In the United States, daily fantasy sports (DFS) are a widely embraced pastime. However, the activity has recently come under severe criticism, leading to higher restrictions from numerous states on DFS providers and even the complete prohibition of fantasy competitions. Particularly, DFS operations in predominant sports betting regions such as New York and Michigan have been halted earlier this year. Currently, the operations are also being questioned in Virginia, where they were sanctioned back in 2016.
Wren Williams, a member of the House of Delegates in Virginia, recently sought the counsel of Virginia Attorney General Jason Miyares regarding DFS. Williams questioned Miyares on whether fantasy contest games may be aligned with sports gambling under the state’s legislation.
Miyares, in a formal written response, distinguished between sports betting and fantasy competitions. The Attorney General clarified that both activities, legalized in 2016 and 2020 respectively, are governed independently at the moment. He further elaborated, a “fantasy contest” indicates a competition in which individual participants accumulate points based on statistical, not physical, achievements of athletes, and a participant triumphs by amassing more points than their competitors. Furthermore, he specified that “the house” or the DFS suppliers are not intended to partake as individual contestants in a multiplayer fantasy competition.
Parallels and Contrasts between DFS Games and Sports Betting
While sharing his perspective, the Attorney General highlighted a critical discrepancy between DFS games and sports betting. He clarified that fantasy contests provide limited betting alternatives that are linked to individual athletes’ performances. Contrarily, Miyares perceived sports betting to provide a broader array of wagering choices, covering various aspects of sports matches including point spreads, final scores, among others.
However, Miyares ultimately stipulated: “Therefore, in my view, when a client stakes a bet related to individual athletes’ performance metrics, the result of which is determined by a contest operator’s preset reference point rather than selections made by other clients, the client is engaging in sports betting rather than a fantasy contest.”
The Attorney General’s opinion, recently made public, does not alter the existing rules for DFS games. Nonetheless, if Virginia’s legislators intend to introduce changes relevant to fantasy competitions, they might leverage his conclusion as a supportive basis.
Apart from fantasy contests, as stated before, the state of Virginia also facilitates sports betting. Virginia’s sports gambling market was launched almost three years ago and now there are over a dozen licensed mobile betting firms providing their services within the state.
