PIERRE, S.D. (AP) – The thousands of South Dakota residents who wager on daily fantasy sports won’t be the target of felony indictments from state authorities without a clearer directive from the Legislature, South Dakota Attorney General Marty Jackley said Monday.
Jackley said his decision was based in part on uncertainty over whether the contests are predominantly skilled-based or constitute illegal gambling under state law. An industry representative last month told state gambling regulators – who decided they have no authority over online fantasy sports – that the contests are legal in South Dakota.
Jackley said he would like state lawmakers to provide a clearer definition of where daily fantasy sports wagering falls.
“I’m a strong believer that if you’re going to take away somebody’s liberty and freedom, you need to be satisfied the law is clear,” he said.
Gov. Dennis Daugaard told The Associated Press on Monday that he believes wagering on daily fantasy sports should be considering gambling under South Dakota law.
“I think it’s no more a game of skill than blackjack is a game of skill, and so if blackjack’s a game of chance, then I believe fantasy football should be considered a game of chance as well,” he said.
Industry lobbyist Griffin Finan has said more than 25,000 South Dakota residents are estimated to participate in daily fantasy sports contests each year. The industry may pursue legislation to clarify that fantasy sports are exempt from state gambling oversight and impose consumer protection measures on operators.
Finan told the state Commission on Gaming last month that fantasy sports is predominantly based on skill rather than chance, making it legal in South Dakota. Finan spoke for the Fantasy Sports Trade Association, DraftKings and FanDuel, two companies that are the target of the New York attorney general’s office.
Finan, director of public affairs at DraftKings, said in a statement Monday that the company welcomes Jackley’s decision and said the firm looks forward to working with the attorney general and the Legislature.
“We strongly agree that any government authority should review the facts and the relevant law very carefully before taking away one’s liberty and freedom to play the fantasy sports games they love and have been playing for years,” Finan said.
Jackley has reminded South Dakota residents that they could run afoul of other states’ laws, depending on the jurisdiction where the wager is received.
Jackley said Monday he will continue reviewing alternatives such as civil remedies through the courts and action with other state attorneys general.
The games – in which customers pay to put together rosters of real-life professional athletes in order to compete against others in online leagues – have come under heavy scrutiny this year after both Boston-based DraftKings and New York-based FanDuel spent millions of dollars on advertisements pitching the games to casual sports fans ahead of the 2015 NFL season.
A DraftKings employee winning $350,000 in a contest on rival FanDuel earlier this year – beating more than 200,000 other players – raised questions about possible insider trading.
Copyright 2015 The Associated Press.
