PrizePicks and Underdog Fantasy have emerged as the leaders in the world of Daily Fantasy Sports, primarily due to their popularity with new contest offerings that closely mirror sportsbook player prop bets.
The Wyoming Gaming Commission has become aware that your business offers gambling on sporting events to Wyoming residents. Specifically, your business purports to offer fantasy sports contests but, in reality, the offering appears to fall under the exact definition of “sports wagering” as defined in Wyo. Stat. Ann. § 9-24-101(a)(xii). This offering may violate Wyoming’s gambling laws found inWyo. Stat. Ann. §§ 6-7-101 through -104 and § 9-24-101 through -106; however, these statutes are unclear regarding whether fantasy sports itself constitutes wagering and/or if it should be treated differently from other forms of gambling such as betting on outcomes or outcomes based on player performance. Thus, this offering may also violate WGC’s Online Sports Wagering Rules , Chapter 1 through 9 .
The sports pick ’em games have come under scrutiny by the New York State Attorney General’s office and other competitor sites like FanDuel and DraftKings.
Last week, Underdog Fantasy General Counsel Nicholas G. Green talked to SBC about competitors who complain about him.
Some states are considering banning the “pick ’em” contests that some DFS sites offer. If such a ban were to go into effect, the sites might choose to stop offering these contests or pull out completely.
Underdog Fantasy does not operate in states that do not operate under fantasy sports legislation, such as Connecticut, Delaware, Hawaii, Idaho, Iowa, Nevada, Louisiana, Montana and Washington.
Underdog, a popular fantasy sports company, has left Michigan after the state created licensing requirements for DFS operators. The company opposes a proposed rule that would prohibit fantasy contests that have the effect of mimicking proposition selection.
Michigan has made it especially difficult for operators of online gambling websites to operate within the state. It is one of only a handful of states that have legalized both sports betting and online gambling.
Last week, Michigan Attorney General Bill Schuette announced that he had forced one online casino out of the state.
Golden Hearts Games was investigated by state gaming regulators in August 2021 and found to be operating illegally. The company had failed to obtain a license from the Michigan Gaming Control Board, which regulates online casinos in the state.
The suggestion that DraftKings and FanDuel would offer Pick’em fantasy if it were legal is an excuse for being caught flat-footed by Underdog, who continued to focus on fantasy sports when the incumbents shifted overnight from being sportsbooks to being gambling operations.
These companies are not risk-averse. They have adopted legal arguments that are easy to make and should not be accepted as good faith disagreements on the law.
Green expressed bewilderment at the lack of a pick’em option.
I don’t know why DraftKings and FanDuel don’t offer a pick’em-style fantasy game. I don’t have any information on that issue, but the companies have said publicly that they don’t believe the contests fit within the definitions of state law. There’s nothing legally binding them from reconsidering their conclusion now.
I believe that the incumbents’ shift in focus and resources from fantasy sports to mobile sports wagering is a clear indicator of their intentions. If you believe that your business is sports betting, why bother innovating in fantasy sports?
In 2022, the Department of Attorney General issued a cease-and-desist letter to Golden Hearts, a Nevada nonprofit corporation providing services to cancer survivors and the families of those lost to cancer, advising that it was illegally operating.
PrizePicks has opted to stay clear of several US states, including Arizona, Delaware, Hawaii, Idaho, Indiana, Iowa and Louisiana.
PrizePicks has discontinued sales in Maryland and West Virginia following concerns from regulators.
A cease and desist order recently filed by Wyoming’s Attorney General has stopped Underdog Fantasy, LLC, located in Ohio; and PrizePicks, Inc., located in North Carolina from doing business in Wyoming.
