Daily Fantasy Sports Now Banned In Illinois

The popularity of daily fantasy sports (DFS) betting in the US was skyrocketing in 2015, until the aggressive advertising tactics of industry leaders FanDuel and DraftKings attracted the attention of the country’s lawmakers. Subsequently, a number of individual states began to scrutinize fantasy sports to determine whether the game should be considered a form of gambling, with Nevada and New York having since ruled the practice illegal under state law.
With just a few days left before the end of the year, the state of Illinois has now joined these two states, dealing a further hammerblow to the once thriving industry. The decision was announced on Wednesday December 23rd by the Illinois Attorney General Lisa Madigan, who stated her opinion that DFS contests should be considered “illegal gambling under Illinois law.” Cease-and-desist instructions have subsequently been sent to Fan Duel and DraftKings, and as the letter states:
“We expect that both Fan Duel and DraftKings will amend their Terms of Use to include Illinois as an additional state whose residents are not eligible to participate in contests unless and until the Illinois General Assembly passes legislation specifically exempting daily fantasy sports contests.”
While continuing the worrying trend that started in 2015, Illinois’ ban will also be particularly painful for DFS operators considering it is the country’s fifth most populous state, and home to 12.9 million people. Nevertheless, the companies are not quite ready to throw in the towel yet, and appear set to request a stay of execution by appealing the decision, similar to the situation which currently exists in New York. As a statement subsequently released by DraftKings explains:
“The company intends to promptly seek a judicial resolution of its right to offer daily fantasy sports contests to Illinois residents. As it does so, it will continue to abide by all relevant laws and will follow the direction of the courts. Pending that resolution the company will preserve the status quo.”
At the heart of the debate, DFS companies continue to insist that their product is a game of skill and should therefore be exempt from gambling laws. Nevertheless, this hasn’t stopped both DraftKings and FanDuel applying for gambling licenses in the UK’s regulated gambling market.