The State of the DFS Market in the States

A few developments in the American DFS market have taken place this week starting with the Massachusetts Gaming Commission's informational forum held on Thursday with representatives from DraftKings and FanDuel in attendance to show support regulatory recommendations presented by Massachusetts Attorney General, Maura Healey. Zakary Cutler, director of product management for Boston's DraftKings, and Stephen Martino, a FanDuel lawyer, agree that the suggested regulations seem fair and could serve as guide for other states to follow. "We firmly believe this is a game of skill that's legal in Massachusetts and should be subject to reasonable regulations," former state Attorney General and current counsel for DraftKings, Martha Coakley, said. The DFS companies intend to respond to the recommendations in preparation for a hearing to take place in January 2016. Stephen Crosby, chairman of the Commission, closed Thursday's discussion by saying, "What we heard today is that they [DFS firms] need to know the rules of the road. So as long as the rules are, in their terms, commercially viable and technologically feasible, they will welcome them. That seems like a perfectly reasonable starting point." Over in New York, Attorney General Eric Schneiderman requested and was granted a temporary injunction to stop DraftKings from operating in New York until the legality is determined. Supreme Court judge Manuel J. Mendez handed down his ruling on Friday, which directed DraftKings and FanDuel to stop operating in NY despite both companies claiming that their products are based on skill and should not be classified as gambling. The judge's ruling can be found under reference 453056/2015. The dispute over whether daily fantasy sports are gambling or not has done its share of damage to operator figures. Chris Grove, a gambling industry analyst, observed that entry fees have been on the decline since the DFS scrutiny began.