General Attorney Calls For Regulation of DFS Industry in Massachusetts
The mega-popular daily fantasy sports titans FanDuel and DraftKings, as well as other smaller DFS companies, are going to be able to keep their doors open to Massachusetts residents. However, the implementation of advertising restrictions and an age limit will take place. Additionally, the state’s attorney general will be setting new rules and disclosure requirements on DFS sites. Here is a look at exactly what is in store for Massachusetts when it comes to DFS gaming for residents of the state.
State Attorney General's Say on DFS
Maura Healey announced last Thursday what she coined an “aggressive” and “first time seen in the nation” plan to regulate the daily fantasy sports industry after her office reviewed the legality of the contests in the state for several weeks. She declared:
“This is an industry that cries out for transparency and robust consumer protection.These are games you carry around with you in your pocket and lose money at the touch of a button.”
What Sort of DFS Regulations Will Become Effective in Massachusets?
Among the long list of rules coming to Massachusetts is:
• A ban on anyone playing who is under the age of 21
• A ban on promoting or advertising DFS contests on college or school campuses
• Professional athletes, as well as anyone connected to the professional sports industry, will be prohibited from entering DFS contests in their sport
• Players will be limited to depositing $1,000 each month on DFS games
• DFS companies must differentiate beginner players with highly-experienced ones and provide beginner games that experienced players cannot enter into
• Contests for college sports will be banned
• DFS websites will not be able to extend credit to players
FanDuel and DraftKing's Opinion on Regulation
Both FanDuel and DraftKings stated that they supported Healey’s decision and proposals. DraftKings called the plans a “thoughtful and comprehensive approach” to DFS and FanDuel said that they “made a tremendous amount of sense.” DraftKings did say. However, they had some ongoing concerns about the proposals, but both mega-companies stated that they would provide feedback on them in the next few weeks. Both are willing to work alongside attorney generals, lawmakers, and regulators to help develop reasonable regulations throughout the nation.
Over the past couple of months, more and more states have started to scrutinize the daily fantasy sports industry. Some have determined that the game should be handled no different than other types of online gambling (i.e., deemed illegal) while others have come to similar conclusions as Massachusetts: that the DFS industry is in dire need of regulation.
Both sites garnered much unwanted attention a few months ago when a scandal arose from a DraftKings employee playing in a FanDuel contest and winning $350,000. Although both companies claim that there was no wrongdoing involved, it opened the eyes of lawmakers to the possibility of whether the type of gameplay is legal.
What do you think? Should the DFS industry see more regulation throughout the nation? Comment below!