A major U.S. legal sports betting market is implementing new rules for fantasy contests.
The Michigan Gaming Control Board, which oversees casinos, fantasy sports, and online betting sites in the Great Lakes State, has put into effect new administrative rules for fantasy sports contests. The rules, which are required under the Fantasy Contests Consumer Protection Act, provide the regulatory framework and ensure fair play for fantasy contests in Michigan.
“Fantasy contests, like any other form of competitive gaming, thrive on rules and regulations,” said MGCB executive director Henry Williams. “The Administrative Rules, which were reviewed by the Michigan Legislature, provide a level playing field for all fantasy contest operators and participants, and will help ensure that fairness, transparency, and integrity are upheld.”
Michigan’s rules on fantasy contests came after a legislative committee accepted new terms, which ban contests “that involve, result in, or have the effect of mimicking betting on sports.”
The rule has been met with backlash from Michigan residents who have voiced their sentiments to state lawmakers, according to the Coalition for Fantasy Sports — a group backed by fantasy operators PrizePicks, Sleeper, and Underdog Fantasy. Several marquee sportsbooks in the U.S. have also taken varying stances on fantasy contests that resemble player prop betting markets.
Steady profits
Michigan sports betting has driven favorable profits for operators in recent months.
The state’s legal sports betting handle reached $228.4 billion in August — up from $208.4 million in July. Despite the increase, operators generated $16.2 million in net revenue in August compared to $16.3 million for the month prior due to deductions. Michigan’s sports betting handle in August provided $1 million to the state with $383,000 allocated toward local cities.
FanDuel emerged as the top sportsbook in Michigan for August with a $76.1 million handle while DraftKings finished second at $57.8 million. BetMGM closed third with $36.4 million.
Like-minded
New York is also implementing new rules for fantasy sports contests.
Earlier this month, the New York State Gaming Commission approved new rules for fantasy sports that ban contests “that have the effect of mimicking proposition betting.” Gaming regulators in Florida and Ohio are also exploring changes to fantasy sports contest rules.
