The daily fantasy sports industry erupted with such speed that government was quickly behind the curve, but Massachusetts Attorney General Maura Healey has effectively played catch-up ball.
Ms. Healey last week issued regulations on the industry, whose main players, DraftKings and FanDuel, are based in Boston and New York City respectively. The companies' relentless TV ads proclaim the money to won, but the vast majority of winnings go to a small percentage of experts employing complex algorithms. "These are games that you carry around with you in your pocket and lose money at the touch of a button," said the attorney general in reference to games that can be played on a mobile device.
Among the rules are a ban on companies issuing credit, a requirement that ads disclose average net winnings, the establishment of "beginner-only" contests separate from the high rollers, a prohibition on using computer programs to automate contest entries, and a limit on players to age 21 and older. The attorney general will hold public hearings on her regulations, which do not require legislative action.
New York Attorney General Eric Schneider has attempted to ban daily fantasy sports entirely, an effort that appears to be politically motivated and may not hold up in court. Ms. Healey's approach is more reasonable and likely to succeed.