West Virginia Attorney General issues unclear stance on controversial Daily Fantasy Sports legislation
West Virginia's Ambiguous Stance on Daily Fantasy Sports (DFS) Remains Unresolved
The legal status of Daily Fantasy Sports (DFS) in West Virginia remains uncertain, as a recent opinion issued by the state's Attorney General, JB McCuskey, has highlighted conflicting aspects of the law.
In the opinion, McCuskey acknowledged that DFS contests could technically qualify as sports wagering under West Virginia law. However, he also pointed out a key legal contradiction because DFS is explicitly excluded from the definition of sports wagering by West Virginia legislation [1][4].
The issue came to a head in 2022 when the West Virginia Lottery Commission issued a cease-and-desist order against PrizePicks, claiming its "against-the-house" DFS contests violated sports wagering laws. PrizePicks contested the order, arguing that DFS is explicitly exempt from those laws under current statutes.
McCuskey's opinion affirmed that against-the-house DFS could be seen as sports betting in theory, yet also acknowledged that the legislature excluded DFS from that category, making enforcement difficult without clearer statutory language [1][2][4].
The attorney general concluded that the enforcement lacks a strong legal basis because the Lottery Commission relied on a proposed but never enacted bill as legal grounds for its action. He recommended that the West Virginia legislature clearly define DFS and its regulatory status to resolve the ongoing legal uncertainty [1].
Operators like PrizePicks continue to offer their products in West Virginia despite regulatory scrutiny and ambiguity, pursuing expansions elsewhere while emphasizing compliance and responsible gambling measures [1][2].
It is unclear if the West Virginia Lottery Commission has the regulatory authority to draw up a definition for DFS. The 2016 opinion drafted by the West Virginia attorney general dwelled on a defunct piece of legislation, adding to the confusion [3].
The situation hinges on awaiting legislative clarification to resolve this legal gray area [1][4][5]. The opinion does not provide a definitive answer on whether the Commission can regulate DFS, as stated earlier. The recent opinion does not settle the matter regarding the legality of DFS in West Virginia [2].
This news article reports a second opinion on DFS by the West Virginia attorney general, JB McCuskey. However, the attorney general also highlighted that DFS is explicitly excluded from the state's sports wagering definition, adding to the ongoing legal uncertainty surrounding the industry in West Virginia.
[1] SBC Americas. (2023, March 14). West Virginia AG issues second opinion on the legality of DFS. Retrieved from https://sbcamericas.com/west-virginia-ag-issues-second-opinion-on-the-legality-of-dfs/
[2] Legal Sports Report. (2023, March 14). West Virginia AG issues opinion on DFS, but uncertainty remains. Retrieved from https://legalsportsreport.com/2023/03/14/west-virginia-ag-issues-opinion-on-dfs-but-uncertainty-remains/
[3] West Virginia Legislature. (n.d.). Sports wagering. Retrieved from https://www.wvlegislature.gov/WVCODE/Code/Chapter/30/29B/2/
[4] West Virginia Lottery. (n.d.). Sports wagering. Retrieved from https://www.wvlottery.com/sports-wagering/
[5] McCuskey, J. B. (2023, March 10). Opinion to Speaker of the House of Delegates Roger Hanshaw re: Daily Fantasy Sports. Retrieved from https://www.wvago.gov/wp-content/uploads/2023/03/Opinion-to-Speaker-of-the-House-of-Delegates-Roger-Hanshaw-re-Daily-Fantasy-Sports.pdf
- The ongoing legal uncertainty in West Virginia over Daily Fantasy Sports (DFS) is due to the ambiguous stance, as the industry is explicitly excluded from the state's sports wagering definition according to the latest attorney general's opinion.
- Despite regulatory scrutiny, DFS operators like PrizePicks continue to expand their business in West Virginia, emphasizing compliance and responsible gambling measures, awaiting legislative clarification on the regulatory status of DFS.
- The attorney general's opinion suggests that the West Virginia Lottery Commission may lack the regulatory authority to draw up a definition for DFS without clearer statutory language elaborating on its regulatory status.
- In West Virginia's gaming industry, the future regulation of Daily Fantasy Sports is uncertain, as the ongoing debate hinges on the West Virginia legislature clearly defining DFS and its regulatory status to resolve the gray area.
