The Massachusetts Attorney General is reviewing the legality of DraftKings, a fantasy sports website based in Boston.
"The point is this: This is a new industry. It's something that we're reviewing, and we'll learn more about it," Attorney General Maura Healey told State House News Service when asked about the legality of the business on Wednesday.
DraftKings is a website where participants can bet money on their fantasy sports teams. The website has said that it is a game of skill and is legal under U.S. and Canadian law, but it bars residents of Arizona, Iowa, Louisiana, Montana, and Washington due to local laws.
"We take the legal status of our contests very seriously," the site says in an FAQ on its website. Attempts by State House News Service to reach someone at the company were not successful.
Peter Schoenke, chairman of the Fantasy Sports Trade Association, defended DraftKings in a statement sent to the Boston Globe.
"These are skill-based games that match sports fans against each other in a contest of sports knowledge and strategy that is fundamentally different from wagering on the performance of an individual player or the outcome of a particular game," he said.
U.S. Rep. Frank Pallone Jr. on Monday asked the House Energy and Commerce Committee to hold a hearing on the legality of fantasy sports.
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"Fans are currently allowed to risk money on the performance of an individual player. How is that different than wagering money on the outcome of a game?" Pallone said.
Advertisements for DraftKings have been all over radio and television of late due to the start of the NFL season.
