This week, a report surfaced that the Massachusetts Attorney General will be reviewing the legality of daily fantasy sports and in particular, industry giant, Boston-based DraftKings. This report comes on the heels of related stories that the gaming commission in Nevada is undertaking a similar review, that California is moving towards regulating the industry, and that Congress may conduct hearings on the subject of daily fantasy sports.
What are the expected consequences of the AG review?
The report on the Massachusetts AG’s review is short on details as to nature and scope. And, please note that courts are not obliged to follow Attorney General advisory opinions. However, in a state like Massachusetts, which does not have a statute directly addressing the legality of fantasy sports, the AG’s advisory opinion would be persuasive. Therefore, if the AG ultimately concludes that daily fantasy sports is a game of chance, and thus, an illegal form of gambling, the opinion could have significant relevance on how fantasy sports companies evaluate the risks of operating in the State. The AG opinion could also influence how lawmakers proceed in the future. We have written about this with regard to recent developments in Kansas, where the Kansas State Attorney General’s favorable opinion on a fantasy sports bill ultimately paved the way for legalization.
Keeping Your Fantasy Sports Venture Legal
As noted above, Massachusetts has joined the whirlwind of activity engulfing fantasy sports contests at the state level across the country. As such, when setting up or operating a fantasy sports contest or other gaming venture, it is important to retain competent legal counsel to become/remain compliant with applicable law.