Alabama Declares DFS Sites To Be Illegal GamblingState Joins Growing List Of Jurisdictions Making Decisions On DFS |
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Alabama has joined the likes of Nevada and New York in determining that daily fantasy sports sites run afoul of state gambling laws, though the Yellowhammer State has considered legislation that would change that.
Alabama Attorney General Luther Strange announced Tuesday that he has issued cease and desist letters to DraftKings and FanDuel, the two leading players in the space.
Strange has given DraftKings and FanDuel have until May 1 to cease offering paid daily fantasy sports contests in Alabama. The state, long considered unfriendly to gambling, is one of only a handful in the country without a lottery. Alabama has no commercial casinos.
“As Attorney General, it is my duty to uphold Alabama law, including the laws against illegal gambling,” Strange said in a press release. “Daily fantasy sports operators claim that they operate legally under Alabama law. However, paid daily fantasy sports contests are in fact illegal gambling under Alabama law.”
According to Alabama law, an activity constitutes illegal gambling if a person stakes something of value on a contest, regardless of how much skill predominates, in order to win a prize. Strange admitted that DFS requires “a measure of skill.”
“But in the end, contestants have no control over the performance of the players on their rosters. For example, a player could fall ill before a game, be injured in pre-game warm-ups, or miss a large portion of the game due to injury or equipment failure,” Alabama said.
According to the state, it is now the 12th in the country to declare DFS illegal.
While some states ban it, others have decided to go the opposite route and regulate it. Massachusetts recently became the third U.S. state to do so.
According to Eilers Research, the DFS market could be as large as $2.5 billion by 2020, depending how many states take action on the games. Though New York considers it illegal, lawmakers there are working on a bill to legalize and regulate it. California, Mississippi and Maryland are all considering legislation favorable to DFS.
More than 25 state in total are considering some form of legislative action on DFS.
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