DFS Legislation Week In Review
With a couple of notable exceptions, the news has slowed somewhat on the DFS legislative front. In many states, sessions are winding down, and most of this week’s action was focused in two key battleground states that are coming down to the wire.
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
States with bills pending signature by governor: Missouri, Colorado
States were 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
ILLINOIS
What happened: The situation in Springfield continues to be a circus. After a State Senator who voted in favor of a bill to legalize and regulate DFS backtracked and filed a motion to reconsider last week, the bill eventually advanced to the House. But that’s just the prelude to this week’s action. After the bill passed through its first committee, it hit a snag in the House Judiciary Criminal Committee where allegations of improper lobbying on behalf of the fantasy sports industry emerged Rep. Rita Mayfield, who originally co-sponsored the bill, spoke about the issue at the meeting and said she is no longer comfortable voting on the bill after she says a lobbyist proposed donations to the House Black Caucus in exchange for favorable votes. No vote was held in the Thursday meeting.
What it means: The allegations of improper, unethical and possibly illegal lobbying are troubling and could bring the bill down. The House Judiciary Criminal Committee will meet again Sunday, and a vote then is still possible, however. A representative of the DFS lobby has denied any impropriety in the state.
What players need to know: The clock is ticking, as the legislative session adjourns Tuesday. Illinois is one of the most valuable DFS markets and its legality has been contested via an opinion issued by the attorney general in December. If the bill is not passed, DFS’s immediate fate in the state could be decided by the courts this summer.
NEW YORK
What happened: We’re still in wait-and-see mode in the largest DFS market. State Senator John Bonacic has introduced a bill and has said he’s optimistic a bill will be passed before the end of the legislative session next month. Now we await the introduction of the House bill, which author Gary Pretlow has reportedly finished.
What it means: It’s clear that the New York legislators have been putting in time behind the scenes to help clear the path for the bills, but that doesn’t necessarily mean they’ll be unfettered by opposition. Casino interests chimed in on the subject for the first time this week, declaring opposition for legal DFS that is not tied to the brick-and-mortar facilities in New York.
What players need to know: How much of an obstacle the casino industry can be in New York remains to be seen. Legislators have a little more time to work in the state, but the June 16 adjournment date is looming. New York players have been unable to participate in real-money DFS contests since FanDuel and DraftKings agreed to pull out of New York in March.
ALSO OF NOTE
— Yahoo and FantasyDraft are now active in Mississippi after completing the registration process with the state. There’s been no update from FanDuel or DraftKings, which remain inactive in the state. A regulatory bill was passed in Mississippi in April and signed into law earlier this month.
— Bills in Colorado and Missouri are still awaiting the signature of the states’ respective governors. Both are expected to sign, but if they choose to take no action, the bills will automatically become law once the deadlines pass. In both states, vetoes appear unlikely.