Following conversation about whether or not fantasy sports industries qualify as gambling, the office of Massachusetts Attorney General Maura Healey is conducting an investigation on DraftKings and FanDuel.
DraftKings allows users to compete for cash prizes in contests related to baseball, soccer, racecar and hockey sporting events, according to its website, which also says that playing on DraftKings is considered legal in a majority of states.
Cyndi Gonzales, spokesperson for Healey, said in in an email that the attorney general supports regulation for daily fantasy sports.
“As [Healey] has said, she believes strongly that there must be a strong legal and regulatory framework in place for this new industry,” Gonzales wrote.
Gonzales added that the office will investigate daily fantasy sports and will present its findings and recommendations, including suggestions for strong consumer protections.
“Our focus remains on protecting consumers, protecting minors and addressing problem gambling,” Gonzales wrote.
Massachusetts is not the first state to attempt to regulate daily fantasy sports, The Daily Free Press reported Sep. 24.
“DraftKings subscribers located in Arizona, Iowa, Louisiana, Montana and Washington are currently ineligible to receive prizes from the website due to state laws, even with the existence of the Unlawful Internet Gaming Enforcement Act, a federal law that sets standards for fantasy sport play,” The Daily Free Press reported.
New York Attorney General Eric Schneiderman sought an injunction Tuesday, according to an official release, against DraftKings and FanDuel.
The release stated that daily fantasy sports websites pose risks to New York residents and violate anti-gambling laws.
“Experts in gambling addiction and other compulsive behaviors have identified [daily fantasy sports] as a serious and growing threat to people at risk for, or already struggling with, gambling-related industries,” the release stated.
Prisca Castanyer, an economics professor at Northeastern University, said participating in fantasy sports on websites such as DraftKings may require certain abilities, but does not make it an acceptable activity.
“I guess [Gov. Charlie Baker] has a point that DraftKings does require a certain degree of skill to be good at it … just because it requires skills does not make it not gambling,” Castanyer said. “Personally, I do not participate in gambling, but we really need to have regulation of daily fantasy sports. It’s crazy how people spend that much money in the game.”
A set of regulations, Castanyer said, is still required in the fantasy sports industry, especially when a shutdown of the industry would create extreme damage.
“We cannot stop gaming from happening. That is a reality,” Castanyer said. “But regulation is always important in situations like this one, where everybody’s interest is regarded, otherwise there will always be people who takes advantage of some loopholes. The money we got from regulation can be used in improve social welfare.”
A petition was filed with Healey’s office that would require the Massachusetts Gaming Commission to request applications for gaming establishments, according to the attorney general’s website. The petition was an attempt to allow gambling to take place at the Suffolk Downs racetrack in East Boston.
While some residents said that individuals should be allowed to gamble if they so choose, others said that gambling is harmful to the community.
Devon King, 22, of Brighton, said that the government should give citizens the freedom to make their own decisions regarding DraftKings.
“Massachusetts already has regulation on casinos, so I think the government should just allow people to do whatever they want to do at home,” he said.
Cody Jacobucci, 21, of Fenway, said the state should put regulations on fantasy sports if that means generating more money for welfare.
“It all depends how big the issue is,” he said. “If there isn’t that much revenue, then it will not [be] worth it for the government to get involved. But if it’s a big industry and we could get a little bit of money from it, that helps the works at school. Then, [regulation] might not be that bad.”
Joshua Hey, 23, of Brighton, said he used to play FanDuel but stopped after reading articles regarding the company’s motives.
“I play fantasy sports because I like sports, but I quit as soon as I saw [the articles],” he said. “It’s not about sports anymore. It’s about stealing my money.”
