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State Regulation of Fantasy Sports Now Appears Inevitable


Before October 2015, the major daily fantasy sports (“DFS”) operators accepted players in their pay-to-play contests from all U.S. states except five: Arizona, Iowa, Louisiana, Montana, and Washington. On October 5, 2015, it was reported that some of their employees were winning large jackpots playing on rival sites. Since then several states have investigated DFS operations, and ten attorneys general have issues statements or formal opinions relating to the conduct of fantasy sports contests in their states: Georgia, Hawaii, Illinois, Maryland, Massachusetts, Mississippi, Nevada, New York, Rhode Island, and Texas. All except three concluded that DFS contests constituted gambling under applicable state law, and thus were unlawful, or, in the case of Nevada, unlawful unless licensed.

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