DFS State Watch: Monitoring Daily Fantasy Sports Sentiment And Action In Government
Last updated: 10/17 @7:58PM PDT
More and more states are taking a closer look at daily fantasy sports in the wake of the increased scrutiny on the security of data by operators and other issues. Some lawmakers are calling for action or already have bills in the works. And attorneys general have weighed in.
Below, we take a closer look at every state where there has been material reaction from relevant officials regarding daily fantasy sport. This story will be updated as news warrants and as more states consider action. Updates appear at the bottom of each section.
To monitor legislation, see our bill tracker.
Does a DFS site allow play in your state? Check out the permitted states table.
California
Just before recent events, California introduced a bill that seeks to regulate DFS. On the heels of that, the bill’s sponsor, Assemblyman Adam Gray pointed out that he already had a bill in play, and reiterated his call for regulation:
Colorado
The Denver Post started reporting on rumblings in Colorado on Oct. 16. Mostly, governmental officials didn’t want to comment, as the state’s department of revenue and gaming divisionboth said they didn’t have jurisdiction. But the impact of Nevada deeming DFS requires a license reverberated:
The first rumblings from Connecticut came in mid-October, when public officials weighed in briefly. From WFSB TV:
On Oct. 16, Delaware became the latest state to consider the legality of DFS. From Delaware Online:
Florida is one of the hot spots for DFS, as a federal grand jury has been convened there to look into fantasy sports. The targets and scope of that investigation are unknown. In the wake of that, three mid-level operators pulled out of the state, including StarsDraft.
On the state level, there’s also been news. Prior to recent events, the Fantasy Sports Trade Association had hired lobbyists in the state. But the lobbying efforts have picked up, according to the Miami Herald, with 10 lobbyists working for FanDuel and DraftKings, reportedly. Also from the Herald:
Update: 10/15
No new news, necessarily, but implications of the grand jury investigation here.
Update: 10/16
The U.S. Attorney in Tampa reportedly subpoenaed the Fantasy Sports Trade Association.
Illinois
Illinois had a bill addressing DFS previously — called the “Daily Fantasy Sports Regulation Act” — but there has been no movement on that legislation, so far.
One of the known class-action suits has been filed in Illinois.
Update: 10/16
Things got more serious in the short term, as the Illinois Gaming Board said it “plans to seek a legal opinion” about whether DFS operators are violating state law. Story from The Associated Press:
Rep. Alan Morrison previously announced his intention to revive a bill that would allow casinos to offer fantasy sports contests. That was before the news of the past week, however.
A story at the Indianapolis Business Journal quoted several public officials, legal experts and gaming sources. At least one lawmaker took an aggressive stance on DFS:
According to the IBJ, Sara Tait, executive director of the Indiana Gaming Commission, “said she is monitoring developments closely.”
Maryland is one of two states that has actually passed a law legalizing fantasy sports for cash. However, Maryland’s gaming director spoke out and called fantasy sports “a powder keg” (subscription).
Massachusetts
Attorney General Maura Healey said daily fantasy sports are legal in the state, after concluding a review that DraftKings had asked for. It didn’t sound like she planned on pursuing the industry in the wake of the data leak story, according to her comments in the Boston Globe, but she did offer this:
Update: 10/13
After DeLeo’s comments, Senate President Stan Rosenberg said fantasy sports needed to be regulated and taxed. More from MassLive:
The Wall Street Journal reported that the “Massachusetts Attorney General’s office is in talks with both companies over putting in place proper consumer protections, according to a person familiar with the discussions.”
Update 10/16
Healey weighed in again after Nevada’s decision that DFS sites must operate under regulation, but said Nevada’s finding has no impact on Massachusetts, right now. Story here.
Michigan
Before any of the events surrounding the data leak, the Michigan Gaming Control Boardoffered that it believes daily fantasy sports are “illegal under current Michigan law.” That led at least three operators to leave the state.
There is also a bill that simply seeks to legalize real-money fantasy sports (again, this happened before the leak story broke). That, however, appears to be on hold.
Mississippi
The gaming commission in the state reportedly wants to take a closer look at DFS, per The Chicago Tribune.
