DFS Legislation Update
A new bill was introduced this week and two more states saw their bills signed into law, but the bulk of attention remains on New York. The state is the largest market in the daily fantasy industry and legislators now have less than a week to push a bill through.
Here’s what you need to know about the ever-changing legal landscape for DFS as we head into the weekend.
Overview
States with bills signed into law: Indiana, Tennessee, Virginia, Mississippi, Colorado, Missouri
States with bills pending signature by governor: None
States where most DFS companies do not operate: Alabama, Arizona, Hawaii, Idaho, Iowa, Louisiana, Montana, Nevada, New York, Texas (DraftKings still active), Washington
State-By-State Updates
NEW YORK
What happened: Bills that would bring DFS back inched forward in the state legislature’s this week. Perhaps the most significant news came when the bills being considered in Assembly and the Senate were reconciled Tuesday, representing a small but necessary step in the process. The Assembly bill also passed through another committee vote—with an encouraging 18-3 margin—on Monday. It has now passed through its first two committees and has one more to go before reaching the floor. The Senate bill is currently awaiting its second committee vote.
What it means: Progress is being made, but time is winding down. Players have been sidelined in New York since FanDuel and DraftKings agreed to exit the state in March after a contentious legal battle with Attorney General Eric Schneiderman, and if no law is passed, the industry’s only recourse in the near term would be through the courts.
What players need to know: The legislative session is set to adjourn June 16, but there’s actually even less time to get a bill passed. Lawmakers won’t reconvene until Tuesday, leaving just three days to push a bill through in both sides of the legislature. It won’t be easy, but there have been encouraging signs. The bills’ authors say they’re optimistic, and the Speaker of the Assembly said this week he’s in favor of the bill, which would place fees and regulations on the industry, while designating DFS as a game of skill, excluding it from the state’s definition of illegal gambling and rendering moot Schneiderman’s opinion that eventually forced FanDuel and DraftKings to flee the state.
PENNSYLVANIA
What happened: A new bill was introduced this week that would legalize and regulate DFS in the state. It comes with fees, taxes and consumer protection measures similar to those introduced elsewhere around the country. See the full bill here. It has been referred to the Gaming Oversight committee, where a vote could be held next week.
What it means: Not much yet. As we’ve seen countless times in recent weeks, the legislative process is a grind, and an unpredictable one at that, but the introduction of legislation that would firm up the legal standing for DFS should be seen as a positive development.
What players need to know: For multiple reasons, the situation in Pennsylvania is unique. A bill broaching the topic of DFS was first introduced over a year ago and would have forced operators to partner with existing casinos in the state. A similar arrangement was also suggested in a report from the state’s gaming control board, which was presented this week. The bill itself doesn’t include such provisions, but it would put the board in charge of overseeing DFS in the state and allow it to institute its own regulations, as well. The board would not, however, have the authority to require additional licensure not specified by the bill.
NEW JERSEY
What happened: A bill that would impose regulations on DFS is now headed for a vote on the Senate floor after passing 9-3 in a committee vote on Monday.
What it means: This one has flown mostly under the radar since being introduced in March. The Assembly version followed in April but hasn’t yet come before a vote in committee. In addition to an affirmative vote in the full chamber for the Senate version, the Assembly bill will have to pass two committees and the full chamber vote before the legislation is passed on to the governor.
What players need to know: The typical oppositional forces have yet to get involved; instead, industry representatives were actually the ones critical of the bill when it was initially introduced. The sticking point at the time was that it didn’t specifically designate DFS as a game of skill. The revised version also makes no mention of skill or chance.
ALSO OF NOTE
- Governors in Colorado and Missouri signed DFS legislation into law Friday, clearing the path for games to remain legal in both states. Regulations contained within the bills are set to go into effect in August.