DFS suffers fresh blow in US

DFS suffers fresh blow in US

Wednesday, April 6, 2016 Totally Gaming
Alabama declares paid contests illegal

Daily fantasy sports (DFS) has been dealt another blow in the US after Alabama Attorney General Luther Strange declared paid-for competitions as illegal and ordered operators to cease activities in the state by the end of this month.

Reports in the US press say Strange has sent cease-and-desist letters to all DFS companies active in Alabama, instructing them to halt paid-for contests by May 1.

The move comes following a review of the state’s gambling statutes, which say that an activity can qualify as gambling if a player stakes something of value on a contest of chance, even if an element of skill is involved, in order to win a prize.

In a statement, Strange acknowledge that there is a skill involved in fantasy sports, with players creating a roster of real-life athletes based on their knowledge of the sport in question. However, he also noted that DFS players do not have any form of control over the performance of athletes on their roster, nor whether any of their players becomes injured and is forced to miss a game or period of the season.

“As Attorney General, it is my duty to uphold Alabama law, including the laws against illegal gambling,” Strange said. “DFS operators claim that they operate legally under Alabama law; however, paid DFS contests are in fact illegal gambling under Alabama law.”

Alabama becomes the 12th state in the US to declare paid-for DFS contests illegal.

TotallyGaming.com says:

The future of DFS in the US is becoming increasingly unclear. While some states have taken a firm stance over contests and outlawed such activities, others have opted to introduce legislation to legalise DFS. As previously reported by TotallyGaming.com, smaller operators are concerned about registration fees being introduced in certain states where it will be regulated. Meanwhile the major players have spread risk by expanding into new markets, including Europe.

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