Minnesota rep wants a law to regulate DraftKings, FanDuel

INVER GROVE HEIGHTS, Minn. (KMSP) - A Minnesota state representative plans to introduce legislation that defines daily fantasy sports as a legal activity, but would require companies like DraftKings and FanDuel to get licensed by the Department of Public Safety. The main purpose of the legislation would be to create consumer protections for daily fantasy players.

“This legislation has become necessary due to the sketchy rules, uncertain legality, and alleged scandals surrounding fantasy betting sites like FanDuel and DraftKings,” Rep. Joe Atkins (DFL-Inver Grove Heights) said in a statement. “My goal is to make sure fantasy sports betting is conducted fairly and legally. Minnesotans should know they’re not going to be ripped off when they engage in fantasy sports betting.”

Atkins said Minnesotans rank No. 4 in the country in participating in sports fantasy betting, despite zero consumer protections. He highlighted the $1 million victory of a Minnesotan last week on FanDuel as an example of the large sums of money at stake in fantasy sports.

Fantasy sports legislation

LEGALITY – “The legislation recognizes daily sports fantasy betting as a lawful activity in Minnesota.”

LICENSING, SECURITY, AND PROTECTION OF PARTICIPANT FUNDS – “Entities engaged in daily sports fantasy betting with more than $50,000 wagered per year by its participants shall be required to be licensed by the Minnesota Department of Public Safety. To be licensed, the entity is subject to background checks, review of practices, and audits as established and carried out by the department.”

Department of Public Safety statement

"Alcohol and Gambling Enforcement agents enforce current Minnesota law; it would be premature to speculate on legislation that has not been introduced or discussed by the legislature. Minnesota currently follows federal law which permits fantasy sports, including online activities."