Virginia and Maryland Take Different Approach to Daily Fantasy Sports

Virginia Representative Jackson Miller Has a DFS Bill

Jackson Miller is one of three Virginia lawmakers who submitted a fantasy sports bill.

Lawmakers in Virginia and Maryland are both seeking to pass gaming laws which would regulate fantasy sports contests in their states. In Virginia’s case, the legislature appears moving towards a full legal and regulatory framework for both traditional fantasy sports and daily fantasy companies. In Maryland, State Attorney General Brian E. Frosh is signaling a reluctance to go that route.

In Virginia, the new laws would put fantasy sports on “firm legal ground”, accordign to Graham Moomaw of the Richmond Times-Dispatch. The Virginia legislation is backed by FanDuel and DraftKings, the two leading daily fantasy sports companies.

Virginia Fantasy Sports Bills

Three different versions of a fantasy sports bill will be filed in the Virginia legislature. One has been filed in State Senate. Two other bills are being filed in the House of Representatives — one by a Republican and one by a Democrat.

The Republican sponsor, Jackson H. Miller of Manassas, said he took action out of concern that a million Virginians would be disenfranchised by the actions of a single official. Miller said, “Over a million Virginians play these. And I do have concerns about people wanting to come in and just shut the concept down.

Jackson Miller is referring to the attorney generals in New York and Illinois, who unilaterally declared fantasy sports illegal in their states. In Illinois, AG Lisa Madigan appears to be closing the gaming loophole in an attempt to spur action by the Illinois state legislature on regulations — at least that appears to be her stated goal.

In New York, AG Eric Schneiderman wants to ban all forms of fantasy sports — both yearly and daily versions — and impose a $4 billion punitive action against DraftKings and FanDuel. In Schneiderman’s case, he either wants to end all forms of fantasy football and fantasy baseball in New York State, or he wants to intimidate the DFS companies into bowing out of the state before their lawsuits see the inside of a court.

Marcus Simon’s House Bill

Virginia politicians seem to be taking a more constructive approach, while trying to protect their constituents. Marcus B. Simon, a Democrat from Fairfax, is the co-sponsor of the Democrat’s version of the bill in the House of Representatives. Simon said his motivation is similar to Jackson Miller’s, though he expressed concern for the Virginians who play one-day fantasy sports for real money.

Assemblyman Simon said, “My interest in proposing this legislation is to protect the industry. To protect the concept that we can do this as a recreational activity without having it creep too far over the line into something that looks like an addictive form of gambling.

Marketing to Children?

Marcus Simon said his 10-year old son, who is already a fantasy sports aficionado, plays for free on one of the DFS sites. Simon says he believes game enthusiasts should be able to have their fun, so long as it is harmless. But he wants protections in the law to make it harder for DFS sites to advertise to free-for-play youths. Simon said he had monitored his son’s activities, and these gave him definite ideas on what needs to be done under the law.

Simon added of the free DFS gaming, “Even there you’re sort of bombarded with, ‘Hey, wouldn’t it be even more fun if we could make this a little more interesting?.’ I think we need to make sure we lay out the framework and lay out what the parameters of this are going to be. And set some boundaries.

Ryan McDougle’s Senate Bill

In the Virginia Senate, said Sen. Ryan T. McDougle, a Republican from Hanover, is sponsoring the fantasy sports bill. Sen. McDougle said the gaming regulation is minimal, but like his counterparts in the House, he wants a law on the books to maintain the legislature’s primacy in creating laws. McDougle said of his bill, “It’s not expansive. It’s not burdensome. But it does put in some protection for consumers.

Maryland Attorney General on DFS

The picture does not look as rosy for DraftKings and FanDuel in Maryland. Attorney General Brian Frosh confirmed for the Washington Post this week that yearly fantasy sports is legal, but he also said he did not think the daily fantasy sports played on FanDuel and DraftKings is legal under current laws.

In a letter to Maryland Senate President Thomas Mike Miller, who had requested a clarification of the law, Frosh wrote, “We recommend that the legislature squarely take up the issue this session and clarify whether daily fantasy sports are authorized in Maryland. By contrast, we think it is clear that traditional fantasy sports were authorized by [a 2012 law].

Thus, one state looks like it is ready to declare for legal and regulated fantasy sports. The next state over appears to be entering a more troublesome phase of negotiations. Such is the way with a 50-state solution to gaming regulations.