Daily Fantasy Sports Hits a Roadblock in Delaware

By in Daily Fantasy on

DraftKings and FanDuel, the two major daily fantasy sports operators in the United States, have endured an ongoing legal battle with their industry and state laws. That battle continues in Delaware, per reports.

Delaware Says No to DFS

According to numerous reports, the state of Delaware has issued cease and desist letters to major daily fantasy sports operators to stop offering real-money gaming for Delaware residents.

Delaware Attorney General Matthew Denn has been the driving force against DFS in the state, as he’s pushed forward an anti-daily fantasy sports campaign that suggests the betting genre is not legal per current Delaware state law.

Dean’s letters have gone out to the three major DFS players – DraftKings, FanDuel and Yahoo – in an effort to place Delaware on each site’s restricted playing area list.

Delaware’s Main Beef

Delaware’s biggest issue with DFS stems from the fact that DFS players have no control over what their fantasy teams do. More specifically, Denn’s office suggests that upon drafting their fantasy team, the human player has “no role in how these players actually perform once the real-life games or events occur”.

It’s tough to argue that logic, but federal law still contests that daily fantasy sports leagues and games are a “game of skill” and that there is enough strategy and research involved to make it a skill-based game.

While that may remain the case on the federal law and we’re seeing slow change across the U.S. working in DFS’ favor, Delaware still disagrees.

Interesting Take

It’s worth wondering if Delaware’s hard stance against the DFS industry could be short-lived. After all, Delaware is among just three U.S. states that currently offers legal online gambling.

Whether the state ends up finding daily fantasy sports to be gambling or not, their current online gaming laws shouldn’t interfere with DFS operations for long.

Then again, that discussion on “consumer role” could be the selling point. If Delaware can’t get past that language, daily fantasy sports may have to exit the state for good.

Note the Momentum

Delaware disagrees and may stick to that stance for the foreseeable future, but one loss doesn’t kill the major momentum that is visible across the daily fantasy sports industry.

Daily fantasy sports appears to be on the verge of big things, especially on the legal side of the argument. The industry just enjoyed a massive win with New York giving the green light on DFS regulation and legalization and with one of the biggest dominos falling, the wheels are in motion for more states to follow suit and make DFS legally accepted across the majority of the United States.

It’s possible Delaware is among the states that temporarily isn’t allowing legal pass until the language can get worked out. However, until something changes, Delaware residents will have to cope with not playing real-money DFS contests.

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