Major DFS sites announced last week that they will no longer offer DFS to players in Ontario “due to a change in government regulations”. For obvious reasons, DFS players in Ontario are upset.
For those who are not familiar with DFS, Daily Fantasy Sports (DFS) is a form of online sports betting that allows participants to draft their fantasy teams for a specific day or week and compete against other players for cash prizes. It has gained immense popularity in recent years, particularly in North America, as it offers a unique and exciting way to engage with sports and potentially earn money from it.
DFS contests typically involve drafting a team of players within a given budget and earning points based on their performance in real-life games. The winner of the DFS contest is determined by the total number of points earned by their fantasy team. On DFS. You have a wide range of sports options, including football, basketball, baseball, hockey, golf, and soccer, and it continues to evolve and grow in popularity as more and more people get involved in the excitement of daily fantasy sports.
There have been some informative articles written on why sites are pulling out, such as THIS ONE by Greg Warren and THIS ONE by John Holden and I don’t want to repeat the content of that article.
Even though the announcement by major DFS sites took players by surprise, it’s been known for a long time that (i) the Alcohol and Gaming Commission of Ontario specifically included DFS as a product that it will be regulating; and (ii) peer-to-peer games will be ring fenced.
This is consistent with Criminal Code Requirements, but it still bad news for DFS, poker, betting exchange, and progressive jackpot aficionados.
Eventually there will be interprovincial agreements that allow shared liquidity between provinces. There may even be agreements between regulated jurisdictions outside of Canada. The provinces seem to get away with creatively interpreting certain gaming and betting sections of the Criminal Code. But we’re a long way from that happening.
A few poker sites have registered with the AGCO. We’ll see how big the ring-fenced tournaments get.
Grey Market DFS Operators Ready to Fill the DFS Void
What is most interesting to me is the interplay between the AGCO’s decision that they have the authority to regulate fantasy sports and the concept of fantasy sports as a “game of skill.”
All I’ve heard from fantasy sports operators over the past 10 years is about how DFS is a game of skill. Maybe it is! Some states have ruled that it is a game of skill, but they use different tests than we do up here.
If fantasy sports is truly a game of skill, the AGCO doesn’t have the authority to regulate it. It’s not a “game” or a “bet” as that term is used in the Criminal Code. So far, no one has stepped up to challenge this. I haven’t heard from the FSTA, and DK and FD would rather use their brand to provide sportsbook and casino services in Ontario and continue to offer DFS in other provinces. Just like in Ontario, they will keep playing the “game of skill” card until they are challenged on it.
In the meantime, look for unregistered operators to take advantage of the Ontario DFS vacuum. We will finally find out whether DFS is a “game of skill”.
The recent decision by major DFS sites to stop offering DFS to players located in Ontario due to government regulations has left many DFS enthusiasts in the province feeling disappointed and upset. While the announcement may have come as a surprise to some, it was known that DFS was included in the products that the Alcohol and Gaming Commission of Ontario would be regulating, along with the ring-fencing of peer-to-peer games. Although this decision is consistent with criminal code requirements, it is still unfortunate news for those who enjoy DFS, poker, betting exchanges, and progressive jackpot games. It remains to be seen how this decision will affect the future of DFS in Ontario and whether other provinces or countries will follow suit with similar regulatory measures.
