Crackdown on Fantasy Sports Pick’Em Games Continues
More States Are Prohibiting Player Vs House Fantasy Wagering
It’s been a rough stretch for daily fantasy sports operators offering pick’em style contests. More and more states are telling those DFS operators to pack up and take their business elsewhere. Missouri looks to be the latest state to engage in the crackdown on fantasy sports pick’em games.
Pick’em games are similar to player prop bet parlays, which is the problem for the daily fantasy sports operators. They resemble player prop parlays a little too much, especially since the betting involves the DFS player against the house.
The state sent cease-and-desist letters to operators offering the pick’em games, which do violate the Department of Public Safety rules on fantasy sports.
The Missouri Code of State Regulations states, “No winning outcomes are based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event.”
Each leg of a pick’em entry is determined by the stats of one player, which is prohibited under Missouri law.
Colorado has been working towards banning pick’em games since last year and could be close to making a change in the books. The Colorado Division of Gaming has held workshops to discuss the ban on games.
One specific rule change states, “Fantasy contests shall include contests where patrons compete against other patrons. Contests that include parlay-style wagers that are stacked wagers on single athletes against fantasy contest providers shall be prohibited.”
American Gaming Association Sides With States
The American Gaming Association supports the states involved in the crackdown on fantasy sports pick’em games. At its State of the Industry meeting last month, the AGA said states need to be aware of the difference between fantasy sports and sports betting.
“It’s not our role to make those determinations but we continue to encourage regulators to be vigilant to ensure DFS products don’t cross the line into sports betting,” said Chris Cylke, AGA senior vice president of government relations.
Companies that allow you to bet sports online often pay higher taxes on revenue than fantasy companies. Cylke said that’s an incentive for fantasy companies to try and blur the lines. The age requirement to play fantasy sports and the one for those who bet on sports online is also different in some states.
Many States Have Already Banned Pick’Em Games
The crackdown on fantasy sports pick’em games is not new. Missouri or Colorado would simply join a number of states that have already banned pick’em games. Michigan, Wyoming, Florida and New York are among them. Each state has its own reason for banning the games, but money is typically at the top of the list.
The Florida compact with the Seminole Tribe gives the Tribe exclusive right to sports betting. Considering the state is going to take in billions of dollars from the compact, it has a vested interest to shut those games down.
Hard Rock International chairman Jim Allen said pick’em games are plainly illegal in Florida.
“The compact allows for the existing scope of fantasy to not be an exclusion or a default,” he said. “So if DraftKings and FanDuel continue to do what they’re doing, we’re fine with that. So that’s category one. We have no issue with that whatsoever. But certainly what Betr and Underdog and others like them are doing is flat-out illegal. There is no way around it.”
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