Maura Healey, the Attorney General of Massachusetts, has officially filed the regulations she has created to oversee daily fantasy sports operations in the state. The regulations include provisions that will exclude contests based on college events, with players restricted to age 21 or older to participate. Consumer protections have also been added to the regulations.
Operators such as DraftKings and FanDuel, who wish to operate in the state, will have to implement the regulatory changes by the 1st of July. In the regulations, it notes that nothing in the regulation may be defined as authorizing a wager, bet, or a gambling activity that is prohibited by law.
With the new regulations in place, Massachusetts becomes one of only three states that has regulation in place for DFS contests. Virginia and Indiana also have regulations as part of their state laws. DraftKings has already announced they plan on complying fully with the new regulations in the state.
The final filing of regulations at Healey are generally the same as what was outlined back in November, with minimal changes. The major regulations include operators only allowing players who are 21 years of age or older. DFS contests cannot be offered on college games or other amateur sporting events. DFS contests cannot be played by employees or ‘contractors’.
The security of data that is related to the contests must follow protocols set by the state as well as based on federal law standards. ‘Truth in advertising’ standards must be followed and ‘problem gaming’ protocols have to be implemented including the option for individuals to self-exclude from gaming if needed.
A major part of the regulations include segregated player accounts. Operators must ensure that the player’s real-money accounts remain segregated from the operational account. According to the regulations, it states that consumer accounts have to be held in a trust for DFS Consumer in segregated account or in a special purpose Segregated Account that is maintained and controlled by a constituted corporate entity that is not the DFSO. The governing board must also include one or more corporate director who is independent of the DFSO and any corporation that is controlled or related to the DFSO.
Operators of DFS contests are seemingly willing to accept the regulations at hand since many states such as New York are shutting out the DFS companies. Several states have ruled DFS gaming illegal and calling for the companies to cease operations within their borders.