General Maura Healey has set out final regulations to legalize daily fantasy
sports (DFS) contests in the state, which must be implemented by operators no
later than July 1st of this year.
Leading DFS operator
DraftKings described the regulations as “tough”, while FanDuel said it had
concerns that the regulations may “restrict the ability to introduce new
The AG released the
final regulations Friday, having issued draft consumer
protection regulations last November. Massachusetts now becomes the third
state, after Virginia and Indiana, to put DFS regulations in place.
The new rules, 940 CMR 34.00, are intended to protect Massachusetts
consumers who play DFS contests for prizes from “unfair and deceptive acts and
practices that may arise in the gaming process.”
It defines an operator
as any enterprise that offers more than ten DFS contests per month through the
internet or via a mobile app, with no games to be permitted on amateur,
college, high school or student sporting events.
Players must be over
the age of 21, and are not allowed to deposit more than $1,000 in any calendar
month, unless specifically requested by the player and agreed by the operator.
This procedure includes the evaluation of information, including income or
asset information, sufficient to establish that the player can afford losses
that might result from gameplay at the deposit limit level requested.
include information to promote responsible gaming, including information
concerning assistance available to problem gamblers or directing customers to a
“reputable source for such information.”
Operators are also
prohibited from dissolving, merging or consolidating with another company,
while there are unsatisfied obligations to DFS players. Employees or anyone
affiliated with a DFS operator are not allowed to take part in any contests,
although they can play in a private contest as long as that individual’s
relevant affiliation has been fully disclosed to each player.
“We want to thank
Attorney General Healey for her deliberate, comprehensive approach to ensuring
the viability of fantasy sports in Massachusetts and protecting consumers in
the state,” said FanDuel. “The Attorney General requested and carefully
reviewed comments from the fantasy sports industry and consumer protection
advocates over the past 60 days, and made sensible adjustments to several
provisions, which will ultimately benefit consumers.”
The operator said
however that although it shares the goal of protecting consumers, it had
concerns that the regulations, in some instances, will restrict the ability to
introduce new pro-consumer innovations.
“Nevertheless, we will
work diligently to ensure we are in full compliance, and hope to see the
regulations evolve over time to continue to allow further innovation,”
continued FanDuel. “Again, the Attorney General took a thoughtful approach from
the beginning, and we look forward to working with lawmakers across the country
in a similar manner. We fully support sensible regulations to protect consumers
and ensure sports fans nationwide can continue playing the games they love.”
DraftKings said that
it appreciated the leadership of the Attorney General and her office and their
willingness to have a meaningful dialogue about issues of importance to the
“The regulations put
forth today by Attorney General Healy are tough, but we will comply,” the
company said. “We will continue to work with policymakers across the country to
ensure that fantasy contests are fun and fair for the tens of millions of
sports fans who enjoy playing them.”