Rhode Island AG says DFS is legal; FCC not deluged by DFS TV ad complaints

Daily fantasy sports operators have caught a break as Rhode Island’s attorney general declared the activity to be legal under state law.

On Thursday, Rhode Island AG Peter Kilmartin (pictured) sent a letter to Gov. Gina Raimondo and the heads of the state’s two legislative chambers informing them that a review had concluded that DFS “may currently operate legally in the state of Rhode Island.”

Kilmartin cautioned that DFS “does implicate certain provisions of existing civil and criminal statutes” as Rhode Island prohibits “games of chance” and lotteries not operated by the state. But Kilmartin believes DFS doesn’t meet the state’s definition of a lottery based on his belief that the element of chance is not the “dominant factor” in determining the success of a DFS lineup.

Nonetheless, Kilmartin gave a “very strong suggestion” to state legislators to enact a DFS-specific statute that will establish a “high level of regulation.” Kilmartin believes such measures would ensure “criminal elements do not infiltrate the game,” while also protecting minors and problem gamblers. Kilmartin even suggested that a regulated DFS sector could “potentially generate revenue” for the state.