Uncertainty for Virginia’s Daily Fantasy Sports

Lea Hogg December 19, 2023

SiGMA news

Uncertainty for Virginia’s Daily Fantasy Sports

Virginia, a pioneer in legalizing Daily Fantasy Sports (DFS) back in 2016, is now faced with uncertainty as its Attorney General, Jason Miyares, declares pick’em-style DFS contests to be de facto gambling.

Virginia Attorney General’s opinion

The legal opinion, issued in response to State Delegate Wren Williams, brings into question the nature of these contests, where players compete against the house rather than each other, and categorizes them as sports betting under Virginia law.

Industry scrutiny across States

The spotlight on pick’em DFS intensifies not only in Virginia but across the United States. States like Florida, New York, and California are examining the nature of these games and debating whether they should be classified as sports betting, thereby subjecting them to a different set of gambling and sports betting laws. The outcome of these deliberations could significantly impact taxation, licensing costs, and the overall availability of pick’em DFS in different jurisdictions.

Response and legal climate

While Miyares’s opinion is not legally binding, it has prompted a response from the Coalition for Fantasy Sports, representing licensed Virginia DFS operators like PrizePicks, Underdog Fantasy, and Sleeper. The group disagrees with the Attorney General’s stance, asserting that its member companies are licensed and operating legally in the jurisdiction of Virginia. The ongoing legal tug-of-war highlights the potential influence of Attorney General opinions on future legislative decisions, making the upcoming Virginia Assembly session crucial in determining the fate of DFS in the state.

Legal closure is required

As Virginia’s DFS industry faces this legal crossroads, the opinions of key stakeholders, legal authorities, and industry players will shape the future of pick’em DFS in the state. The Coalition for Fantasy Sports remains optimistic about its positive working relationship with governing agencies, emphasizing the importance of the licensing process established by the Virginia General Assembly. With legal nuances at play, Virginia’s DFS landscape is in a state of flux, awaiting potential shifts during the upcoming legislative session.

In light of the evolving disagreement on the legalities surrounding pick’em DFS in Virginia, there is an imperative need for a definitive legal closure or conclusion to provide much-needed clarity for all stakeholders in the industry, from operators to regulatory bodies and beyond.