Daily fantasy sports companies that want to operate in MA will have to drop college sports contests and ban players under 21 under new consumer protection regulations finalized Friday by Attorney General Maura Healey.
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There are also requirements for “beginner” contests that highly experienced players would be prevented from entering and limits on where the companies can advertise.
DraftKings said it would “fully comply” with the new regulations.
This week, the two sides announced a settlement under which DraftKings and FanDuel agreed to stop taking bets in NY while lawmakers consider whether to legalize
the games.
Regulations would also ban fantasy games based on college sports, advertising for fantasy games at high school and college campuses, and accepting total deposits of more than $1,000 a month from most players. Even before Friday’s filing, industry leaders like Boston-based DraftKings and FanDuel said they had already begun to implement some of Healey’s rules.
Healey proposed the 21-year-old age limit back in November, but faced some pushback from daily fantasy sports operators, who argued that 18 was a more appropriate cut-off. “We know from studies that the problem of addictive behavior, addictive play is particularly pernicious for young people”. Visitors gambling at casinos in MA must be 21, and Healey has called daily fantasy sports legal gambling. Any company that violates the rules could be subject to court action – with penalties ranging from fines to a company shut-down – under the state’s consumer protection law.
The rules apply specifically to daily fantasy sports contests, which allow players to assemble rosters of real-life athletes in a competition that lasts for just one day or one week.
DraftKings consultant and former Attorney General Martha Coakley, under whom Healey worked before running for the top office herself, said in a DraftKings statement that the Boston-based company’s pledge to comply with Healey’s rules is “an impressive example of a company’s commitment to being responsive to its regulators”.
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Healey’s regulations do not address any special taxes for fantasy sports companies – that issue would have to be decided by the state Legislature.
