Rhode Island attorney general says daily fantasy sports legal under state law; DFS remain illegal in other states

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Rhode Island's attorney general declared daily fantasy sports legal under the state law. However, Daily fantasy Sports (DFS) remain banned in other states in the US.

DFS are pronounced legal under the law in Rhode Island, reported Star Tribune. Attorney General Peter Kilmartin said that DFS make use of both chance and skill, and are therefore legitimate. The state's legislators have put forward a new law to license operation of DFS websites.

Kilmartin called on lawmakers to enforce strict regulations on DFS websites to prevent issues surrounding gambling. These concerns include criminal gambling, participation of minors, and gambling addiction. The rapid growth of the DFS industry grabbed the attention of state authorities and regulators.

DFS involves gamers selecting real-life athletes to add to their virtual team. They are awarded points based on the statistical performance of their chosen players in real-life competitions. The fantasy sports industry claims that DFS are games of skill rather than chance, as what critics pointed out. DFS leagues began to assemble around a loophole in a federal law that addresses online gambling in 2006, called the Unlawful Internet Gambling Enforcement Act.

Though DFS are legal in Rhode Island, they remain illegal in other states including Vermont, Hawaii, Texas, Arizona, Louisiana, Montana, Hawaii, Iowa, Texas, and Washington. Las Vegas Review-Journal reported that court decisions to declare DFS illegal in New York and Illinois are being challenged. In Nevada, DFS companies are required to have licenses to operate in the state.

Vermont lawmakers are discussing to pass a bill that would provide popular games exemption from the law. Anti-gambling laws in the state prohibit betting on games of chance and skill. In Massachusetts, people aged 21 and below are not allowed to participate in DFS. Promotion of the games is banned from university grounds and college sports are not allowed in the DFS leagues.

Recorder reported that there are roughly 56.8 million DFS players in 2015 in Canada and the US, based on statistics by the Fantasy Sports Trade Association. The industry earns more than $3 billion in admission fees. Big companies like Disney and Comcast are investing in DFS.

Some of the biggest DFS companies are DraftKings and FanDuel. Lawmakers are urged to impose regulations to protect consumers and the youth from criminals and gambling addiction.

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