Colorado regulator to debate pick’em prohibition in DFS rule changes

Colorado could be set to become the next US state to outlaw so-called pick’em-style DFS contests as officials are set to debate broad sweeping changes to statewide DFS rules.

The rule changes were initially proposed by the Colorado Division of Gaming (CDG) during a workshop on September 1 but have since been revised to include changes.

The changes aim to define what is and what is not a fantasy contest in the Centennial State, with clear delineations including whether the contest has an entry fee, offers a prize, and is based on the statistical performance of multiple athletes.

Proposition-style fantasy contests must feature at least two different players or teams, with the outcome based on the accumulated points from all athletes or teams selected.

In addition, fantasy contests can be of any duration but must specify a beginning and an end, while free-to-play fantasy contests are not deemed to be regulated by the CDG.

However, the CDG does specify that so-called pick’em games will be prohibited under the rule changes.

“Fantasy contests shall include contests where patrons compete against other patrons. Contests that include parlay-style wagers that are stacked wagers on single athletes against fantasy contest providers shall be prohibited,” the specific proposal states.

The proposals, if approved by the state, would add Colorado to a growing list of jurisdictions in which pick’em-style contests are prohibited. Other states where such contests are banned include Michigan and New York, while North Carolina, like Colorado, is currently considering prohibiting the vertical.

“The Division is proposing extensive changes to the Fantasy Contest Operator Rules,” The CDG said in a press release confirming the meeting.

“These changes will bring the Fantasy Contest Operator Rules into better alignment with Gaming and Sports Betting Rules and will clarify the rights and responsibilities of fantasy contest operators and patrons,” it added.

Other prominent changes to the rules include a separation of fantasy contest operators into two different types based on the number of “active patron accounts” operated over the last 12 months.

So-called ‘small’ fantasy contest operators are categorised as having fewer than 7,500 accounts.

Smaller operators will be required to register with the CDG, paying an initial application fee of $350 and a registration renewal fee of $350, while their larger counterparts will be required to apply for licenses with application and renewal fees amounting to $15,000 each.

In both cases, licenses and registrations will run for a two-year period.

The CDG has also introduced several responsibilities to fantasy operator contest standards including record keeping and the reporting of violations of Colorado gaming laws when instances are discovered.

In addition, the standards include changes to advertising rules and a prohibition on the usage of risk-free terminology when referring to contest prizes, as well as codified rules concerning contest closure, user accounts, and internal controls in operation by licensed/registered operators.

A rulemaking meeting is scheduled to take place on October 30, where stakeholders will be invited to voice their opinions on the changes.