DFS operators told to end real-money contests in Delaware

Delaware Department of Justice (DOJ) has issued formal notice to daily fantasy sports (DFS) operators that their real-money contests are not permitted under Delaware law.

The office of Attorney General Matthew Denn has sent letters to DraftKings, FanDuel and Yahoo requesting that they add Delaware to their respective online lists of jurisdictions in which players cannot win monetary prizes.

A statement from Denn’s office laid out the DOJ’s position that chance is the dominant factor in DFS games, saying that while a DFS player selects players and teams, they have “no role in how these players actually perform once the real-life games or events occur.”

In short, the DOJ claims that “the most skilled participants might lose and the less skilled participants might win” because “real life players are human and human behaviour is unpredictable.”

The DOJ said that it first notified state regulators in March that DFS was illegal gambling under state law, but held off on taking immediate formal action “because certain online fantasy sports companies indicated that a change in Delaware law would be proposed in the state legislature.”

The Delaware General Assembly adjourned at the end of last month with no such legal changes having occurred.

In its closing paragraph, the statement reads: “We are certain that many Delaware residents and visitors would enjoy participating in the full array of fantasy sports contests, including those that require payment for participation and have cash awards.

“But until such contests can be offered legally, the DOJ must enforce the law.”

The operators named by the DOJ have yet to comment on the matter.

DFS had been enjoying better legal fortunes in recent weeks, with a bill passed in New York last month to legalise DFS throughout the state.