State of Delaware Orders DFS operators To Cease Real Money Contests
Another setback for the Daily Fantasy Sports operators is coming our of the state of Delaware. The Attorney General in the state has sent cease and desist letter to DraftKings and FanDuel stating that DFS is not permitted under state law.
Both companies have been ordered to add Delaware to the growing list of states where real money prizes are prohibited. State regulators had already notified operators back in March that DFS was illegal but due to pending legislation at the time no formal legal action was taken by the state. However now with the General Assembly’s session ending on June the 30th, there is no possibility of any legislation that would permit real money DFS from being passed. According the Justice Department of Delaware there is a general prohibition of gambling in the state except for lotteries under state control.
According the DOJ, daily fantasy sports is based on chance and not skill as DFS operators insist. The thinking is that the DFS players have no control on how payers will actually perform and that “real life players are human and human behavior is unpredictable”.
Delaware residents will still be able to enjoy contests that do not require a fee. It remains to be seen how DraftKings and FanDuel will react but based on their recent history they will most likely not oppose the ruling and work with authorities until a wider legal solution is found.