International edition
September 21, 2020

Regulations address consumer protection issues

Maryland's new DFS rules officially implemented

Maryland's new DFS rules officially implemented
The Comptroller's office announced the daily fantasy sports rules that were proposed in July are now taking effect.
United States | 01/05/2017

The Comptroller's office announced the daily fantasy sports rules that were proposed in July are now taking effect.

W

ith the new year, regulations for daily fantasy sports are taking effect in Maryland. State Comptroller Peter Franchot proposed the regulations in July.

"Daily online fantasy sports games have a significant presence in Maryland," Franchot said in a statement released Jan. 3. "It is entirely appropriate that we enforce basic rules to ensure the games are fair, anti-competitive abuses are declared out of bounds and appropriate taxes are paid."

Mostly, the regulations address consumer protection issues and are similar to rules in other states that have addressed daily fantasy sports.

They include:

  • Participants must be at least 18 years old. Athletes are banned from participating in contests of their own sports. Also banned from participation are DFS company employees and others who are closely associated with daily fantasy companies. Immediate family members are also prohibited from playing.
  • No DFS contests on college or amateur sports.
  • DFS companies are required to identify highly experienced players.
  • Participants are limited to a maximum deposit of $1,000 a month unless they ask for higher limits and can establish they can afford potential losses at the higher limits.
  • DFS companies cannot extend credit to participants.
  • DFS companies must keep player account money separate from operating cash and have a reserve to pay winners.
  • There are prohibitions on marketing that ban the depiction of minors or students in school or college settings.
  • DFS companies are required to notify participants of tax liabilities and are required to comply with state and federal data security laws.

The regulations only apply to DFS contests and not to season-long fantasy sports contests that the comptroller's office describes as "run by companies like Yahoo and ESPN that attract office coworkers, softball teammates or church groups."

In 2012, Maryland actually passed a law that legalized fantasy sports for prizes. Last year, some state legislators wanted to revisit the issue and have the question of daily fantasy go to a statewide referendum. That did not happen.

 

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