There is just one daily fantasy sports app available in Connecticut after FanDuel allowed its provisional license to expire Feb. 27.
FanDuel confirmed to LSR that its daily fantasy sports contests will not return to Connecticut until closer to the NFL season:
“Due to a change in state regulations, FanDuel is no longer able to offer paid-entry daily fantasy contests in Connecticut. Customers may continue to play any free contests with their existing FanDuel account and of course enter paid entry contests should they be traveling to any other eligible states. The new state regulations required us to make some changes to our DFS platform that need engineering time to complete.
“The FanDuel Sportsbook and Mohegan Sun Casino platforms both remain live and comply with all state regulations in Connecticut, and customers are free to continue to use their FanDuel account to wager on either platform. We expect to resume offering paid-entry contests by the start of the NFL season.”
This does not impact FanDuel from offering online casino or sports betting in Connecticut. Further, a new DFS license will not be required as the new licenses for all three gaming options are rolled into one.
What is keeping FanDuel from offering DFS?
According to Connecticut’s Department of Consumer Protections, there was no change in regulation.
That might be true. While the DCP was quick to respond that no regulations changed, the department did not provide the temporary DFS licenses both FanDuel and DraftKings signed back in July.
What is clear is that both operators had issues with various requirements for the DFS apps, which have been treated like gambling apps in the regulations. Both DraftKings and FanDuel sent reps to a Jan. 24 committee meeting to talk about the problems with those kind of requirements but the requests fell on deaf ears. First approved as emergency rules in August, those regulations were approved as permanent the next day.
The heart of Connecticut DFS matter
At the crux of the issue is a 30-minute pop-up requirement to remind users to take breaks and log out. The required use of two-factor authentication is also a concern.
Connecticut is the only state that requires this for DFS, which makes it a bit harder to implement given the single platform used across the country, those company reps said at the January hearing.
“Fantasy is a national endeavor,” Katie Peters, SVP of Public Policy at FanDuel, told the committee. “Customers enjoy competing with family members, coworkers and friends who may or may not live in the state of Connecticut. As such, it’s difficult to change fantasy platforms on a state-by-state basis given the nature of these platforms.”
Chris Cipolla, DraftKings’ senior director of legal and government affairs, also chimed in on the complications:
“Why that’s important is from a technology perspective, the technology that’s used for daily fantasy sports contests is the same technology across the country, whereas with online sports betting and online casino, we have the ability given it is on an intrastate basis to adapt site experiences to address specific regulations that may take place or be adopted in a certain state.”
Only one DFS app until football season?
DraftKings did not comment on the matter. Its app is still available for Connecticut players.
The Connecticut Lottery can partner with a DFS provider but has yet to do so.
It is unclear if FanDuel would have a faster timeline for the changes if an MLB season was guaranteed. Owners and players are deadlocked in negotiations on a new CBA. The first two weeks of the season are already canceled.