"West Virginia Attorney General declares unclear stance on opposition to home-based Daily Fantasy Sports"
News Article:
Following a recent opinion by Attorney General JB McCuskey, the legal status of daily fantasy sports in West Virginia remains ambiguous but generally favorable to DFS operators.
The AG's opinion, issued on August 6, 2020, emphasized that DFS, including "against-the-house" formats like PrizePicks, are not considered sports wagering under existing state law because fantasy sports are explicitly excluded from the definition of sports betting in West Virginia's statutes.
Key points explaining this legal status:
- The 2016 West Virginia AG opinion referenced a bill that never became law, leading to confusion. However, the current 2020 opinion clarifies that the West Virginia Lottery Sports Wagering Act of 2018 does not define fantasy sports as sports betting.
- The West Virginia Lottery Commission’s earlier cease-and-desist order against PrizePicks was based on an interpretation linked to a bill that failed to pass. McCuskey criticized this enforcement action as legally dubious due to the lack of statutory authority for the Commission to define sports wagering terms independently.
- The AG's advice to lawmakers is to pass clear legislation defining fantasy sports to resolve lingering uncertainties and regulatory friction.
- Despite the legal uncertainty, DFS operators like PrizePicks view the opinion as a positive confirmation of their lawful status in the state, and they are continuing to operate and expand, backed by licenses elsewhere and recognized compliance certifications.
However, it is important to note that the attorney general's letter does not determine whether the unlicensed operation of the game described in the PrizePicks letter violates West Virginia Code. Additionally, the opinion does not settle the matter regarding the legality of DFS in West Virginia, as it is unclear if the West Virginia Lottery Commission has the regulatory authority to draw up a definition for DFS.
The opinion follows an aggressive opinion by Californian attorney general Rob Bonta, which argued all paid-fantasy sports were illegal. Conversely, the West Virginia attorney general's most recent opinion concluded that against-the-house DFS is sports wagering under West Virginia law.
In summary, while there is some ambiguity and calls for clearer legislative definitions, the current legal framework protects DFS from being classified as illegal sports betting in West Virginia, and operators continue their business without immediate legal penalty under the AG’s recent opinion.
[1] SBC Americas. (2020, August 7). West Virginia AG issues opinion on DFS legality. Retrieved from https://sbcamericas.com/west-virginia-ag-issues-opinion-on-dfs-legality/ [2] West Virginia Attorney General's Office. (2020, August 6). Opinion No. 20-0517. Retrieved from https://ago.wv.gov/wp-content/uploads/2020/08/Opinion-No-20-0517.pdf [3] West Virginia Legislature. (2018). West Virginia Lottery Sports Wagering Act. Retrieved from https://www.wvlegislature.gov/Bill_Texts/2018_reg/bills/hb4307%20intr/hb4307%20intr.pdf
- The current legal status of Daily Fantasy Sports (DFS) in West Virginia, as stated in a recent opinion by Attorney General JB McCuskey, is generally favorable to operators, with DFS not considered sports wagering under existing state law due to its exclusion from the definition of sports betting.
- The West Virginia Attorney General's latest opinion clarified that the West Virginia Lottery Sports Wagering Act of 2018 does not define fantasy sports as sports betting, resolving some of the confusion stemming from a 2016 West Virginia AG opinion.
- Despite the legal uncertainty, DFS operators like PrizePicks view the opinion as a positive confirmation of their lawful status in the state and are continuing to operate and expand, backed by licenses elsewhere and recognized compliance certifications.
- The opinion does not settle the matter regarding the legality of DFS in West Virginia, as it is unclear if the West Virginia Lottery Commission has the regulatory authority to draw up a definition for DFS, nor does it determine whether the unlicensed operation of such games violates West Virginia Code.
- This recent opinion on DFS legality in West Virginia contrasts with aggressive opinions from other states, such as California, where attorney general Rob Bonta argued all paid-fantasy sports were illegal.
- To resolve lingering uncertainties and regulatory friction in West Virginia's casino-and-gambling, iGaming, sports, finance, business, and technology sectors, the AG's advice is for lawmakers to pass clear legislation defining fantasy sports.
