The state of Michigan is the latest to join a rapidly expanding roster of states seeking to impose limitations on ‘Pick’em’ fantasy games, a take on daily fantasy sports (DFS) that has come under fire due to its similarity to sports betting. Despite the burgeoning apprehension, the sector’s exceptional growth indicates an ability to adapt to evolving regulations.
The Similarity of Pick’em Games to Sports Wagering Proposition Bets
In contrast to traditional DFS variants, Pick’em-style games are centred on forecasting player metrics. The aim is to guess whether a person’s performance will surpass or fall short of a certain statistical benchmark, much like a proposition bet placed in a standard sportsbook. The game’s structure and prize pool categorisation mean, under the law, they are classed as fantasy sports.
Due to the uncertain legal position of Pick’em-style games, many perceive them as a form of unregulated sports betting. Past month, the Florida Gaming Control Commission issued cease-and-desist notices to multiple fantasy operators proffering such offerings, raising fears about these games’ likeness to mobile sports betting. The New York State Gaming Commission followed suit by initiating rules forbidding pick’em-style games provided by firms such as Underdog, PrizePicks, and Betr.
Michigan Follows Florida and New York in Proposing Limitations
Michigan is the newest addition to the escalating dissatisfaction towards pick’em-style games. Michigan’s Joint Committee on Administrative Rules (JCAR) accepted fresh rules proposed by the Michigan Gaming Control Board to outlaw such offerings within its jurisdiction. The endorsement of these rules without conducting a formal meeting indicates the state’s intention to limit these competitions.
The updated rules are soon to be registered with the Secretary of State’s office, creating a path for future enforcement. While it’s true that fantasy stakeholders have expressed discontent towards this progression and dispute the legality of these games as forms of fantasy sports, the regulation discussion continues. This decision will inevitably influence their regional operations, but these companies should be able to modify and repackage their offerings.
Stakeholders Rally in Opposition to the Decision
The denouncement of Michigan’s decision was voiced by The Coalition of Fantasy Sports, which represents companies like PrizePicks, Sleeper, and Underdog. They expressed dissatisfaction and committed to collaborate with regulators and lawmakers to introduce innovative fantasy sports products that conform to consumer preferences. Backing for the operators has been secured from State Senator Jim Runestad, who pledged to champion Michiganders’ freedom to play pick’em-style fantasy games.
I am committed to joining forces with the gaming commission and fellow legislators to restore access to the legal fantasy sports games that have just been barred from Michiganders.
Jim Runestad, Michigan State Senator
The initiative taken by Michigan to control pick’em-style fantasy games contributes to the ongoing discourse regarding the classification of these competitions and their adherence to prevailing gambling regulations. Despite the rise in states opposing these offerings, the industry maintains exceptional traction, with major sportsbooks introducing new services. The conclusion of this ongoing discussion will almost certainly impact the future of pick’em-style contests in the DFS landscape, thus requiring stakeholders to maintain their adaptability.
