Daily Fantasy Sports operators were able to add a feather to their victory caps this week after the Massachusetts’ General Court passed a surprise bill that could legalize DFS in the state. The only thing now standing in the way of legalized DFS in Massachusetts is the formal signature by Governor Charlie Baker.
Hardly any efforts have been made on a formal level to introduce DFS legislation in Massachusetts and the new laws were essentially part of a wider economic development package known as H4569. The House, followed by the Senate, voted almost unanimously to push through H4569 on the final day that laws could be voted on in this session. This is the first time that DFS rules have been approved as part of a wider package since past DFS success has only been in standalone bills in other states.
Perhaps the most important part of the Massachusetts bill is that it specifically states that DFS should not be considered gambling within the framework of state law. According to the wording of the bill, fantasy sports falls under the category of a ‘fantasy contest’ which is is any fantasy or simulated game or contest, in which:(i) the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest; (ii) 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 (iii) 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.”
Other important things to note about the Massachusetts DFS Bill:
* It does not regulate Daily Fantasy Sports.
* It does not seek taxes from DFS operators.
* It does not charge license fees.
* It seeks the creation of a special commission which will study DFS and online gambling in Massachusetts and which will “review all aspects of online gaming, fantasy sports gaming and daily fantasy sports including, but not limited to: economic development, consumer protection, taxation, legal and regulatory structures, implications for existing gaming, burdens and benefits to the commonwealth and any other factors the commission deems relevant.”
