Maine Daily Fantasy Sports (DFS) operators face new potential legislation that would ban proposition betting in fantasy contests.
Senate Bill 33, sponsored by Senator Craig Hickman, aims to ban prop-style offerings from DFS operators and has been referred to the Committee on Veterans and Legal Affairs.
What is a proposition bet?
The bill defines what would be outlawed should it be passed. Under Sec. 2. 8 MRSA §1101, sub-§9-A, a proposition bet is defined as “a wager made regarding the occurrence or nonoccurrence of an event or circumstance during a sports event that is not dependent on the final outcome of the sports event, including a contest in which a contestant must choose, directly or indirectly, whether an individual athlete or a single team will surpass an identified statistical achievement, such as points scored.”
Sec. 7. 8 MRSA §1104, sub-§2-A is enacted to read: “2-A. Proposition bets prohibited. A fantasy contest may not be based on a proposition bet or a contest that has the effect of mimicking a proposition bet.”
SB33 also seeks to make other adjustments to existing legislation governing DFS. The changes are as follows:
- The definition of a fantasy contest is updated to mean a contest in which six or more contestants pay an entry fee to participate;
- Amends the licensing fee for a fantasy contest operator to $5,000 – up from $2,500 prior, to better reflect other states’ licensing fees;
- Existing legislation allows a DFS operator to operate fantasy contests while an initial license, renewal, or transfer is pending. SB33 seeks to eliminate the ability to do so before.
The Maine Gambling Control Unit has form
Maine’s most notable enforcement of previous rules saw a hefty $391,850 fine placed on DFS company Underdog: $50 per unique customer serviced by Underdog’s pick’em contests from January 2021 to October 2023.
The fine was also levied with a cease and desist (specifically for the pick’em contests). In April 2024, the regulator announced on X that five DFS operators no longer hold a license in the state. These were:
- Bidventures
- Boom Shakalaka
- Data Force
- Sportshub
- Underdog
The Pine Tree State is not the only state to contemplate or take action against pick’em contests, with at least nine other states also considering (or making) regulatory alterations. These are:
- Arizona
- California
- Florida
- Mississippi
- Michigan
- New York
- North Carolina
- Virginia
- Wyoming
It is no coincidence that the move to curb DFS operators’ offerings comes as Maine completes its first full year of legalized sports betting. Director of Maine’s Gambling Control Unit, Milton Champion, told local press in December: “I think it was a smooth opening. We haven’t had a lot of complaints.”
He added that the $6 million in state revenue since November 2023 is what the regulator had expected and that he thinks the revenue will remain steady. He said, “I don’t see it having any real significant increase,” citing the state’s small population (1.3 million) and people’s habitual behavior.
SB33 will now be considered at the committee level before being considered for legislative approval and potentially passed into law later this year.