Massachusetts Attorney General Proposes New Daily Fantasy Sport Regulations

Massachusetts has introduced new state guidelines that would enforce more stringent rules on daily fantasy sports.

A bill proposed by Massachusetts Attorney General Maura Healey would ban players under 21 from participating in DFS games, halt games involving college sports and ensure more "truthful advertising" from the companies. The ruling would also prohibit professional athletes from playing DFS in their own sports and place a monthly limit on how much a user can deposit.     

“These regulations are a first of their kind for the Daily Fantasy Sports industry, and they focus on protecting minors, ensuring truthful advertising, bringing more transparency to the industry, and leveling the playing field for all consumers,” Healey said in a statement. “This is a first step, but an important step, as we continue to evaluate this new industry and make sure our laws keep up with these evolving technologies.”

The proposal comes amid a widespread push to better regulate—or perhaps even ban outright—daily fantasy sports. Per Joe Drape of the New York Times, New York Attorney General Eric Schneiderman has sought an injunction to require DraftKings and FanDuel to cease operations in the state. On Nov. 17, the attorney general issued Yahoo Sports a subpoena. 

“Daily fantasy sports is neither victimless nor harmless, and it is clear that DraftKings and FanDuel are the leaders of a massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country," Schneiderman said in a statement. "Today we have sent a clear message: not in New York, and not on my watch.” 

DraftKings and FanDuel both maintain they are not gambling websites but games of skill, which makes daily fantasy sports legal. The companies filed suit against Schneiderman to block the ban.

DraftKings released a statement saying it would comply with Healy's new guidelines:

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“The Massachusetts Attorney General has taken a thoughtful and comprehensive approach to the Fantasy Sports Industry.  While we do have some concerns with the draft regulations, we intend to work closely with the Attorney General’s office to ensure we are operating in the best interest of our customers.  We will utilize the next 60 days to share our comments in the hopes of effecting some changes and are firmly committed to continuing to operate in a lawful and transparent manner.  We will immediately begin taking steps to prepare to implement the changes to our product that the Attorney General requires.

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A push for greater transparency comes after news of a DraftKings employee winning $350,000 in a FanDuel competition became public on Oct. 5. An independent investigation found the employee did not use proprietary information in the competition, but the controversy led to a larger examination of the DFS business and its legality.