The Attorney General’s Office has banned online sports sites DraftKings, Inc., FanDuel, Inc., and Yahoo! Inc.
The department asked that their respective online fantasy sports activities are not permitted under Delaware law, and asked that the companies add Delaware to their respective online lists of states in which players are not legally permitted to win cash prizes.
DOJ had initially notified state regulators in March of this year that these types of games were not permitted under Delaware law.The department initially refrained from taking formal action because certain online fantasy sports companies indicated that a change in Delaware law would be proposed in the state legislature. However, with the General Assembly’s session expiring on June 30th and no such changes in the law taking place the department sent formal notices to the companies Thursday.
According to the AG’s office, The Delaware Constitution clearly articulates the general prohibition of gambling in the State. Specifically, Article II, section 17 prohibits “[a]ll forms of gambling” except “(a) Lotteries under State control for the purpose of raising funds.” Online fantasy sports games that are offered in Delaware are not presently “under State control.”
“In other words, real-life players are human and human behavior is unpredictable. This is why chance – and not skill – is the dominant factor in online fantasy sports contests and why these contests are illegal in Delaware,” a release from the AG’s office stated.
The department will not demand that currently available online fantasy sports contests that do not include a requirement of payment for participation and the possibility of a monetary reward cease and desist operation in Delaware.
“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 Department of Justice must enforce the law,” the release stated
