MA may have figured out the right rules for daily fantasy

Massachusetts’ approach is more restrained than that taken by NY state, whose attorney general on Tuesday sought a court injunction to shut down DraftKings and FanDuel, calling the games “plainly illegal”. Washington and Montana are two of only six states that keep out fantasy sports operators such as FanDuel and DraftKings.

Following in the footsteps of several states in the U.S., including NY, MA will soon be reviewing the Daily Fantasy Sports industry.

“I don’t think it’s gambling, but that’s up to the Attorney General in NY”, Johnson said during an interview on “Mornings With Maria”.

Wednesday’s hearing is scheduled for noon ET in front of NY Supreme Court Justice Manuel Mendez.

Although fantasy sports games are among the fastest-growing activities in the country, they are illegal in Washington.

DraftKings hailed the process behind Healey’s measured proposal, which included extensive conversations with both DraftKings and FanDuel, as a model for other states.

In separate statements, FanDuel and Boston-based DraftKings offered qualified support for Healey’s proposals, with FanDuel saying they made “a tremendous amount of sense”, and DraftKings calling them a “thoughtful and comprehensive approach” to fantasy sports.

If the Attorney General can conclude that there is a “material degree” of chance involved with DFS, or that chance plays a significant role in the outcome of the game, courts can rule it illegal by section 225.00 of NY Law. “DraftKings, itself, has been openly offering these contests in NY for nearly four years”.

FanDuel, which is based in NY and which has temporarily ceased operation in the Empire State, also claims it is being treated unfairly. The companies filed suit against Schneiderman to block the ban. NY law even expressly permits New Yorkers to wager on contests of skill in which they personally participate. He argues that daily games incorporate more chance than season-long fantasy leagues, in which random developments cancel each other out over time.

Gambling in the state is prohibited under New York’s constitution.

MoffettNathanson Research says nine TV networks are getting at least 4% of their total September TV advertising dollars from DraftKings and FanDuel.

The companies caught the NY attorney general’s attention with their ad blitzes this year around the start of the National Football League season.

The biggest stakes for the mushrooming fantasy sports industry may be in California, which could hold the largest population of fantasy sports players in the nation.

As the question of daily fantasy’s legality and regulation will likely be left to the states, it’s possible Healey could set the standard.

“We can confirm that a subpoena was issued to Yahoo last week”, the source told AFP.

FanDuel and DraftKings say that the ability for professionals to win consistently shows daily fantasy is a game of skill. “Here, chance plays just as much of a role (if not more) than it does in games like poker and blackjack”, he wrote.

“Who goes first? That’s determined by the flip of a coin”, Boies said.