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Colorado Becomes Fifth State To Enact Fantasy Sports Law In 2016

Colorado became the fifth state to regulate the daily fantasy sports industry, as Gov. John Hickenlooper signed a bill on Friday.

Hickenlooper signs

Hickenlooper publicly enacted the fantasy sports regulation law — H 1404:

That comes a month and a day after the legislature passed a bill, back on May 9.

FanDuel offered this statement commending the law’s passage.

What’s in Colorado’s DFS bill

Basic provisions of the bill include:

  • The Division of Professions and Occupations in the Department of Regulatory Agencies oversees the daily fantasy sports industry.
  • The DPO is responsible for setting licensing and renewal fees; those figures are not set in the law.
  • Operators with less than 7,500 users must only register with the state, they need not apply for a license.
  • Operators that are not classified as “small” must contract with a third party to perform an annual audit.
  • Consumer protections are a part of the bill, including a prohibition on play by operator employees; making operators take steps to make sure data that could affect contests is secure; forcing operators to segregate player funds from operating funds; and allowing players to restrict themselves from playing.
  • Contests involving amateur sporting events — including college sports — are prohibited.
  • A minimum age of 18 is set for DFS users.

The law would appear to allow all current DFS and season-long operators to serve the state, barring an unusually high fee being set for licensure.

Colorado is No. 5

Colorado joined four other states that have turned DFS bills into law:

Missouri’s governor signed a bill into law later in the day.

Other states with DFS action

While the legislatures in a lot of states have adjourned for the summer or through the November elections, several Eastern states are still taking a hard look at DFS regulation:

Dustin Gouker :Dustin Gouker has been a sports journalist for more than 15 years, working as a reporter, editor and designer -- including stops at The Washington Post and the D.C. Examiner.