Maine Becomes The Fifteenth State to Legalize DFS
The legal status of daily fantasy sports in the US continues to playout on a state by state basis and not on a federal level. Much like online gambling it seems that individual states are being compelled to introduce legislation that will either forbid, permit or adopt a policy of inaction when it comes to the issue of regulation daily fantasy sports. The latest state to regulate and legalize DFS is that of Maine which makes it the fifteenth state to formally regulate DFS.
According to reports from Legal Sports Report the bill names “An Act To Regulate and Tax Sports Activities in Maine” has formally come into effect after Governor Paul LePage did not act on the legislation after it was submitted. According to Maine law if the Governor does nothing to legislation introduced for a month the bill automatically becomes law. The Bill was introduced by Senator Roger Katz and co-sponsored by State Representatives Jeffrey Timberlake, Bradlee Thomas Farrin and Jared Golden and State Senators Andre E. Cushing III, Troy Dale Jackson, Garrett P. Mason.
Having been introduced in June, the new bill which has become law has classified DFS as a game of skill and not chance. This means that it does not fall under the state prohibitions of gaming. In terms of the bill the state’s Gambling Control Unit will regulate the relevant rules. Some of the highlights of the bill are the exempting of operators from licensing fees if they generate less than $100k in revenues This is aimed at giving them a fair chance against the major DFS players like FanDuel and DraftKings. Any operator earning more than $100k in revenues will have to pay a $2,500 licensing fee and well as a tax rate of 10% of their gross revenues.
Consumer protections are also included in the bill with minimum age requirements of players being 18. In addition all contests relating to amateur and collegiate events will be barred. The need to protect consumers funds safe is also addressed with the provision that players funds be kept separate from operating funds,