Arkansas becomes the 11th state to regulate daily fantasy sports with new legislation authorizing and taxing DFS signed by the governor this week.
This week Arkansas became the 11th state to legalize daily fantasy sports when Arkansas Governor Asa Hutchinson signed legislation. The bill based through the Senate by a 5:1 margin and unanimously thorough the House. Arkansas, which is home to 3 million residents, is the first state to regulate DFS during 2017.
The developments, while welcomed by Arkansas players, will not drastically affect Arkansas daily fantasy sports players. This is due to the fact that top DFS sites did not restrict play from the state.
What’s in the Arkansas Daily Fantasy Sports Legislation
Unlike bills passed in other states, the language of the legislation signed this week does not mandate any new consumer protection. However, because top daily fantasy sports sites are abiding by the laws in other states, all players will effectively benefactors of the consumer protections.
What the new law does is “authorize paid fantasy sports games” and brings tax revenue to the state. Daily fantasy sports operators would be taxed at a 8% rate on activity from Arkansas. The figure will be based on the game operator’s gross paid fantasy sports game revenues from the previous state fiscal year.
House Bill 2250 was the name of three-page bill.
Who Has Regulated DFS Thus Far
Arkansas joined 10 other states to regulate daily fantasy sports, joining Colorado, Indiana, Kansas, Maryland, Massachusetts, Mississippi, Missouri, Virginia and Tennessee. The games remain in somewhat of a grey area in most other states, while being illegal in a few others.
This year is expected to see additional states regulate DFS with new activity seen in states such as Maine and Texas.