The governor of Virginia has signed a bill into law that permits fantasy sports websites to operate in the state provided they follow certain guidelines.
Now, Connecticut is considering similar legislation.
The Nutmeg State’s General Law Committee is weighing Senate Bill 192, which gives the Department of Consumer Protection the authority to regulate daily fantasy sports games from unfair or deceptive practices.
The bill is only a broad outline but it asks that regulations include a specification that daily fantasy sports contests are not contests of chance, and that individuals under the age of 21 be restricted from playing. It also requires fantasy game operators to use “truthful advertising” and that procedures be put in place to ensure the game’s integrity.
There are also demands for consumer-deposit and problem-gambler protections.
It’s not clear if Connecticut would consider taxing fantasy sports’ revenues or requiring a permit fee. The bill got a public hearing March 3 and received testimony from a lobbyist from DraftKings (a major fantasy sports site), the Fantasy Sports Trade Association, the Connecticut Lottery Corp., and the Connecticut Council on Problem Gambling.
Read their arguments here.
Virginia law
Virginia’s statute, which passed both houses of the state’s legislature with strong support, empowers that state “to regulate this emerging industry and keep consumers safe from abuses,” said Brian Coy, communications director for Gov. Terry McAuliffe.
The law sets in place consumer protections and guidelines for fantasy operators, which are required to register annually with the state’s Department of Agriculture and Consumer Services.
If operators follow the rules, the bill stipulates that fantasy contests do not constitute illegal gambling.
DraftKings welcomed the news.
“We thank Gov. McAuliffe for his leadership and advocacy and are hopeful that other states across the country will follow Virginia’s lead,” said Griffin Finan, director of public affairs for DraftKings.
Fantasy sports are explicitly allowed under a federal law that prohibits most forms of online gambling. But each state also has its own gambling laws.
New York Attorney General Eric Schneiderman issued cease and desist orders to DraftKings and rival site FanDuel in November, saying “daily fantasy sports are creating the same public health and economic concerns as other forms of gambling.”
In January, Texas Attorney General Ken Paxton issued an opinion that fantasy sports sites violate the state law prohibiting gambling.
CNNMoney’s Robert Mclean, Chris Isidore and Jackie Wattles contributed to this article. HBJ Editor Greg Bordonaro also contributed to this article.
