Massachusetts Changes DFS Status To Gambling

Published Wednesday, August 02, 2017 -
Massachusetts Changes DFS Status To Gambling

Daily Fantasy Sports betting has created problems for regulators all over the world mainly because the activity for some regulators may be considered real money gambling. The skill game debate carries on in jurisdictions such as the state of Massachusetts in the USA where the Massachusetts state commission voted recently to recommend that DFS games be classed as a form of gambling and not a game requiring skill.

The 5 to 3 vote on the issue is a big snag for DraftKings, the industry leader which is headquartered in Boston, Massachusetts.

DraftKings will now have to fight in its home state to keep its status as a non-gambling company. A report conducted by the state legislature’s Special Commission on Online Gaming, Fantasy Sports Gaming, and Daily Fantasy Sports claims that the distinction between luck and skill doesn’t matter when money is on the line.

The concept may have to be overhauled should the classification change for DraftKings and FanDuel the competition from a game of skill to gambling. The sector will have additional tax liabilities and it could be difficult to locate payment processors willing to accept DFS betting transactions. It is already illegal for payment processors in Massachusetts to accept transactions from internet betting sites. DraftKings Director of Public Affairs James Chisholm spoke to the Boston Globe,

“The commission’s actions today, as we and our partners in the fantasy sports industry pointed out time and time again, could restrain our company’s ability to thrive and create jobs here in Massachusetts,”

Massachusetts Gaming Commission Chairman Stephen Crosby voted “yes” on the issue. The committee didn’t recommend banning daily fantasy sports. The purpose of the report was, instead, to determine if the popular game should be classified as a form of gambling and fall under the Gaming Commission’s umbrella. Some US jurisdictions have banned the activity while others have made it legal.

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