Special Commission recommends regulating DFS as online gambling

 The draft appears fairly complete. But the Commission will hold off on a final vote until Monday, July 31, in order to give members a chance to fully review the document. According to Statehouse News Service (paywall), the Commission is recommending the legislature permanently legalize daily fantasy sports. In doing so, it advised placing DFS under the umbrella of “online gaming.”

The Commission also recommended holding off on legalizing other forms of online gambling… for now. “At this time, the Special Commission recommends legalizing DFS as a subset of online gaming and enacting legislation that would put into law the proposed regulatory, governance, and taxation system described above,” the report says.

“However, the Special Commission recommends not legalizing more expansive online gaming at present, particularly in consideration of the fact that two resort casinos are not yet open, but urges re-evaluation in the near future and legislative oversight to continue to evaluate online gaming and activity at state and federal levels.”

The Commission’s recommendation to hold off on legalizing online poker and online casino games is a bit disheartening. However, if the legislature follows the Commission’s advice and develops a broad category of online gaming, including DFS, the legalization of other forms of online gambling becomes a matter of when, not if.

Furthermore, depending on the structure, and what authority lawmakers grant the Massachusetts Gaming Commission, legislation may not be a requirement of legalization.

Lotteries in several states have the authority to take their games online without legislative approval. If Massachusetts grants this same type of authority to the MGC, we might see a similar thing happen with online gambling. A broad definition of gaming is a win for the MGC.

The recommendation to include DFS as a subsection of online gaming isn’t surprising. MGC Chairman Stephen Crosby, one of the members of the Special Commission, has long advocated for a nimble approach to regulations. Crosby feels this approach bypasses the skill versus luck arguments. It also allows regulators to quickly adjust to an ever-evolving industry.

In an October 2016 interview, Crosby explained his rationale for wanting a broad definition of gambling along the lines of “purchasing an opportunity to win an award on a future event”: “There have been millions of dollars spent litigating whether DFS is a game of skill or a game of chance, and if it’s some skill is it enough skill to make it avoid the regulations of games of chance. That just makes no sense to me.”