DFS Industry Losses Another State

Daily Fantasy Sports were supposed to be booming and riding an all-time high. Instead, the industry has watched a number of state legislative sessions pass without favorable laws. The latest state was Alabama, which this week ended its session without a vote on H 354. That bill would have legalized and regulated paid games in the state.

While Alabama isn’t as big as Texas or Florida it was a key state for DFS companies. That’s because most pulled out from Alabama last year when the Attorney General said DFS was illegal. He ordered FanDuel and DraftKings to stop taking paid entries from the state. With no vote on the bill that ruling will likely stay in place.

Last year saw eight states put new laws favorable to Daily Fantasy Sports in the books. It was believed that 2017 would be more of the same. But it hasn’t worked out that way.

The Texas Attorney General Ken Paxton said there is some chance involved with Daily Fantasy Sports. Not that it is entirely based on chance, but he said luck does play a role. “Participation in daily fantasy sports leagues is illegal gambling ‘under section 47.02 of the Penal Code.,” he wrote.

It’s not all gloom and doom for DFS companies. Ohio looks like it will pass a favorable bill this year. It doesn’t hurt that Ohio is ranked No. 7 in state population, but is still below half the population of Texas. Florida has 8 million more people, making those two states hurt a bit more.

Vermont may also pass a bill, but it’s unlikely the DFS companies will get excited over that. Only Wyoming has fewer people than Vermont. But it still helps, at least as a tool to help convince other states as to its legality. If there’s safety in numbers each state is a win for DFS companies.