Virginia Gov. Terry McAuliffe signed a fantasy sports bill on Monday, making it the first state to enact a law to regulate the industry.
The basics of the bill
The deadline for McAuliffe to act on the bill was Monday. He opted to sign the bill as-is; his other options would have been to veto it, do nothing and allow it to become law, or use a line-item veto to amend the bill and send it back to the legislature.
The bill creates the Fantasy Sports Act. Basic provisions include:
- Operators must register with the Department of Agriculture and Consumer Services.
- Operators must pay a $50,000 fee to register in the state.
- The DACS may investigate violations of the act and is granted powers to enforce it.
- Sites must take steps to prevent employees and their immediate relatives from playing in contests; to ensure security of data at the sites; and to segregate player funds from operational funds, among other consumer protections.
- Sets a minimum age of 18 to play DFS.
- An annual audit of all registered operators is required.
The Virginia bill does not ring-fence the market, and allows interstate play.
While the bill has more teeth to it than the bills being moved forward in a lot of other states, its efficacy at regulating DFS is still in question. It could also serve to authorize a wide-range of sports betting outside of the fantasy sports realm.
Industry and legislator statements
“This is an important day for the future of fantasy sports,” the bill’s sponsor, Senator Ryan McDougle said via a press release that came via FanDuel. “Virginia is leading the way in establishing strong consumer protections while sending a clear message that, with the proper oversight, playing fantasy sports is a skill-based hobby people should be allowed to enjoy.
“Although it is already legal to play fantasy sports in Virginia, this legislation provides additional consumer safeguards. I am that pleased Virginia is the first state to regulate fantasy sports sites, allowing Virginians to continue playing the games they love.”
Griffin Finan, director of public affairs for DraftKings, offered the following statement after the news broke:
“Today, Virginia became the first state in the nation this year to put in place a thoughtful and appropriate regulatory framework to protect the rights of fantasy players. We thank Governor McAuliffe for his leadership and advocacy and are hopeful that other states across the country will follow Virginia’s lead. We will continue to work actively to replicate this success with dozens of legislatures and are excited to continue these efforts.”
And Cory Fox, counsel for policy and government affairs for FanDuel:
“Governor McAuliffe and members of the Virginia legislature took a thoughtful, deliberative approach to establishing a law that safeguards fantasy sports while installing consumer protections. Virginia showed real leadership in being the first state to pass smart regulations this year and we hope to see more states follow Virginia’s lead in the months ahead.”