prohibited online gamble. Ugia has a protection for Fantasy Sports. But keep in mind when it passed, it was almost all season long fantasy not the Fantasy Sports that were dealing with today. Even if they claim to be legal under the letter of the law, that doesnt seem like the lawmakers intent. Former congressman jim leech said last year that he had no glad the fantasy exception would call. In todays calm is sheer shuts pa for gambling. As long as it seems ambiguous the legality will be determined largely at the state level. A ly Gambling Companies have legal obligation. They need to take robust steps to prevent use by minors or those struggling will gambling a addiction. Should it be allowed . Several states have decided the answer is no. And if betting through daily fantasy is going to take place, what regulations need to be in place to protect consumeerers. Im disappointed that the companies most central are not here today to thans question that said, i welcome our witnesses and look forward to hearing your perspectives on this industry. And i yield back. The gentlelady recognizes mr. Upton of michigan. Five minutes for opening statement. So today were going to hear from stakeholders about the daily Fantasy Sports industry that indeed has attract sod much attention and excitement over the last couple of years. Most folks exposure to Fantasy Sports consists of a group of friends and coworks getting together for a season long pool. Its a fun way to bring people together. And even our democrats and republican are some of our favorite famous past time. But what weve seen is an explosive growth of daily Fantasy Sports. About 60 million folks are playing and a reported 14 million are playing daily Fantasy Sports with sometimes millions of dollars at stake. As we explore the currentland land kate and the new innovations that they over for fans, Consumer Protections have to be in place for players on the website. Its clear that adult players deserve a fair game and clear rules. I look forward to hearing from the witnesses about what internal controls are in place to insure game integrity on Fantasy Sports websites particularly if different operators use different controls. Also interested to learn at the selfregulatory activities has put in place and the technological tools available in the market to implement consumer marks including age limits and geo fencing. We are looking at these issues which is going to help keep it warranted or not. So my state michigan, theres a expressly legalize daily Fantasy Sports but theres a patchwork and contradictory state law has the potential to negatively harm further growth and innovation in the process. Thank you for being here today. I look forward to your. The yield back. The gentleman yields back. Mr. Polome for Opening Statements. Thank you, mr. Chairman. Daily Fantasy Sports has become an integral part of the game. What started as small betting pools among friends is now a sophisticated Online Platform where millions of dollars are exchanged. Entry fees for range from a few cents to several thousands dollars and the family sports operate tors have posted revenues of 1 million. Casual fans and die hards have embraced daily Fantasy Sports to enter wact the games they enjoy and the leagues have taken notice in the past two years major league baseball, the nba, the nhl and Major League Soccer have each purchased stakes in daily fantasy sport operators. Individual teams have formed lucrative partnerships including these oil uniform and teams know and watch more games than the average fan and will watch a onesided offense if a players could improve their stats. Despite its growing popularity daily Fantasy Sports are currently operating in a murkry Legal Framework that is mostly unregulated. Its important for them to know that they understand the risk of losing money in the process. For example there are reports that 90 of payouts are won by just 1 of winners. With the allegation of Insider Trading at two million fantly sports operators the potential for harm is real. How the will explore bring transparency to the industry. I should mention the hypocrisy of those arguing that the sports are distinguishable while applying for and receiving gambling licenses in the united kingdom. But unlike Sports Betting daily Fantasy Sports is not gambling. They rely on skill and chance as unconvincing. Especially as theyve said that its a sport of skill. They are reaped huge profits with the operators. At the same time most remain oner posed to Sports Betting. And orsr organize crime if it were legalized. Yet an estimated 400 billion is spent on sports begget. Functioning exclusively through organized crime. In new jersey voters approved the 21 ref rendemum 2011 to allow Sports Betting at casinos and racetracks in response every Major Sports League sued the state to stop the plans implementation and stifle the year of the voters. Whats taking place every single day. They have no explained the differences between Fantasy Sports, Sports Betting appear other kind of landing. I look forward to hearing from you on this topic. Im t to tell you that disapointed that some of the relevant actors refuse to participate today, i still believe that this hear willing be a good beginning to level the Playing Field between daily traditional s, Sports Gaming. This concludes the Opening Statements. The chair would like to remind members, that all members statements will remain part of he record. Ms. Diaz is monitoring to make sure that we behave ourselves. We want to thank our witnesses for taking their time to testify before the subcommittee. Todays witnesses will have the opportunity to summarize their Opening Statements followed by a round of questions for members. Our Witness Panel for todays hearing includes mr. Peter chenky from roto wire. The General Council and secretary at mgm international. Mr. Drewbaker fact si sports sose Fantasy Sports association. Within their didnt of sports management. Wednesday i beg your pardon, the chief executive officer at Genius Sports groufment ms. Lindsay slater Operation Manager at good eveningo at geo comply. Mr. Kurt ege, are t. Professor of law at Chapman University fowlers school of law. We do appreciate all of you being here. And we begin our panel with mr. Chenky and you are recognized for your opening five minutes. Thank you. Members of the subcommittee. Thank you for the opportunity to testify today. Sorry. Hairman burgess. Ill try to work through it. Chairman burgess and member oves the subcommittee, thank you for the opportunity to testify before you today. My name is peter chenky and im testifying as chairman of the Fantasy Sports trade association. They have over 300 members including espn, cbs, yahoo , nbc and fox sports. Content and data providers row inc. Rinders and stats Fantasy Sports have become a new National Past time with over 50 million americans participating in some form of Fantasy Sports last year. Americans enjoy it as a hobby and as a form of entertainment that gives them an enhanc