Delaware declares DFS illegal
 State Department of Justice labels daily fantasy a game of chance rather than skill
The Delaware Department of Justice has ruled daily fantasy sports is illegal under Delaware law and requested operators to stop offering their services in the state.
FanDuel, DraftKings and Yahoo all received cease and desist letters late last week after the DOJ concluded DFS was a game of chance rather than skill and therefore illegal in the state.
A DOJ statement made clear all DFS products were prohibited, not just those operated by firms that received a letter.
The âgame of chanceâ opinion was first issued back in March, but the DOJ refrained from taking formal action against DFS companies since a bill to tax and regulate DFS was making its way through the state assembly.
However, the legislative session expired at the end of June without House Bill 444 passing, prompting the DOJâs letter to the firms.
The DOJ statement did contain some reasons for optimism, as it suggested the department would have no issues with the industry should it be regulated and brought under the control of the state, like the lottery business.
 âWe are certain that many Delaware residents and visitors would enjoy participating in the full array of fantasy sports contests, including those that require payment for participation and have cash awards,â said the DOJ. âBut until such contests can be offered legally, the Department of Justice must enforce the law.â
It is not yet unknown how the companies will react, although it is likely they will simply withdraw from Delaware given the size of the state and their history of compliance with similar rulings form states like Idaho.
FanDuel and DraftKings offered no comment to EGR NA.
The decision makes Delaware the 12th state where the Attorney General or DOJ has declared DFS to be gambling under state law. DFS is also considered illegal in five other states â Arizona, Montana, Washington, Iowa and Louisiana.