On Friday, Massachusetts Attorney General Maura Healey filed her final regulations for the daily fantasy sports (DFS) industry in her state, making it the third state to implement DFS regulations. All three have happened very recently, with both of the others – Virginia and Indiana – passing their regulations this month.
Healey initially proposed DFS regulations back in November and little has changed between then and now. In a press release at the time, words she nearly mimicked in a press conference, she said:
These regulations are a first of their kind for the Daily Fantasy Sports industry, and they focus on protecting minors, ensuring truthful advertising, bringing more transparency to the industry, and leveling the playing field for all consumers,” AG Healey said. “This is a first step, but an important step, as we continue to evaluate this new industry and make sure our laws keep up with these evolving technologies.
As one would expect, the regulations include extensive language intended to protect minors. Nobody under the age of 21 is permitted to participate on a daily fantasy sports site; if a minor is found to be registered, his funds will be returned and his account will be closed. The minor could actually receive winnings, though, if it was determined that he simply registered as himself and wasn’t found out. If he misrepresented his age, though, his winnings will be taken away and given to another contestant.
Additionally, DFS contests are not allowed to be based on amateur sports such as college and high school sporting events. DFS operators cannot advertise at schools or colleges, either.
The regulations also aim to promote a fair game, one in which “highly experienced” players are easily identifiable by all players (denoted by an icon in the software) and that these players are not permitted to participate in games reserved for beginners. In addition, to prevent deep pocketed professionals from overwhelming tournaments, there are limits placed on how many entries a player can make in a given contest. For example, in a contest with more than 100 players, players are limited to 150 entries or 3 percent of all entries, whichever number is smaller.
And, of course, the regulations are intended to protect all customers of DFS sites. Player deposits are to be segregated from operational funds and credit cannot be extended to players. Individual player deposits are capped at $1,000 per month, but the DFS sites do have leeway to increase that on a case-by-case basis. Operators must also allow players to self-exclude or put restrictions on their own play.
Operators are required to be in compliance with these regulations by July 1st.
