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California Gaming Bill Would Exempt Disney's Skillgames

"Millions could be riding on that question as controversy swirls over Skillgames, a planned pay-to-play venture backed by the Walt Disney Co.

"Pending state legislation to crack down on Internet wagering would exempt Skillgames and fantasy sports leagues, angering critics who say the result would be a major expansion of gambling in California.

"…Supporters say Skillgames and fantasy sports leagues are not gambling, however, because prizes would be awarded on the basis of skill or knowledge -- not chance.

"`People are not wagering on these games as they would on craps or roulette,' said Assemblyman Dario Frommer, D-Los Angeles, who is proposing to exempt such ventures from his Internet gambling bill, AB 1229.

"…The general concept of Skillgames is to charge patrons a fee to answer trivia questions, play arcade games or participate in sports fantasy leagues.

"Winners reportedly could receive cash or prizes valued at up to $1 million, although most of the Skillgames prizes are expected to range from $1 to $500.

"…Sports fantasy leagues, currently offered on ESPN's Web site, consist of a competition in which participants draft a make-believe sports team and compete against others for money based on actual player statistics.

"…Cheryl Schmit, co-director of Stand Up for California, a nonprofit advocacy group, regards Skillgames and fantasy sports leagues as gambling but says AB 1229's ban on other forms of Internet wagering is much needed. She hopes a compromise can be reached.

"…Outside American Indian reservations, state law permits only a handful of gambling activities, including the state lottery, horse racing, charitable bingo games and raffles conducted by private nonprofit organizations…"

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