In a slightly unconventional move for the state, Massachusetts lawmakers have voted almost unanimously to allow DFS operators to offer their services without licensing fees or any new taxation of any kind.
Massachusetts has become the latest in a string of US states to officially legalise DFS, following hot on the heels of New York, Colorado and Pennsylvania.
The regulations allow for operators to legally offer DFS games to consumers in the state on the condition that they follow certain rules set out by the attorney general.
These include establishing minimum age limits of 21 and putting in place monthly deposit limits of $1000 unless players can prove they have adequate funds.
DFS operators are also likely to be barred from creating games based on college or amateur sports.
The move to legalise DFS – which came as part of a wider economic development bill – found unanimous support in the House and was voted against by just one person the Senate.
As part of the new regulation, Massachusetts will establish a Fantasy Sports Commission tasked with examining the impact of online gaming and fantasy sports. There will be no taxes or licensing fees for any DFS operator.
The news will be particularly welcome to DraftKings, a major DFS operator headquartered in the state.
“Today is a special day for DraftKings,” CEO Jason Robins said in a statement. “Boston has always been our home, and on behalf of more than 300 DraftKings employees, we want to thank Governor Charlie Baker and the Legislature for supporting our company in the city we love.
“The legislation that Gov. Baker signs into law today reaffirms that the legendary sports fans in Massachusetts can continue playing daily fantasy games. At the same time, this daily fantasy sports provision gives DraftKings the foundation to further grow our business right here in Boston.”
After signing the bill into law, governor Charlie Baker said: “What I believe we were doing was simply taking what the attorney general put out there as sort of directional guidance and turned into a statute so that a company like DraftKings — which is big and successful in the consumer online business — can continue to be headquartered here in the commonwealth.”
Massachusetts is the eighth state to legalise DFS so far.