The new rules issued on games by the Bay State’s Attorneys follow comparable moves as previously made by the state of Indiana and Virginia, when the announcement was made regarding regulations for the thriving daily fantasy sports industry.
These regulations from Maura Healy, Massachusetts Attorney General, were anticipated for some time already and could have a positive effect and even further assist the push for online poker. The determination of the move to control DFS was to shield Massachusetts consumers who participate daily in the fantasy sports contests for prizes from deceptive and unfair practices and acts that could arise in the gaming process, including safeguarding players from unaffordable losses.
The new rules state that DFS site is not permitted to hold contests on collegiate sport or high school grounds and that participants must be 21 years of age and the new rules have to be adopted by the 1st of July.
Unlike Indiana and Virginia, the Massachusetts legislature did not pass a bill for DFS. Instead the Bay State went via the AG’s office to add some omission on the industry. This means that Massachusetts for now will still lose out on getting licensing and taxing fees from DFS operators.
DraftKings said in a statement that they appreciated the Attorney General and her office’s leadership and their willingness to engage in meaningful dialogue about issues of importance in the industry. They continued that the regulations that was put forth by the Healy, the Attorney General, were tough and that they continue to work and comply with policymakers across the country to make sure that fantasy contests are fair and fun for millions of sports fans who are entertained by them.
In a statement FanDuel shared that they thanked Attorney General Healey for a comprehensive and her deliberate approach to certifying the sustainability of fantasy sports in Massachusetts and protecting the states consumers. Attorney General Healey carefully reviewed and requested comments from the consumer protection advocates of the past 60 years and from the fantasy sports industry to make sensible adjustments to provisions that will in the end benefit the consumers. She shared that although everyone shares the goal of protecting the consumers, everyone also had concerns about the regulations in the same instance and will restrict the ability to introduce new pro-consumer innovations. She added that all will work diligently to guarantee that all is in full compliance and that she hopes to see the regulations evolve over time to allow even further innovation.
For the DFS industry the moves by Massachusetts, Virginia and Indiana are good news and all eyes are turned to New York since it working towards a DFS bill. Both FanDuel and DraftKings agreed last week to stop offering contests for New Yorkers during the advance legislation of Empire State lawmakers. The settlement was only reached after the attorney general of New York said that DFS was illegal last year. There are 19.75 million residents in New York, which represents almost 13 percent of the DraftKings and Fan Duel based on New York’s active users.
Maryland and Mississippi are some of the other states considering action against the DFS sites, Maryland could go the route in which voters will decide for or against the games. The DFS market could increase to $2.5 billion by the year 2020 according to Eilers Research.
