Michigan Will Likely Ban DFS Pick 'Em Games
Michigan is the most recent state to take aim at player prop over/under style daily fantasy sports games.
According to the Coalition for Fantasy Sports, a group representing PrizePicks, Underdog Fantasy, and Sleeper, Michigan DFS rules that ban the popular Pick ‘Em style games will likely soon go into effect.
The Coalition for Fantasy Sports today reported that the state Joint Committee on Administrative Rules (JCAR) took no action on proposed Michigan Gaming Control Board DFS rules during its 15-day consideration period. The inaction by the JCAR will automatically file the DFS rules with the Michigan Secretary of State where they will most likely become law.
Rules Proposed Last August
The Michigan Gaming Control Board proposed the DFS rules back in August. The rules prohibit the following regarding Pick ‘Em style games:
- “Proposition selection” means a fantasy contest player choosing whether an identified instance or statistical achievement will occur, will be achieved, or will be surpassed
- Proposition selection or fantasy contests that have the effect of mimicking proposition selection
- Any fantasy contests that involve, result in, or have the effect of mimicking betting on sports
Pick ‘Em style DFS games involve customers playing against the house and making over-under type selections on a combination of statistical outcomes for athletes.
The Coalition for Fantasy Sports decried the new rules and JCAR’s inaction to amend the rules. The coalition reported more than 2,600 emails were submitted protesting the new DFS rules by Michigan DFS customers and over 700 phone calls were placed to the committee.
“We will continue to work with regulators and policymakers to provide the innovative fantasy sports products customers want and love,” the coalition wrote in a prepared statement.
State Sen. Jim Runestad (R-23), a proponent of DFS in the state and a member of the JCAR, criticized the decision to move the rules forward.
“For weeks we’ve heard from citizens in our home districts and across the state, demanding that we lead on this issue. Instead, Chairman Haadsma and his fellow JCAR Democrats chose to do nothing. 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. 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,” he said in a prepared statement.
According to Lisa Keith, communications specialist and public information officer for the Michigan Gaming Control Board, the rules will go into effect his month.
“The MGCB’s proposed Administrative Rules for fantasy contests, which are required under the Fantasy Contests Consumer Protection Act and were submitted to the Michigan Legislature’s Joint Committee on Administrative Rules, will take effect this month. Rules take effect once they are filed with the Michigan Secretary of State,” she said.
Michigan Second State This Week to Take Action
It was the second state in two days to rule against Pick ‘Em games. The New York State Gaming Commission yesterday approved its daily fantasy sports (DFS) rules and regulations. which placed a prohibition on DFS offerings that mimic proposition bets.
The Commission opened comments on the proposed rules this summer and closed the comment period in late September. The commission received several comments in favor of Pick ‘Em games, but did not amend the DFS rules.
The finalized rules do not include Pick ‘Em style DFS games, despite protests from PrizePicks, UnderDog Fantasy, and the Coalition for Fantasy Sports (CFS).
The rules will have to be published in the state register by Oct. 18.