Nebraska
In the middle of October, Nebraska legislators became interested in DFS. More from the Journal Star:
New York
New York is one of the most proximate threats to the industry. New York Attorney General Eric Schneiderman has opened an inquiry into DraftKings and FanDuel, and he has also called them “totally unregulated gambling venues.”
The sites have until October 15 to respond to a series of questions asked by the AG’s office. He is looking into the companies on consumer protection grounds, in the wake of allegations made via the media.
New York was also the first jurisdiction where a federal class-action lawsuit was filed.
Update: 10/15
LSR has reached out for an update on the inquiry with the AG’s office. We have received no response as of Thursday evening.
Update: 10/16
There are now five class-action lawsuits in the state.
Nevada
The Nevada Gaming Control Board has been undertaking a “legal analysis” of DFS for awhile now. It’s unknown if the results of that will be made public, or when.
Update: 10/15
That didn’t take long. Nevada has issued a statement saying unlicensed operators should stop offering DFS in the state.
By early Friday, all major operators had pulled out of the state.
Update: 10/17
The Fantasy Sports Trade Association announced that it would not be holding its winter meeting in Las Vegas.
Ohio
No rumblings in Ohio yet, but a story did mention the legality in the state:
A bill attempting to regulate fantasy sports that hadn’t seen the light of day since May is being resurrected:
Last updated: 10/17 @7:58PM PDT
More and more states are taking a closer look at daily fantasy sports in the wake of the increased scrutiny on the security of data by operators and other issues. Some lawmakers are calling for action or already have bills in the works. And attorneys general have weighed in.
Below, we take a closer look at every state where there has been material reaction from relevant officials regarding daily fantasy sport. This story will be updated as news warrants and as more states consider action. Updates appear at the bottom of each section.
To monitor legislation, see our bill tracker.
Does a DFS site allow play in your state? Check out the permitted states table.
California
Just before recent events, California introduced a bill that seeks to regulate DFS. On the heels of that, the bill’s sponsor, Assemblyman Adam Gray pointed out that he already had a bill in play, and reiterated his call for regulation:
“Recent events reported by the New York Times have highlighted the need to provide consumer protection to consumers who wager on Daily Fantasy Sports websites, i.e. Fan Dual, Draft Kings and Yahoo,” says Assemblymember Gray. “Daily Fantasy Sports betting is happening in California, whether we like it or not. This is an unregulated industry, whose revenue is in the billions of dollars. All other gaming activities in the State are subject to regulations that ensure a safe environment for gambling.”
The Sacramento Bee penned an editorial calling for regulation.
Colorado
The Denver Post started reporting on rumblings in Colorado on Oct. 16. Mostly, governmental officials didn’t want to comment, as the state’s department of revenue and gaming divisionboth said they didn’t have jurisdiction. But the impact of Nevada deeming DFS requires a license reverberated:
Colorado casinos hope gaming officials here follow Nevada’s lead.
“We do think they should be regulated,” said Lois Rice, executive director of the Colorado Gaming Association, which represents casinos in the state’s three gambling towns, Blackhawk, Central City and Cripple Creek. The association plans to discuss the issue and possibly craft a formal position at a meeting next week.
Connecticut“We do think they should be regulated,” said Lois Rice, executive director of the Colorado Gaming Association, which represents casinos in the state’s three gambling towns, Blackhawk, Central City and Cripple Creek. The association plans to discuss the issue and possibly craft a formal position at a meeting next week.
The first rumblings from Connecticut came in mid-October, when public officials weighed in briefly. From WFSB TV:
Connecticut Attorney General George Jepsen’s office and Chief State’s Attorney Kevin Kane’s office both told Eyewitness News that they are reviewing the websites’ practices.
Delaware
On Oct. 16, Delaware became the latest state to consider the legality of DFS. From Delaware Online:
Delaware Finance Secretary Tom Cook said Friday evening that he decided to look into the legality of the sites under state law after Nevada banned the use. …
“We’ve obviously been following all of the events that have been going on surrounding this,” Cook said. “When Nevada made the first move to shut down the sites, we felt that it was our obligation to certainly understand their reasoning behind it.”
