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Massachusetts to Ban DFS for Under-21-Year-Olds, Among Other Regulations

At this point, compromise is good news for sites like DraftKings and FanDuel.

It's not all doom and gloom for the litigiously challenged daily fantasy sports (DFS) world.

Last month, Nevada issued a cease-and-desist order against DFS sites like DraftKings and FanDuel, arguing that they would need to register for a gambling license and comply with parameters set by the Nevada Gaming Control Board in order to continue operating. After being served another cease-and-desist by New York Attorney General Eric Schneiderman earlier this month, DFS sites seemed to be going the way of the dodo. But Massachusetts issued a proposal today that would regulate the industry within the state, not ban it outright, as Reuters reported.

State Attorney General Maura Healey put forward several measures that would allow DFS sites to operate in Massachusetts; foremost among them would be a minimum age requirement of 21 to play. Among other proposals were a ban on playing DFS pertaining to college sports, a ban on DFS promotion on high school and college campuses, and a ban on professional athletes, agents, and other people associated with pro sports from participating.

Draft Kings responded to the Massachusetts proposal in a statement released today:

"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."

Until recently, the $1.3 billion DFS industry had enjoyed an existence largely free from regulation; now it seems like they're just satisfied to be getting back a piece of the pie. We've yet to see if the rest of the nation will compromise as generously as Massachusetts.