DraftKings, FanDuel Continue Connecticut Operations via Provisional Licenses

After Connecticut expanded gambling via a new bill which came into effect on Thursday this week, concerns were raised about how FanDuel and DraftKings may continue their fantasy sports operations. The Department of Consumer Protection issued provisional licenses for the two operators as well as the Connecticut Lottery Corporation, allowing them to continue operating in the state.

New Gambling and Betting Law in Connecticut Effective From July 1

On Thursday this week, a new bill legalizing sports wagering in Connecticut entered into effect. Besides sports wagering, the new bill expanded gambling and implemented rules about fantasy sports in the state. Under those rules, operators would need to go through licensing process to operate. As a result, concerns were raised that fantasy sports operators such as DraftKings and FanDuel may need to temporarily discontinue their operations.

However, those fears proved to be unwarranted, considering that Connecticut’s Department of Consumer Protection (DCP) issued provisional licenses for the operation of daily fantasy sports in the state yesterday. Provisional licenses were issued to the Mashantucket Pequot Tribal Nation, which is in contract with DraftKings. On the other hand, the DCP has also granted the Mohegan Tribe with provisional license to operate fantasy sports. The Mohegan Tribe has contracted FanDuel for the activity.

Fantasy Sports Operations in the State Continue via Provisional Licenses

In a statement, Governor Ned Lamont commented on the topic by saying that this short-term step allows fantasy sports to continue in Connecticut. Furthermore, he acknowledged that the state moves forward toward modernized gaming.

“This short-term step allows for the continuation of fantasy sports in Connecticut as we continue to move forward to modernize our gaming landscape in Connecticut.”

Governor Ned Lamont

Governor Lamont did not miss saying that Connecticut will have a competitive nation-leading model for in-person and online sports wagering, thanks to the partnerships with the Mashantucket Pequot Tribe, the Mohegan Tribe and the Connecticut Lottery Corporation.

“We look forward to continued work with both tribes and the Connecticut Lottery Corporation.”

Michelle H. Seagull, commissioner, Connecticut Department of Consumer Protection

Michelle H. Seagull, DCP commissioner, revealed that the DCP is proud to be able to approve the provisional licenses. Furthermore, she acknowledged that through this process, consumers are going to be protected while a fair marketplace is being created. In conclusion, Seagull said that the DCP is looking forward to working with the two Tribes and the Connecticut Lottery.

Connecticut Lottery Receives Provisional License

Besides FanDuel and DraftKings, the Connecticut Lottery Corporation has also received a provisional license from the DCP. The Lottery is yet to reveal which operator it is going to partner with for fantasy sports. The DCP revealed that the provisional licenses are set to expire “on the earlier of September 30, 2021,” or a date on which the operators receive a more comprehensive license under the new legislation.

Although FanDuel and DraftKings were allowed to continue their fantasy sports operations, the DCP revealed that payment to Connecticut was made for past operations. As a result, FanDuel paid the state some $325,914.91. On the other hand, according to the DCP, DraftKings paid $832,383.45.