Underdog Fantasy is facing a nearly $400,000 fine from the Maine Gambling Control Unit for offering illegal fantasy games, which has led the daily fantasy sports operator to cease its Pick ‘Em offerings in the Pine Tree State.

The Maine Gambling Control Unit issued a $391,850 fine to Underdog Fantasy for allegedly offering illegal fantasy games in the state. Maine gambling regulators took aim at Underdog Fantasy’s Pick ‘Em games this past May, sending the operator a cease-and-desist letter.

Underdog Fantasy will have 30 days to appeal the decision. It has already ceased its Pick ‘Em offerings in the state, but will continue to offer its other DFS games.

Just Beginning of Maine Process

An Underdog Fantasy spokesperson noted that this is just the initial starting point of the administrative process in Maine. The operator will have an opportunity to be heard by the Maine Gambling Control Unit before the fine becomes final.

“This is just an initial step in the administrative process, and we now have the opportunity to be heard by the state in the coming weeks and look forward to receiving a final decision that ultimately agrees with our interpretation of Maine law,” an Underdog Fantasy spokesperson told Saturday Down South.

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 initial complaint to Underdog Fantasy over the summer noted that the Pick ‘Em style games did not meet the Maine definition of a fantasy contest, which is a simulated game or contest where fantasy contestants compete against each other by using their knowledge and skill to select and manage a team roster.

States Taking Aim at Pick ‘Em

Maine is just the latest state to take aim at Pick ‘Em offerings, as regulators are starting to take action to force fantasy operators to alter their games.

Earlier this month, Michigan regulators approved new DFS rules to ban Pick ‘Em in the state. The state approved them and will likely enforce the ban on Pick ‘Em DFS.

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

New York also approved new rules in October to ban DFS as well. The New York State Gaming Commission unanimously finalized DFS rules that likely include a ban on Pick Em’ style games. The new DFS rules declare that “contests shall not be based on proposition betting and shall not have the effect of mimicking proposition betting.”

Even with the newly approved rules, an Underdog Fantasy spokesperson told Saturday Down South that it has not received any order to shut its Pick ‘Em games down and will continue to offer them in New York.

As of Monday, Oct. 23, PrizePicks is also still offering Pick ‘Em games in the state.

Additionally, last week North Carolina regulators approved initial rules for sports betting in the state, which may include a prohibition on Pick ‘Em games as well.

According to the recently introduced rules, fantasy contests in North Carolina will be defined as follows:

“Fantasy or simulated games or contests in which one or more fantasy contest players compete and winning outcomes reflect the relative knowledge and skill of the fantasy contest players and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events.”

Included in the rules is a number of prohibitions on fantasy sports contests, including one that specifically bans contests “based on proposition wagering or contests that involve, result in, or have the effect of mimicking proposition wagering or other forms of sports wagering.”

The Coalition for Fantasy Sports, which represents PrizePicks, Underdog Fantasy, and Sleeper, released a statement regarding the new rules. A spokesperson for the group said the North Carolina legislature “ensured” the coalition that the sports betting bill would allow all fantasy contests to continue in the state.

“The legislature ensured that our contests would continue to be offered as fantasy sports when it passed its sports wagering bill just a few months ago. We are confident that the Lottery Commission will reach common sense rules that reflect the letter and spirit of that bill. We look forward to participating as stakeholders in the rulemaking process, just as we worked alongside with legislators this past session to protect the fantasy sports that North Carolinians have played for years,” a spokesperson said.

Robert Linnehan

Robert is an expert on sports betting in the United States, specifically the legalization process and regulation surrounding the industry.