Tennessee Says Fantasy Sports Contests Are IllegalAll Fantasy Games For Real Money Are Punishable Offenses |
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The attorney general of Tennessee has put his state among the list of places in the county that view daily fantasy sports contests as illegal gambling activity.
According to an opinion released Tuesday, all fantasy sports played for real money fall within the broad definition of “gambling” under Tennessee law. The opinion is arguably not all that surprising considering that Tennessee has long been one of the most unfriendly states to the gambling industry, both tribal and commercial.
The opinion stated that “gambling is contrary to the public policy of this state and means risking anything of value for a profit whose return is to any degree contingent on chance, or any games of chance associated with casinos, including, but not limited to, slot machines, roulette wheels and the like.” Tennessee Attorney General Herbert Slatery acknowledges that there is skill in fantasy sports, but that there is an element of chance that makes it illegal.
“Thus, absent legislation specifically exempting fantasy sports contests from the definition of ‘gambling,’ these contests constitute illegal gambling under Tennessee law,” the opinion stated.
Tennessee makes an exception for the lottery, which is 100-percent chance.
Slatery’s opinion was at the request of House Minority Leader Craig Fitzhugh.
FanDuel, one of the largest players in the DFS space, said in a statement: “A bill to protect fantasy sports and install important industry-wide consumer protections has already passed the state senate and legislators will be hearing from constituents from all across the state with a clear message: do not take away a game we love. We hope members of the legislature will listen to them, and act quickly to modernize state law and bring full clarity to the issue.”
DraftKings echoed a similar sentiment in its statement: "We have been and are in an active dialogue with elected officials to advance thoughtful and appropriate legislation that includes consumer protections to govern our skill-based contests and are encouraged by our progress to date in Tennessee. We call on all of our fans and Tennessee supporters to let their voices be heard in the coming days to show support for this legislation and protect their right to play the games they love.”
The bill on the table is currently sitting in a House committee for consideration. If it becomes law, Tennessee would become the fourth state in the nation to legalize and put some oversight on DFS games, an industry that is expected to grow to $2.5 billion by 2020.
The Tennessee AG opinion comes the same week as the AG in Alabama also declared the games illegal. Tennessee is the 13th state in the country to say DFS sites run afoul of respective state law. Other states who have said the same include Nevada and New York.
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