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Virginia has become the first US state to formally approve daily fantasy sports operations within its borders since the industry imploded last autumn.
On Monday, Gov. Terry McAuliffe formally signed into law the SB646 ‘Fantasy Contests Act’ that state politicians approved last week.
McAuliffe’s office issued a statement saying the bill would “empower Virginia to regulate this emerging industry and keep consumers safe from abuses.”
The legislation was signed without amendments, as McAuliffe rejected pleas from the season-long fantasy industry to clarify that the bill refers only to DFS.
Of chief concern to season-long operators is the bill’s requirement of an initial $50k registration fee, which could prove too tall a hurdle for many smalltime fantasy operations.
That hurdle won’t pose a problem for DraftKings and FanDuel, who are likely pitching tents outside the offices of the Department of Agriculture and Consumer Services –
who have responsibility for overseeing DFS in Virginia – to file their applications the minute the DACS opens its doors. Yahoo will also likely apply,
but after that it’s anybody’s guess which third-tier operators will deem it worth their while.
In a particularly untimely display of faux outrage, the Fantasy Sports Trade Association (FSTA) waited until McAuliffe’s ink was dry before expressing concern about the high initial fees making it
“untenable” for smaller operators to participate. Insert shocked – shocked! – emoji here.
SOURCE
On Monday, Gov. Terry McAuliffe formally signed into law the SB646 ‘Fantasy Contests Act’ that state politicians approved last week.
McAuliffe’s office issued a statement saying the bill would “empower Virginia to regulate this emerging industry and keep consumers safe from abuses.”
The legislation was signed without amendments, as McAuliffe rejected pleas from the season-long fantasy industry to clarify that the bill refers only to DFS.
Of chief concern to season-long operators is the bill’s requirement of an initial $50k registration fee, which could prove too tall a hurdle for many smalltime fantasy operations.
That hurdle won’t pose a problem for DraftKings and FanDuel, who are likely pitching tents outside the offices of the Department of Agriculture and Consumer Services –
who have responsibility for overseeing DFS in Virginia – to file their applications the minute the DACS opens its doors. Yahoo will also likely apply,
but after that it’s anybody’s guess which third-tier operators will deem it worth their while.
In a particularly untimely display of faux outrage, the Fantasy Sports Trade Association (FSTA) waited until McAuliffe’s ink was dry before expressing concern about the high initial fees making it
“untenable” for smaller operators to participate. Insert shocked – shocked! – emoji here.
SOURCE
