Indiana has just become the second state in the United States to legalize and regulate daily fantasy sports websites after Bill 339 was passed by Gov. Mike Pence. The first state to pass the bill was Virginia, who did so only a few weeks ago as Gov. Terry McAuliffe signed the bill into law at the beginning of March. As many believed would happen, this action caused the bill to go from state to state, making its way through New Jersey, and finally ending up in Indiana.
DFS Regulations and Law
After only one week of having received the bill, Pence signed the bill into law; a quick turnaround. This new law would enforce and regulate any DFS website, like DraftKings or FanDuel that would seek to participate within their borders. The general rules that apply include:
- DFS players must be at least 18 years old. They must have proper procedures for denying anyone outside of the state or below the allowed age to participate.
- DFS websites must not take action on High School or College sports, sorry March Madness fans; you can always go to Las Vegas.
- Prohibits the use of horse race results.
- Any prize awarded in a paid fantasy sports game must be made known before the paid fantasy sports game begins.
These seem simple enough, and seeing as there are plenty of professional sports that are played in the US and around the world, these DFS sites will have plenty to offer. The state will receive $50,000 from each DFS operator as a type of licensing fee, as well as a $5,000 yearly fee; both are subject to change. There is still not enough data in order for the state to enact taxes, either on the operator or the players that participate. Either way, it is a small price to pay, seeing as how the Indiana Gaming Commission currently states that it has over 150,000 residents that play. They will also be in charge of oversight and enforce any of the rules in order to protect the consumer.
The Future Looks Bright for DFS Websites
With this big step forward for DFS websites, as Virginia and Indiana take lead on regulating daily fantasy, DraftKings could not be happier, as public affairs director Griffin Finan stated,
“Today, Indiana became yet another state to put in place a thoughtful and appropriate regulatory framework to protect the rights of fantasy players. We thank Governor Pence for his leadership and advocacy and are hopeful that other states across the country will follow Indiana’s lead.”
It seems to be possible that by the end of the year more than 20 states will have signed a similar bill into action. California and New York are the most likely to follow suit, as these states boast the biggest markets in the nation and have the most to gain.