Fantasy Sports Operators Sound Alarm Over Michigan Rules for Betting-Like Contests

Other states have also moved to quash those kinds of contests, while members of a fantasy sports coalition have pushed back, maintaining they are operating legally.

Geoff Zochodne - Senior News Analyst at Covers.com
Geoff Zochodne • Senior News Analyst
Oct 4, 2023 • 16:35 ET • 2 min read
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A coalition of fantasy operators is vowing to fight on after another state took steps to stamp out contests they deem too much like legal sports betting

Michigan became the latest jurisdiction to take aim at DFS pick ‘em products on Wednesday, as a legislative committee accepted new rules banning contests “that involve, result in, or have the effect of mimicking betting on sports.”

The committee essentially allowed the rules (proposed by the Michigan Gaming Control Board) to come into effect by default, as they didn’t meet and took no action, allowing a 15-day deadline for changes to come and go. 

However, the impending ban apparently comes over the objection of “thousands” of Michigan residents who emailed or phoned state lawmakers, according to the Coalition for Fantasy Sports, a group backed by PrizePicks, Sleeper, and Underdog Fantasy.

Do you hear the people draft?

The coalition said the new rules put forward by the Michigan sports betting regulator "could limit certain types of fantasy sports games that are popular" in the state, although the battle may not be over.

“We will continue to work with regulators and policymakers to provide the innovative fantasy sports products customers want and love,” the companies said in a statement on Wednesday.

The coalition also circulated a statement by State Senator Jim Runestad criticizing the lack of action from the legislative committee. 

“They ignored the voices of Michiganders, bent to the will of big donors and corporate interests, and clearly violated the intent of the original fantasy sports bill as well as the will of the people,” the Republican said in a press release. “Moving forward, I pledge to work with the Gaming Commission and other lawmakers to restore access to the legal fantasy sports games that have just been stripped away from Michiganders.” 

The crackdown continues...

Wednesday’s rule change forms part of a broader crackdown on DFS pick ‘em games, wherein customers select two or more outcomes, such as a player going over a certain point total. States such as Ohio and Florida have moved to quash those kinds of contests, while the coalition members have pushed back, maintaining they are operating legally. 

Even so, similar rules banning prop-like contests were adopted on Tuesday by the New York State Gaming Commission. Those regulatory tweaks were opposed by the coalition as well, to no avail. 

“I do want to note that the commission continues to receive some comments and concerns regarding interactive fantasy sports well outside the public comment period,” NYSGC Executive Director Robert Williams told commissioners. “And we're going to continue to review those and should we determine any of them are appropriate we'll advance additional amendments in the future.”

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Geoff Zochodne, Covers Sports Betting Journalist
Senior News Analyst

Geoff has been writing about the legalization and regulation of sports betting in Canada and the United States for more than three years. His work has included coverage of launches in New York, Ohio, and Ontario, numerous court proceedings, and the decriminalization of single-game wagering by Canadian lawmakers. As an expert on the growing online gambling industry in North America, Geoff has appeared on and been cited by publications and networks such as Axios, TSN Radio, and VSiN. Prior to joining Covers, he spent 10 years as a journalist reporting on business and politics, including a stint at the Ontario legislature. More recently, Geoff’s work has focused on the pending launch of a competitive iGaming market in Alberta, the evolution of major companies within the gambling industry, and efforts by U.S. state regulators to rein in offshore activity and college player prop betting.

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