Daily Fantasy

DFS Ruled Illegal in Alabama by Attorney General

By April 6, 2016April 8th, 2016No Comments

Another one bites the dust.

In the world of DFS it feels like these states are starting to drop like flies.

Alabama is the next state to rule that DFS is illegal under state law.

On Tuesday, April 5th, Alabama Attorney General Luther Strange announced that his office found that daily fantasy sports constitute illegal gambling and that he had issued cease and desist letters to DraftKings and FanDuel.

AG Strange becomes the 9th attorney general to reach this conclusion, joining Nevada, Texas, Hawaii, Mississippi, Georgia, Illinois, New York and Vermont.

What are these guys thinking!? I just don't see it. But then again, that's why I'm not an attorney general I guess.

What You Need to Know

The attorney general said that DraftKings and FanDuel have until May 1, 2016 to pull out of the state. For those of you that are enjoying DFS from the great state of Alabama, that's your deadline.

While he didn't specifically say that he sent cease and desist letters to other DFS operators in the state, we expect the other players in the market to quietly exit.

We're not sure at the moment if DK and FD will ride off into the sunset and comply or if they will denounce the AG's decision and fight it in court. We've seen both happen recently, so the ball is in the air at the moment.

For now we'd recommend enjoying your DFS while it lasts.

This is what the AG said via his press release:

As Attorney General, it is my duty to uphold Alabama law, including the laws against illegal gambling,” Attorney General Strange said. “Daily fantasy sports operators claim that they operate legally under Alabama law. However, paid daily fantasy sports contests are in fact illegal gambling under Alabama law.”

In Alabama, an activity constitutes illegal gambling if a person stakes something of value on a contest of chance, even when skill is involved, in order to win a prize. …

There is, of course, a measure of skill involved in creating a fantasy roster. But in the end, contestants have no control over the performance of the players on their rosters. For example, a player could fall ill before a game, be injured in pre-game warm-ups, or miss a large portion of the game due to injury or equipment failure. All of these factors, and many more, are outside the control of a fantasy sports player. Thus, the results of paid daily fantasy sports contests depend to a large degree on chance. This is the very definition of gambling under Alabama law.

Nick Schreck