The Michigan Gaming Control Board has announced that the previously proposed amendments to Daily Fantasy Sports rules have taken effect.
The rules under the Fantasy Contests Consumer Protection Act were submitted to the Michigan Legislature’s Joint committee on Administrative Rules took effect today after they were filed prior with the Office of the Great Seal.
The changes are to Michigan’s Fantasy Contests Consumer Protection Act, MCL 432.501 to 432.516. This Act, which became law in 2019, will be updated to ban the debated pick’em style contests that critics say are similar to proposition-style sportsbook bets. Both retail and online sports betting, along with online casinos, are legal in Michigan.
The law for fantasy sports operators permits contests based on athletic events, which are defined as “a real-world professional, college, or nationally recognized sports game, contest, or competition that involves the skills of the athletes and where the game’s outcome directly relies on the athletes’ performances.”
It continues, to outlaw the aforementioned pick’em contests. The release reads that “fantasy operators or licensed management companies may not offer any contests that have the effect of mimicking betting on sports, or that involved ‘prop bets’ or the effect of mimicking proposition selection.”
MGCB Executive Director, Henry Williams, commented: “Fantasy contests, like any other form of competitive gaming, thrive on rules and regulations. The Administrative Rules, which were reviewed by the Michigan Legislature, provide a level playing field for all fantasy contest operators and participants, and will help ensure that fairness, transparency, and integrity are upheld.”
The MGCB, post rule enforcement, will undergo a review of all Daily Fantasy Sports operators offering to ensure compliance.
Michigan is not the first state to alter rules surrounding proposition-style fantasy bets. New York has also outlawed the wagers, and the contests remain under pressure in several more.
One operator, Underdog, has vehemently denied breaking any rules, both on a state and federal level. The company released a whitepaper outlining its legal defense, and has alleged regulated sportsbook operators such as FanDuel and DraftKings are curbing fantasy sports innovation through pressure on regulators to limit fantasy sports.