Florida“We’ve obviously been following all of the events that have been going on surrounding this,” Cook said. “When Nevada made the first move to shut down the sites, we felt that it was our obligation to certainly understand their reasoning behind it.”
Florida is one of the hot spots for DFS, as a federal grand jury has been convened there to look into fantasy sports. The targets and scope of that investigation are unknown. In the wake of that, three mid-level operators pulled out of the state, including StarsDraft.
On the state level, there’s also been news. Prior to recent events, the Fantasy Sports Trade Association had hired lobbyists in the state. But the lobbying efforts have picked up, according to the Miami Herald, with 10 lobbyists working for FanDuel and DraftKings, reportedly. Also from the Herald:
While the Fantasy Sports Trade Association is new to Tallahassee, they are already wise to the money game, donating $10,000 each in the last two weeks to four of the biggest players in the state’s discussion on gambling. That group gave checks to political action committees run by House Speaker Steve Crisafulli and the chairman of the House Regulatory Affairs Committee, Jose Felix Diaz, R-Miami. In addition, PACs run by Rep. Matt Gaetz, chairman of the Finance and Tax Committee, and Sen. Jack Latvala, chairman of the Senate Appropriations committee handling economic development issues, also got donations.
And at least one lawmaker appears to want to take a look at the issue. More from the Herald:
“They are promoting a product that looks a lot like sports betting,” said Sen. Rob Bradley, a North Florida Republican and lead negotiator on gambling issues in the Florida Senate.
There were no formal call for hearings or legislation, however.
Update: 10/15
No new news, necessarily, but implications of the grand jury investigation here.
Update: 10/16
The U.S. Attorney in Tampa reportedly subpoenaed the Fantasy Sports Trade Association.
Illinois
Illinois had a bill addressing DFS previously — called the “Daily Fantasy Sports Regulation Act” — but there has been no movement on that legislation, so far.
One of the known class-action suits has been filed in Illinois.
Update: 10/16
Things got more serious in the short term, as the Illinois Gaming Board said it “plans to seek a legal opinion” about whether DFS operators are violating state law. Story from The Associated Press:
Spokesman Gene O’Shea said Friday the board believes sites like DraftKings and FanDuel are illegal in Illinois. He says the board will likely send a letter next week asking Attorney General Lisa Madigan for an opinion because it doesn’t have authority to take action.
Indiana
Rep. Alan Morrison previously announced his intention to revive a bill that would allow casinos to offer fantasy sports contests. That was before the news of the past week, however.
A story at the Indianapolis Business Journal quoted several public officials, legal experts and gaming sources. At least one lawmaker took an aggressive stance on DFS:
“I see their ads everywhere and I say it looks an awful lot like a form of gambling to me,” said Senate Appropriations Chairman Luke Kenley, R-Noblesville.
“I’m surprised someone—the attorney general or the Marion County prosecutor—hasn’t reacted publicly yet,” Kenley said. “I think it’s something we need to look into because it’s something we need to safeguard Indiana citizens against.”
Morrison also said in that story that he didn’t want to be “heavy-handed” with DFS as it exists currently.“I’m surprised someone—the attorney general or the Marion County prosecutor—hasn’t reacted publicly yet,” Kenley said. “I think it’s something we need to look into because it’s something we need to safeguard Indiana citizens against.”
According to the IBJ, Sara Tait, executive director of the Indiana Gaming Commission, “said she is monitoring developments closely.”
“The issues associated with these activities are multi-layered and complicated, with interpretations of both state and federal law in play,” Tait said.
Maryland
Maryland is one of two states that has actually passed a law legalizing fantasy sports for cash. However, Maryland’s gaming director spoke out and called fantasy sports “a powder keg” (subscription).
Massachusetts
Attorney General Maura Healey said daily fantasy sports are legal in the state, after concluding a review that DraftKings had asked for. It didn’t sound like she planned on pursuing the industry in the wake of the data leak story, according to her comments in the Boston Globe, but she did offer this:
“I think that those who play want to be, and expect to be, assured a level playing field,” Healey said. “I think it’s important to me that that is in place.”
