Good News, Bad News For DFS In The South
Legal Sports Report

Daily Fantasy Sports Weekly Wrap: One Step Forward In Tennessee, Step Back In Alabama

daily fantasy sports news wrap Tennessee Alabama
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Here’s a quick look back at what happened this past week, and what to watch for in the coming week in the world of the daily fantasy sports industry:

What happened this week in DFS

Tennessee joins Indiana, Virginia: The Volunteer State became just the third state to pass legislation that regulates the daily fantasy sports industry this week after Gov. Bill Haslam signed a bill into law.

In at least one way, Tennessee is a pioneer, becoming the first state to render a negative attorney general opinion moot by passing legislation.

In addition, the Tennessee bill appears to be friendlier to smaller operators than the Virginia and Indiana legislation, placing a 6 percent levy on revenue generated by the state’s residents. The bill will take effect on July 1.

DraftKings, FanDuel exit Alabama: DraftKings and FanDuel will no longer accept payment from Alabama residents, complying with with a cease and desist order issued by the state’s attorney general in April. Alabama makes 10 states where most DFS sites do not operate.

Alabama had two active bills regarding the legalization and regulation of DFS, but both died.

Goodell takes to the airwaves: In an interview on ESPN’s Mike & Mike radio show, Roger Goodell explained the NFL’s view on daily fantasy sports.

For one, he said that DFS does not hinge on the outcome of games, which makes it altogether different than conventional sports betting.

The NFL commissioner said: “For our standpoint, we do not see the same risk to the integrity of the game,” with DFS. You can listen to the interview here.

What to watch for in DFS

FanDuel to go dark in Texas: FanDuel will cease operations in Texas on Monday after the DFS giant and the Texas attorney general reached a settlement in March.

Under the deal, FanDuel agreed that it would no longer offer its paid games in Texas. In return, the AG’s office agreed not to pursue legal action against FanDuel over operation of its contests.

DraftKings, though, has filed suit in Texas and will continue to operate.

Mississippi bill still on governor’s desk: Within the next two weeks, Gov. Phil Bryant is expected to sign Mississippi legislation that would make it the fourth state to pass DFS regulation, joining Virginia, Indiana and Tennessee.

Like Tennessee, the attorney general in Mississippi issued a negative opinion on the legality of DFS, but that opinion would be made moot should Bryan sign the bill.

Mississippi is but one of several states moving closer to comprehensive regulation.

Zack Hall
- Zack Hall has been covering sports and business for more than 16 years as both a reporter and editor. He has won numerous awards with stops that include the Reno Gazette-Journal and the Bend Bulletin.
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