Colorado Authority Appears Ready to Prohibit All Fantasy Pick'Em Games
In the ongoing struggle for freedom in the fantasy sports universe, Colorado's Division of Gaming has taken a hard turn towards the restrictive side, leaving operators like PrizePicks and Underdog in a pickle. Over the past year, Colorado has shifted from a progressive regulatory stance to an incredibly strict one, making it one of the most restrictive regimes in the country.
Josh Kirschner, speaking on behalf of PrizePicks, voiced this concern during a Division of Gaming rulemaking hearing earlier this week. Since Colorado's legal sports betting market got its groove on, it's joined the list of states where fantasy sports operators are lobbying for rule changes for pick'em contests.
In the last month, regulators in both Michigan and New York have banned some pick'em contests, arguing they're too close to sports betting. But it looks like Colorado is taking things a step further by potentially banning all pick'em contests, including single- and multi-player games often offered by Dabble Fantasy.
The perceived problem is customers playing against the house rather than other players. This leaves major sports betting operators like DraftKings and FanDuel, which started as daily fantasy companies, in a better position. However, for companies like PrizePicks and Underdog, the changes could slice into their growing fantasy sports sector.
Kirschner pointed to other issues as well. He noted that the regulator seems to be moving in a direction that contradicts the current law, which requires the state to develop specific rules around fantasy sports. He suggested that the regulator is attempting to apply what's legal for sports betting to fantasy instead.
Another issue lies in the definition of fantasy contests in the proposed rules. In Colorado, fantasy contests are defined as those that require "adding together the fantasy points from two or more players or positions," which differs from the standard definition, which says such contests are based on an "accumulation" of points.
The public comment period on the proposed rules is open until 5 p.m. Friday. After that, the Division of Gaming will likely consider and potentially incorporate additional changes before the rules are voted on at a future Limited Gaming Commission meeting.
In the meantime, keep those fingers crossed for your favorite pick'em platforms because it's looking grim in Colorado right now. The future of fantasy sports is uncertain, but one thing's for sure: the regulation drama isn’t over yet.
Enrichment Data:
- Colorado's proposed regulations on fantasy sports are heavily restricting Pick 'Em or "parlay-style" fantasy sports contests, impacting operators like PrizePicks and Underdog differently than traditional daily fantasy sports (DFS).
- Daily Fantasy Sports (DFS) remain legal in Colorado without major restrictions, allowing traditional fantasy contests to operate normally.
- Pick 'Em contests face significant limitations:
- Underdog Fantasy can offer paid contests, but only if participants select at least four players within the same contest.
- PrizePicks' contests are limited to free-to-play formats, reducing direct profit opportunities for players.
This regulatory approach creates a challenging environment for Pick 'Em-style operators compared to the freer DFS market, making it harder for players to engage in or profit from these contests in Colorado. It seems that the intention is to limit gambling-like wagering formats while preserving the legality of traditional fantasy sports. There is no indication from the search results that Colorado is planning a full ban on fantasy sports. Instead, the approach is nuanced, distinguishing between traditional DFS and parlay-like Pick 'Em contests.
The proposed regulations in Colorado are making it difficult for operators like PrizePicks and Underdog, as they restrict Pick 'Em or parlay-style fantasy sports contests. While Daily Fantasy Sports (DFS) remain legal in Colorado, operators offering Pick 'Em contests face significant limitations. For instance, Underdog Fantasy can only offer paid contests if participants select at least four players within the same contest, and PrizePicks' contests are limited to free-to-play formats. This regulatory approach creates a challenging environment for Pick 'Em-style operators, making it harder for players to engage in or profit from these contests in Colorado.
