Players buy-in to daily or weekly games to win pots of money. Democratic Assemblyman Adam Gray says it needs regulation.
"The predictions are that by 2020 there will be over $17 billion in entry fees," Gray says. "And with that kind of money it seemed appropriate that we take a very close look at it to make sure consumers have safeguards in place."
Gray held a hearing at the Capitol with industry and professional players Wednesday.
The companies argue they offer games of skill, rather than illegal gambling. But Nevada and New York recently ordered them to stop operating. Democratic Assembly Marc Levine says California must do the same.
"Betting on the performance of professional athletes is gambling," says Democratic Assemblyman Marc Levine. "Gambling in California is not legal unless expressly permitted by the state."
State Attorney General Kamala Harris has not yet weighed in on the industry’s legality.