The DraftKings and FanDuel platforms could go offline in Connecticut on Thursday, barring a last-minute deal between the companies and one of the state’s existing game operators.
The new state bill that legalizes sports betting and online gaming, expected to go into effect July 1, requires online fantasy sports platforms to apply for licenses through the state’s Department of Consumer Protection and forbids them to operate in the interim.
That could force the two companies to temporarily shut down as they proceed with the licensing process, which could take months, says Hartford Courant.
In the face of protests from the fantasy sports industry, lawmakers added a provision to the budget implementer’s bill, creating a process through which fantasy operators can receive provisional licenses, provided they contract with either of the two recognized tribal nations. federally in Connecticut – Mohegans and Mashantucket Pequots – or with the CT Lottery.
Provisional licenses are essential to the licensing process
Under the Implementer’s Bill, provisional licenses for fantasy sports companies will last until September 30 or until all final licenses have been issued, whichever comes first.
DraftKings and FanDuel had not announced any deals as of late Tuesday, but government spokesman Max Reiss said he hoped they would reach an agreement soon, allowing them to continue operations without interruption. “We have every expectation that these [provisional licenses] will be issued by then,” Reiss said on Tuesday.
In addition, Reiss said fantasy sports companies have agreed to pay a total of $1.1 million in recurring fees for operating in Connecticut without a license in recent years.
The bill passed by the legislature this year allows tribal nations and the Connecticut Lottery to operate online and sports betting. In states that have legalized sports betting, FanDuel and DraftKings also accept betting on games, and they can also do so in Connecticut, in partnership with other operators.
All changes to the Connecticut pacts, including the new gaming law, must be approved by the Federal Bureau of Indian Affairs.
CT Lottery said it “doesn’t expect to announce a partner in the next few days.”
A spokesman for the Fantasy Sports & Gaming Association said the trade association was not aware of the negotiations, but “it would be a positive development for fantasy sports players in Connecticut if a solution could be found to keep them.” living’ with temporary licenses”.
The state’s new licensing process is required for any fantasy sports platform through which fans pay entry fees and win prizes.
Traditional fantasy sports leagues that do not require entry fees, such as those operated through ESPN and CBS, will not be affected.
About DraftKings
DraftKings Inc. is a digital sports entertainment and games company created to fuel the competitive spirit of sports fans with products spanning fantasy sports, regulated games and digital media.
Based in Boston, the company was launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman. The group currently provides gaming and sports entertainment to more than 50 operators in more than 15 regulated markets in the US and around the world.
About FanDuel
FanDuel is an innovative sports technology entertainment company that is changing the way consumers engage with their favorite sports, teams and tournaments.
The main gaming destination in the US, the group consists of a portfolio of leading gaming, sports betting, fantasy sports, early deposit betting and media brands.
The company is headquartered in New York, United States. In addition, it is a subsidiary of Flutter Entertainment plc, one of the world’s largest gaming and sportsbook operators.