Daily fantasy illegal, says Vermont Attorney General

John Treadwell urges lawmakers not to pass enabling legislation, Maryland AG also believes DFS skating on thin ice 

Vermont assistant Attorney General John Treadwell said he believed daily fantasy sports (DFS) contests were illegal under state gaming law at a hearing to discuss enabling legislation last week. [private]

At the meeting, Treadwell said the state had “very strict long-standing limitations on gambling” and legalizing DFS would give the activity special status over other forms of gambling.

“Exalting one version of gambling above others does not seem appropriate. Vermont has so far taken no legal action against fantasy companies,” he told Reuters.

The meeting was held to discuss Senator Kevin Mullins’ S 223 bill which, if passed into law, would legalize and regulate the activity and enforce certain player protections.

But Treadwell said the bill “takes one variety of illegal, for-profit gambling and makes it legal without any consideration for why this particular one is being chosen and others are not.”

Treadwell said his office was open to taking a closer look at the state’s gaming laws, which currently ban both games of chance and games of skill.

Meanwhile, two lawyers in the Maryland Attorney General office have published an opinion that a 2012 law legalizing season-long fantasy sports does not extend to DFS.

Assistant AG Katherine Rose and chief counsel Adam Synder wrote to Senate President Mike Miller and said the state constitution required any form of gambling expansion to be approved by a referendum.

DraftKings said it agreed with the AG that it is a matter for the legislature but that it believed the 2012 law made it clear fantasy sports, including DFS, are “not gambling and legal in the state”.

“We look forward to continued engagement with lawmakers to ensure that players in Maryland and around the country can continue to enjoy our contests,” the firm added.

The news comes after Nevada Governor Brian Sandoval announced he had reconvened the state Gaming Policy Committee in order to take a closer look at DFS and its interactive gaming agreement.

The Committee is made up of the Governor, select members of the legislature, and other experts from the gaming industry, tribal leaders and members of the public.

“Nevada has always been the epicenter for global gaming entertainment, regulation, and innovation,” Governor Sandoval said in a statement.

“The industry is constantly changing as more states and countries enter this increasingly competitive field, and I believe the changes we are witnessing demand the attention of Nevada’s policy leaders.”

The Nevada regulator was the first to rule DFS met the definition of gambling under state law, with its decision followed by the likes of New York and Illinois.

However, other states like California and Massachusetts have moved to legalize and regulate the activity in order to better protect players.