Virginia AG Weighs DFS Games in Sports Wagering Decision

Daily fantasy sports (DFS) is a popular activity across the United States. Despite its popularity, the activity has seen scrutiny recently with more states strengthening their rules applicable to DFS operators and some even outright banning fantasy contests. DFS games in major sports betting markets such as New York and Michigan were banned earlier this year. Now, the activity is under scrutiny in Virginia as well, where it was legalized back in 2016.

Recently, Wren Williams, House of Delegates Member in Virginia filed an inquiry with the Virginia Attorney General Jason Miyares. Williams asked the Attorney General about his opinion on whether DFS or fantasy contest games may be considered as an activity close to sports betting under the laws in Virginia.

In a written opinion, Miyares spoke about the difference between sports wagering and fantasy contests. The Attorney General explained that the two activities were legalized in 2016 and 2020 respectively and are currently regulated separately. “Accordingly, a “fantasy contest” is one in which multiple individual contestants earn points based on statistical, not actual, results of athletes’ performances and a contestant wins upon gathering more points than the other contestants,” he wrote. Additionally, Miyares outlined that “the house” or the DFS operator is “not intended to be one of the individual contestants in a multi-player fantasy contest.”

Similarities and Differences between DFS Games and Sports Betting

In his opinion, the Attorney General highlighted one of the major differences between DFS games and sports wagering. He explained that fantasy contests offer limited options for wagers that are tied to the performance of individual athletes. On the other hand, Miyares said that sports betting offers a wider range of options for wagers, including different aspects of sports events such as point spreads, final scores and others.

However, Miyares outlined in conclusion: “Accordingly, it is my opinion that when a customer places a bet related to individual athletes’ performance metrics, the outcome of which is determined by reference to a contest operator’s established baseline rather than choices made by other customers, the customer is engaged in sports betting and not a fantasy contest.”

The recently released opinion of the Attorney General doesn’t change the established regulations for DFS games. Still, if lawmakers in Virginia plan to implement changes applicable to fantasy contests, they may use his conclusion to support them.

Besides fantasy contests, as noted, the state currently offers sports wagering as well. Virginia launched its sports betting market nearly three years ago and by now there are more than a dozen licensed mobile betting companies offering their services to customers in the state.