Attorney General Maura Healey is looking into the legality of Draft Kings — a hyper-popular fantasy sports website that allows users to gamble on teams they create with real-life players.
“The point is this: This is a new industry. It’s something that we’re reviewing, and we’ll learn more about it,” Healey told the State House News service, referring to the Boston-based company.
Healey’s office would not expand on her statements and declined to define what the AG meant by “review.”
Online sports wagering and online gambling was outlawed the Professional and Amateur Sports Protection Act more than 20 years ago. However, the Unlawful Internet Gambling Enforcement Act, which passed in 2006, carved out an exemption for fantasy games.
Whether or not it gives a loophole to gamble on daily fantasy sports is a murky area of law. States have the ability to make their own determination as to the legality of daily fantasy sports contests, according to Daniel Wallach, a sports law attorney.
Draft Kings insists it is a game of skill and not a game of chance — a distinction that it says makes its business legal.
“The legality of daily fantasy sports is the same as that of season long fantasy sports. Federal Law and 45 of the 50 US States allow skill based gaming,” Draft Kings says on its website. “Daily fantasy sports is a skill game and is not considered gambling.”
