Daily Fantasy Sports, Skill Or Chance? NJ Lawmakers Debate

TRENTON, N.J. (CBS) - Do daily online fantasy sports need a referee? That's what lawmakers in New Jersey are considering as they debate whether the industry should be regulated as a gambling operation.

A game of chance -- aka "gambling" -- versus one of skill: where does fantasy fall?

"Whether a participant wins or loses depends almost entirely on the amount of time, research, experience, and talent -- otherwise known as skill -- that he or she has relative to the other players in the contest," explains industry lawyer Jeremy Kudon.

He says that need is amplified when it comes to daily and weekly play (as opposed to season-long leagues).

Assemblyman Troy Singleton, Democrat from Burlington County, seems dubious:

"At the end of the day, if Tom Brady breaks his leg, it doesn't matter how skillful you were in drafting Tom Brady."

Lawyers for FanDuel and DraftKings say they're all for regulations that protect people who play, but that forcing daily fantasy to be licensed as gambling operations likely would "suffocate" the industry.

It also could require an amendment to New Jersey's constitution.

Still, this issue is taking a backseat for now, as lawmakers don't want to imperil their chances in federal appeals court ahead of a ruling on allowing sports betting in the state.