House Speaker Robert DeLeo, speaking in a TV interview, spoke on fantasy extensively. He seemed to advocate for taxing DFS operators, saying Massachusetts should “get its fair share.”He was non-committal on the idea of regulation, according to the Lowell Sun:
Asked if there is a role for the Legislature to regulate fantasy sports sites, DeLeo said, “There may be. I can’t answer that.” He said he’s “anxiously awaiting” a report on the topic from Attorney General Maura Healey, who says the sites are not banned under state or federal laws but that she wants to protect consumers who use them.
Massachusetts has also been considering legislation that would allow the lottery to operate DFS.
Update: 10/13
After DeLeo’s comments, Senate President Stan Rosenberg said fantasy sports needed to be regulated and taxed. More from MassLive:
“The way I think about it is more like horse racing than any other thing, because you’re basically evaluating the potential for performance and then you’re placing a wager on it,” Rosenberg, D-Amherst, said in a sit-down with State House reporters on Tuesday.
“Because it’s on the Internet, it can be located anywhere, and all you need is a credit card and computer, or a credit card and a device to get you onto the World Wide Web,” he continued. “So we have to figure out how to do that properly.”
Update: 10/14“Because it’s on the Internet, it can be located anywhere, and all you need is a credit card and computer, or a credit card and a device to get you onto the World Wide Web,” he continued. “So we have to figure out how to do that properly.”
The Wall Street Journal reported that the “Massachusetts Attorney General’s office is in talks with both companies over putting in place proper consumer protections, according to a person familiar with the discussions.”
Update 10/16
Healey weighed in again after Nevada’s decision that DFS sites must operate under regulation, but said Nevada’s finding has no impact on Massachusetts, right now. Story here.
Michigan
Before any of the events surrounding the data leak, the Michigan Gaming Control Boardoffered that it believes daily fantasy sports are “illegal under current Michigan law.” That led at least three operators to leave the state.
There is also a bill that simply seeks to legalize real-money fantasy sports (again, this happened before the leak story broke). That, however, appears to be on hold.
Mississippi
The gaming commission in the state reportedly wants to take a closer look at DFS, per The Chicago Tribune.
Nebraska
In the middle of October, Nebraska legislators became interested in DFS. More from the Journal Star:
State Sen. Tyson Larson of O’Neill, chairman of the Legislature’s General Affairs Committee, says his office is trying to determine whether the sites violate Nebraska’s constitutional ban on most forms of gambling, or whether they are games of skill that need a regulatory framework to ensure they aren’t abused.
The Nebraska Attorney General’s office was also reportedly looking into the legality of DFS.
New York
New York is one of the most proximate threats to the industry. New York Attorney General Eric Schneiderman has opened an inquiry into DraftKings and FanDuel, and he has also called them “totally unregulated gambling venues.”
The sites have until October 15 to respond to a series of questions asked by the AG’s office. He is looking into the companies on consumer protection grounds, in the wake of allegations made via the media.
New York was also the first jurisdiction where a federal class-action lawsuit was filed.
Update: 10/15
LSR has reached out for an update on the inquiry with the AG’s office. We have received no response as of Thursday evening.
Update: 10/16
There are now five class-action lawsuits in the state.
Nevada
The Nevada Gaming Control Board has been undertaking a “legal analysis” of DFS for awhile now. It’s unknown if the results of that will be made public, or when.
Update: 10/15
That didn’t take long. Nevada has issued a statement saying unlicensed operators should stop offering DFS in the state.
By early Friday, all major operators had pulled out of the state.
Update: 10/17
The Fantasy Sports Trade Association announced that it would not be holding its winter meeting in Las Vegas.
Ohio
No rumblings in Ohio yet, but a story did mention the legality in the state:
Under current state law, the Ohio Casino Control Commission has no authority over fantasy sports, spokeswoman Jessica Franks said Friday. The commission oversees casino gaming and skill-based amusement games.
Pennsylvania
A bill attempting to regulate fantasy sports that hadn’t seen the light of day since May is being resurrected:
Rep. George Dunbar said Friday that the measure he is sponsoring would ensure that state regulators scrutinize operations of the now-unregulated companies to protect consumers.
