Yet another state condemned daily fantasy sports as Hawaii became the latest in an ever-growing line of states to declare DFS illegal gambling. Hawaii isn’t as big as New York, Texas, or Illinois, the previous states to make that declaration, but it is yet another sign of the troubles besieging DraftKings (which has already ceased operating in the state) and Fan Duel.
Though this will likely go to court, just as it has in the other three states, and will likely be prolonged as long as possible, just as it has in the other three states, it doesn’t look good. Remember, DFS is already illegal in Arizona, Iowa, Louisiana, Montana, Nevada, and Washington so taking away business in even more states, especially states as big as New York, Texas, and Illinois, would be huge blows for the sites.
In order to stop their downhill spiral, DraftKings and Fan Duel need to work with lawmakers to find a solution. Though DFS may not be considered gambling under the Unlawful Internet Gambling Enforcement Act of 2006, many are beginning to see it as absurdity that the law does not include DFS websites.
All parties seem to agree that Daily Fantasy sites must be regulated. DraftKings and Fan Duel need to work with lawmakers to implement regulation that makes it impossible for professionals to enter contests hundreds of times, using computer programs to do so, and taking advantage of inexperienced players in the process (DraftKings has already taken steps to do this).
The biggest problem with DFS at the moment is the lack of governmental regulation. Online poker was sunk because of the same reason (along with payment processor problems that are hurting DFS right now) and it’s up to the companies to work with lawmakers to produce legislation that benefits everyone.