The state of Maryland has lay down the ground rules for daily fantasy sports, which according to some analysts will level out the playing field between big and small time operators.
According to the Legal Sport Report, the regulations provide baseline oversight of the industry and consumer protections in the Old Line State.
“Daily online fantasy sports games have a significant presence in Maryland,” state Comptroller Peter Franchot, who in July 2016 announced the proposed regulations, said. “It is entirely appropriate that we enforce basic rules to ensure the games are fair, anti-competitive abuses are declared out of bounds, and appropriate taxes are paid.”
Unlike the regulations implemented in other states, Maryland’s ground rules to be more DFS-friendly. The state of Maryland, according to some analysts, levels the playing field between small players and DFS giants by not requiring these operators to complete any registration process or pay any registration fee.
Maryland’s regulation is in direct contrast with the laws passed in Indiana and Virginia that require daily fantasy sports companies to pay upwards of $50,000 in licensing fees. Most small players in Indiana and Virginia complain that the regulation only favors daily fantasy sports giants DraftKings and FanDuel.
The Old Line State also joins the states of Indiana, Colorado, Missouri, New York, Tennessee, and Virginia in allowing 18-year-old players to participate in the DFS. Maryland also requires operators to identify “experienced players.”
Just like in the states of Colorado, Indiana, Missouri, and New York, Maryland prohibits DFS operators from using data related to college sports.
For new players, Maryland imposes an initial monthly deposit limit of $1,000. The state, however, gives them leeway by allowing players to “request a fantasy sports operator to temporarily or permanently increase a deposit limit above $1,000 per calendar month” subject to a series of conditions, including site review of the requester’s financial assets or income.
The move of Maryland to implement a far more stringent default limit on player deposits is seen as a safety net for pathological gamblers and those of limited means.
Despite the implementation of such regulations, Maryland has yet to resolve the legal clarity for the DFS industry. There were attempts to formally legalize DFS in Maryland without amending the state constitution but it failed to be included as a referendum on the November ballot.
