Illinois AG: Daily fantasy sports is ‘illegal gambling’

The Illinois attorney general late Wednesday issued an opinion declaring daily fantasy sports illegal under state gambling laws. 

Attorney General Lisa Madigan ruled that sites like DraftKings and FanDuel would be breaking state gambling laws if they continue to operate in the state. She also said that people in Illinois who wager through those sites would be breaking the law. 

{mosads}“Absent legislation specifically exempting daily fantasy sports contests from the gambling provisions, it is my opinion that daily fantasy sports contests constitute illegal gambling under Illinois law,” Madigan wrote in her opinion. 

Daily fantasy sports websites have come under increasing pressure at the federal and state level in recent months. The websites have boomed in recent years, by taking advantage of a carve-out in federal gambling law that exempts fantasy sports. 

Like traditional fantasy sports games, DraftKings and FanDuel allow customers to draft a roster of players to compete. While traditional leagues carry on throughout the season, the daily fantasy games allow customers to handicap a single day’s games and receive a quick payout. 

Madigan acknowledged the fantasy sports exception in the federal Unlawful Internet Gambling Enforcement Act, but said states can develop their own laws. 

Residents in a handful of states already are prohibited from entering fantasy sports contests and winning payouts through DraftKings or FanDuel. The companies, for example, are battling a recent ban in New York. 

“The statutory language is straightforward and unequivocal,” Madigan said about Illinois state law. “It clearly declares that all games of chance or skill, when played for money, are illegal gambling in Illinois, unless excepted.”

She said one state exemption that allows contestants to win prizes does not apply. 

Her opinion came in response to a pair of state lawmakers. 

Legislation is currently pending in the state legislature to specifically exempt fantasy sports from gambling restrictions. At least four lawsuits against daily fantasy sports websites are pending in the state. 

FanDuel said it was perplexed by the opinion, arguing “Chicago may be the best sports town in the country.”

“Hopefully, the legislature will give back to the people of Illinois the games they love,” the company said in a statement. “A sports town like Chicago and a sports-loving state like Illinois deserves nothing less.”