Fantasy sports license changes in Michigan see Underdog Fantasy leave the state
New legislation and requirements for fantasy sports went into effect on Friday, July 1.
New requirements in Michigan have seen various fantasy sports operators leave the state, one of which was Underdog Fantasy. According to the Michigan Gaming Control Board, these operators were required to apply for licensing by July 1.
The Executive Director of the Michigan Gaming Control Board (MGCB), Henry Williams said: “Licensing is a key step in fulfilling the requirements established by Michigan’s Fantasy Contests Consumer Protection Act. I urge operators to file soon for licensing so current operators can continue to participate and new ones can join them once rules have been approved by the Michigan Legislature.”
The MGCB’s proposed fantasy contest draft rules were submitted to the Michigan Legislature on April 27 for review. Other fantasy sports operators have either pulled out of the state or tailored the offerings.
Peter Schoenke, a board member of the Fantasy Sports & Gaming Association told LegalSportsReport.com: “Companies that were not operating in the state before the law was passed need to exit and re-apply.
“Michigan is a state with a good regulatory environment that allows for operators of all sizes to enter. It doesn’t have any major issues as far as the FSGA is concerned.”
As we mentioned, Underdog Fantasy is one of the DFS operators that have pulled out of the state, citing regulatory requirements being the reason.
The company issued a statement saying: “Unfortunately because of some regulation changes we have had to stop operating in Michigan at the moment. We are exploring our options to be able to operate there again but there is no timeline for that just yet.”
Yahoo! sent an email to its users stating that the site would no longer offer paid fantasy contests to Michigan players. This means that Daily Fantasy, Best Ball, Matchup Challenges and Prize Leagues are unavailable in the state.
There are two licenses that the MGCB can issue regarding daily fantasy sports, one is an operator license and the other is a management company license.
Michigan requires the submission of commercially reasonable procedures and internal controls protecting the public and ensuring the integrity of the contests. Key personnel must also be qualified by the MGCB.
The Fantasy Contest Consumer Protection Act took effect in the state at the end of 2019.
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