Michigan To Consider Legalizing Fantasy SportsState Could Join Kansas In Authorizing Real-Money Games |
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A lawmaker in Michigan is trying to classify fantasy sports as games of skill in order to make sure the online activity is legal in the state. According to a report this week from GamblingCompliance, Michigan gaming regulators say that daily fantasy sports (DFS) sites are technically illegal under the law in the Great Lakes State, implying that players and operators are risking legal trouble.
The comments come a week after Sen. Curtis Hertel, a Democrat, indicated that he is in the process of drafting legislation to make the games legal. According to LegalSportsReport.com, nearly all of the DFS sites accept players from Michigan at the moment.
Hertel wrote on his Facebook page: “Over the next few weeks an estimated 1 million citizens, myself included, will be gathering to draft their fantasy football teams, unfortunately Michigan law currently has no legal protection for citizens participating in fantasy sports. That is why, today I have introduced Senate Bill 459, a bill which will amend the Michigan penal code to specify fantasy sports as a game of skill, legalizing fantasy leagues in Michigan.”
No copy of the bill is yet available online.
Earlier this year, the state of Kansas enacted a bill that made fantasy sports explicitly legal. Despite previously viewing fantasy sports leagues as illegal lotteries, Kansas had never prosecuted anyone for the activity. It doesn’t appear Michigan has ever either.
Fantasy sports have issues with existing law in Iowa, Montana, Arizona, Louisiana, Texas and the state of Washington. Lawmakers in all of those states except Arizona have begun considering legislation. The public perception of daily fantasy sports has drawn some criticism from casino industry giants, as MGM Resorts CEO Jim Murren said DFS is definitely gambling. MGM Grand Detroit is one of the major casinos in Michigan, so Murren’s comments might have sparked some conversation. Nevada regulators are also looking at DFS.
Around 57 million people in the U.S. play fantasy sports, with a lot of the growth in the industry coming from the DFS sites. The popularity of DFS games, even though the market is still very young, has attracted some heavy hitters in the games industry. Yahoo! recently launched a product, and Amaya Gaming Group, the parent company of PokerStars, is set to launch a DFS product this fall. Amaya acquired Texas-based DFS operator Victiv last month rather than developing its own platform. The two largest players in the DFS space are still DraftKings and Fan Duel.
According to recent analysis by Eilers Research, the DFS market could reach $2.5 billion by 2020, which could be about the equivalent of the U.S. online casino games market, which is expected to grow to $2.7 billion by 2020. Social casino gaming is estimated at $2.9 billion right now.
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