After its success in New York last week DFS operators suffered a blow it has been announced that they will no longer be allowed to offer real money DFS games in the state of Delaware.
The Delaware Department of Justice has issued formal releases to companies operating in the state such as DraftKings, FanDuel and Yahoo stating that Delaware residents should be added to the list of those that are unable to receive any cash prizes on their platforms.
The position of Attorney General Matthew Denn is that the DFS games do not constitute games of skill as the likes of DraftKings, FanDuel and the rest have been arguing but are far more based on luck.
The statement from the office said that whilst it is recognised that there is an element of skill in selecting the players and line ups, the DFS players have “no role in how these players actually perform once the real-life games or events occur.”
It went on to justify the point by justifying its take by saying that “the most skilled participants might lose and the less skilled participants might win” because “real life players are human and human behaviour is unpredictable.”
State regulators were first notified back in March that DFS was illegal gambling under Delaware state law, but no action was taken at the time “because certain online fantasy sports companies indicated that a change in Delaware law would be proposed in the state legislature.”
The statement concluded: “We are certain that many Delaware residents and visitors would enjoy participating in the full array of fantasy sports contests, including those that require payment for participation and have cash awards.
“But until such contests can be offered legally, the DOJ must enforce the law.”
Whilst this decision by the Delaware Department of Justice decision will harm DFS operators, it doesn’t overshadow the major victory that was New York’s choice to legalise real money DFS in the state.
DraftKings declined to comment on the matter at hand.