Daily fantasy sports deemed illegal in Illinois

Responding to earlier requests for legal clarity from Illinois politicians, the Illinois Attorney General, Lisa Madigan, issued an opinion Wednesday that online fantasy sports is illegal gambling under the state’s criminal code.

The AG has already communicated with market leaders DraftKings and FanDuel asking them to change their terms of use to include Illinois as a state whose residents are not eligible to participate in the online games for cash winnings.

State Representative Mike Zalewski, who recently introduced House Bill 4323 to regulate and tax DFS welcomed the Attorney General’s view and said that it underlined the importance of his bill.

“It’s clear from my perspective what we’re to do in the general assembly to reconcile our law to make sure that players are protected with strong consumer protections but also allow them to play this popular game in Illinois,” he said, adding that he will drive HB4323 in the new year as a priority in hopes of making daily online fantasy sports legal.

A similar measure has also been introduced in the Senate.

There had been no reaction to the AG’s opinion from the DFS operators when we went to press Thursday morning.

Noting the decision, industry observer Joe Brennan tweeted dryly: “Given that the IL lottery is handing out IOUs to winners, if DFS can show $ potential, it’ll be welcomed back w/ open arms.”

In related news, Texas Attorney General Ken Paxton is still considering his perspective on the DFS gambling and legality question.