AG proposes tough regulations for daily fantasy sports industry

Review shows less than two percent of all players win 90 percent of all prizes

BOSTON, Mass. (WWLP) – After several months of review and investigation, Attorney General Maura Healey is cracking down on daily fantasy sports games. She hopes to ban high school and college students from accessing these websites.

“Our regulations will prohibit people under the age of 21 from playing daily fantasy sport games,” said Healey.

Websites like DraftKings and FanDuel have attracted sports fans nationwide with the chance to win millions of dollars through daily bets against other players. AG Healey wants to protect consumers against misleading advertising. Her review shows that less than two percent of all players win 90 percent of all prizes.

Professional players have figured out a way to vastly improve their chances of winning against less experienced players. The AG’s proposed regulations would require the fantasy sports industry to separate players based on skill, so everyone has a fair shot at winning. Healey believes state lawmakers should get involved.

State Representative Jay Kaufman (D-Lexington) told 22News, “Should we be looking at this and assuming that we have some kind of role as regulators? Absolutely.”

The proposal would also ban any advertisements of fantasy sports on college campuses and prohibits bets on college sports and athletes.

The AG’s office is scheduled to a hold a public hearing on the draft regulations on January 12.

Statement from DraftKings on proposed regulations:

“The Massachusetts Attorney General has taken a thoughtful and comprehensive approach to the Fantasy Sports Industry. While we do have some concerns with the draft regulations, we intend to work closely with the Attorney General’s office to ensure we are operating in the best interest of our customers. We will utilize the next 60 days to share our comments in the hopes of effecting some changes and are firmly committed to continuing to operate in a lawful and transparent manner. We will immediately begin taking steps to prepare to implement the changes to our product that the Attorney General requires.

We appreciate that, in addition to Attorney General Healey, a number of state regulators and other authorities are taking a reasoned approach to the Fantasy Sports industry that considers the interests of sports fans who love to play these games and recognizes the value in innovation and entrepreneurship.

We believe the process followed by AG Healey and the Commonwealth of Massachusetts will ultimately result in a positive outcome for the millions of fantasy sports fans around the country who want to be able to enjoy DraftKings’ games in a fun, fair, and transparent environment.”

Statement from FanDuel on proposed regulations:

“Attorney General Healey’s approach towards regulating fantasy sports makes a tremendous amount of sense — it provides strong protections for consumers and allows sports fans to continue doing something they love. FanDuel believes that regulations which increase transparency and ensure contests are fair will benefit the entire fantasy industry. We appreciate that there will be a public notice and comment period to collect input from all relevant parties and FanDuel will submit our comments to the regulations in the next 60 days. We also welcome the opportunity to work with Attorney Generals in all states, along with other lawmakers, to implement fair regulations that benefit both consumers and sports tech innovators.”

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