ARTICLE
23 August 2016

Massachusetts Becomes Ninth State To Legalize Daily Fantasy Sports

SM
Sheppard Mullin Richter & Hampton

Contributor

Sheppard Mullin is a full service Global 100 firm with over 1,000 attorneys in 16 offices located in the United States, Europe and Asia. Since 1927, companies have turned to Sheppard Mullin to handle corporate and technology matters, high stakes litigation and complex financial transactions. In the US, the firm’s clients include more than half of the Fortune 100.
Massachusetts Governor Charlie Baker has signed into law a bill to legalize daily fantasy sports in the Commonwealth.
United States Media, Telecoms, IT, Entertainment
To print this article, all you need is to be registered or login on Mondaq.com.

Massachusetts Governor Charlie Baker has signed into law a bill to legalize daily fantasy sports in the Commonwealth. Massachusetts is the ninth state to legalize daily fantasy sports, and the eighth to do so this year. The legalization of daily fantasy sports, or "fantasy contests," was included in a larger bill—H. 4569—related generally to job creation and workforce development.

Under the bill, "fantasy contest" is defined as "any fantasy or simulated game or contest, in which:

  1. the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest;
  2. all winning outcomes reflect the relative knowledge and skill of the participants and shall be determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and
  3. no winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of such teams or solely on any single performance of an individual athlete or player in any single actual event."

The bill requires contest operators to act in accordance with the regulations set forth by Massachusetts Attorney General Maura Healey in March of this year. Those regulations require, among other things, that DFS contest participants be at least 21 years of age, no contests be offered based on college or amateur sporting events, employees of DFS operators be restricted from participating in DFS contests, and that participant deposits be limited to $1,000 per month.

This development comes on the heels of New York Governor Andrew Cuomo signing a bill to legalize daily fantasy sports in New York, which has been the primary courtroom battleground for the industry. Notably, major daily fantasy sports operators DraftKings and FanDuel are based in Boston and New York, respectively.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More