Governor Jay Nixon thinks daily fantasy sports should pay up. During his State of the State address last night, he said the industry needs to be regulated in Missouri.

Missouri Governor Jay Nixon. Photo by Bill Greenblatt/UPI

Missouri Governor Jay Nixon. Photo by Bill Greenblatt/UPI

“Let’s work together to protect kids and consumers by reining in the billion-dollar fantasy daily sports industry,” said Nixon. “Let’s get real. This is gambling, kids are playing and it’s completely unregulated. There are lobbyists in this building who want to keep it that way.”

Nixon said daily fantasy sports should be taxed, just like casinos are.

“This industry should follow the law, play by the rules and pay its fair share,” said Nixon.

According to Nixon, taxing it could mean millions of dollars a year in revenue for things like education.

Last month, Illinois Attorney General Lisa Madigan issued an opinion that fantasy sports contests offered by FanDuel and DraftKings “clearly constitute gambling” and are therefore illegal under Illinois law. Fantasy sports websites have been outlawed in other states.

Earlier this month, California lawmakers took a step toward permitting, taxing and regulating the industry. A California Assembly committee approved a bill that would allow fantasy sports websites to operate in the state if they obtain a license and pay an annual regulatory fee.

Website operators would have to undergo a background check and pay taxes on their profits and report player winnings to the state. The winnings would then be taxed. Licensed operators would be responsible for determining that players are eligible adults and that there is no fraud in the games.