Lawmakers in Illinois and Maryland have introduced legislation to expand the legal scope of daily fantasy sports (DFS), allowing players to compete against the house rather than solely against other participants. The proposed bills would establish regulatory frameworks, tax structures, and consumer protections for this growing segment of the gaming industry.
In Illinois, State Sen. Lakesia Collins introduced Senate Bill 1224, also known as the Fantasy Sports Consumer Protection Act. The bill seeks to fully legalize DFS contests, including both traditional peer-to-peer competitions and against-the-house formats. If enacted, the Illinois Gaming Board would oversee DFS operators, ensuring compliance with state regulations while allowing companies the freedom to manage their own digital platforms and contest structures.
The bill also proposes an amendment to the Sports Wagering Act, explicitly distinguishing DFS from sports betting. This clarification aims to prevent regulatory overlap and maintain DFS as a separate industry. The proposed tax rate for DFS operators would range from 10% to 15% of adjusted gross fantasy contest receipts, with the final rate set by the gaming board.
Licensing fees for DFS operators would follow a structured model. To obtain an initial four-year license, companies would be required to pay 8% of their adjusted receipts from the previous year or $1 million, whichever is lower. Renewal fees would be 1% of adjusted gross receipts over the prior four years.
The revenue generated from licensing would be allocated with 85% directed to the State Gaming Fund and 15% dedicated to problem gambling treatment programs. Meanwhile, DFS tax revenue would support the Common School Fund. The bill has been referred to the Senate Assignments Committee and would take effect immediately upon passage.
In Maryland, Sen. Jim Rosapepe and Sen. Paul D. Corderman have introduced Senate Bill 470, along with its House counterpart, House Bill 484. The legislation aims to broaden the definition of fantasy sports competitions to include contests where “a single participant competes against a statistical measurement established by the fantasy competition operator.” This change would legalize against-the-house DFS betting, expanding the available options for players in Maryland.
Similar to Illinois’ proposal, the Maryland bill explicitly states that DFS contests would not be classified as sports wagering, ensuring that DFS remains under a separate regulatory framework. Additionally, the legislation mandates the State Lottery and Gaming Control Commission to create a statewide voluntary exclusion program, providing consumer protections for individuals struggling with gambling-related issues.
Both bills are scheduled for committee hearings in early February, with Maryland’s legislation set to take effect on October 1, 2025, if passed. The push to expand DFS regulations is not limited to Illinois and Maryland. Other states, including Hawaii and Kentucky, are also considering similar measures in 2025.
Original article: https://www.yogonet.com/international/news/2025/01/31/93634-illinois-and-maryland-lawmakers-push-to-expand-daily-fantasy-sports-regulations
