On Thursday, Massachusetts Attorney General Maura Healey announced the drafting of a number of consumer protection regulations for the new and rapidly evolving daily fantasy sports (DFS) industry. These regulations, which will take effect “immediately” upon their filing with the Secretary of State on today, will impose certain requirements on DFS businesses offering contests in the state. According to Ms. Healey, “these regulations are a first of their kind for the Daily Fantasy Sports industry, and they focus on protecting minors, ensuring truthful advertising, bringing more transparency to the industry, and leveling the playing field for all consumers.”
Given the recent scrutiny of DFS – including an attempt by New York Attorney General Eric Schneiderman to shut down the contests offered by the industry’s two leading operators, DraftKings and FanDuel – the actions taken by the Massachusetts Attorney General constitute an important step in clarifying the legal status of DFS and ensuring that the games continue to emerge as a fun, safe way for people to enhance their sports-watching experience. While the proposed regulations are certainly “robust,” the Attorney General showed a willingness to learn about the industry and work with daily fantasy sports businesses, rather than against them, to accomplish the goal of protecting consumers. Further, though the regulations are just an “interim measure” and are subject to change – possibly following the close of the open comment period and public hearing in January – they could serve as a model for other states that are considering regulations or legislation.
A copy of the draft regulations can be found below.