After negotiating for three months, the Attorney General of Idaho, DraftKings and FanDuel have come to an agreement. Lawrence Wasden stated in a press release that the two companies will no longer be offering the paid DFS contests within the state of Idaho. Both daily fantasy sports companies ceased operations on the 1st of May and will no longer allow anyone in Idaho to take part in the sports contests.
FanDuel and DraftKings will be processing requests for withdrawal by individuals in Idaho in a timely fashion. Technology using geolocation will be used or IP addresses will be checked to determine if a player is located in the state to stop the individual from taking part from this point on.
Attorney General Wasden stated that his concern was that the real money daily sports contests that are offered by these companies constitute as gambling under the state law. Wasden states that it is his duty to enforce and uphold the law and he commends the DFS companies for negotiating in good faith and being agreeable to not offering their services within the state.
It was back in January that Wasden started a review of the DFS companies and their websites. The constitution of Idaho prohibits gambling in any way except for the lottery, bingo, raffle games and pari-mutuel betting. Defining DFS as gambling placed the activity into the illegal gaming category.
In the agreement, FanDuel and DraftKings do have the option to resume their services in Idaho if the legislature of the state decides to change the law and allow the activity as well as regulate the gaming contests.
The DFS changes in Idaho come just days after the state of Alabama announced the two companies will no longer be offering their serivces within the state. Tennessee took a different route and passed legislation to regulate the industry.