It’s a big day for daily fantasy sports players in two states as the governors in Missouri and Colorado signed legislation that makes the states the 5th and 6th to regulate daily fantasy sports over the last year.
Despite not having regulated DFS, both states were open to players on most major daily fantasy sites. Top DFS sites FanDuel and DraftKings have praised the bills from both states as well as similar bills from other states over the last few months
About the Colorado Daily Fantasy Sports Law
The bill that passed in Colorado and signed by Governor John Hickenlooper establishes an “Office of Fantasy Sports,” which would create rules that ensure the integrity of the games for the state’s 800,000 daily fantasy players. Among other regulations, the law will require consumer protections such as limiting play to those over 18, segregating player funds and adding restrictions on employee play.
At this point, the agency that will oversee the industry has not set licensing and renewal fees, although those with less than 7,500 users will only need to register with that state and not apply for a license.
About The Missouri Daily Fantasy Sports Law
Missouri Governor Jay Nixon signed the Missouri legislation, which will take effect in August. To operate in the state, DFS sites will need to pay an operation fee of 11.5% of net revenues plus an additional yearly fee of $10,000 or 10% of revenue (whichever is lower). The funds raised will go towards education in the state.
The new legislation, which was overwhelmingly passed in the Missouri legislature, will require that players are over 18 and must have the right to self-restrict their play. A variety of consumer protections are also present in the bill and include self-exclusion rules, a ban on advertising to players under 18 and segregation of player funds.
Like Colorado and many other states, Missouri began looking at regulation late last year. In April, a bill was approved in the Missouri House and subsequently sent to the desk of the governor.
States Which Have Regulated Daily Fantasy Sports
While daily fantasy sports can be played in many states, only a few states have passed legislation giving their stamp of approval to DFS. A handful of states have passed legislation or have had attorney generals give opinions saying that the games are not lawful. This has led major sites no choice but to halt real money play in those states.
Before bills were adopted today in Colorado and Missouri, only Indiana, Mississippi, Virginia and Tennessee have also regulated daily fantasy sports. Virgnia was the first in early March, followed closely in the same month by Indiana . Tennessee and then Mississippi added their states to the list in early May after the attorney generals of each state had stated that games were not legal under state law.