Authority and public resources
Jurisdiction: United States, federal
Daily fantasy sports contests have no single federal regulator and operators have no federal license. Deceptive advertising and promotions nationwide are governed by the U.S. Federal Trade Commission. Each state sets its own rules and decides whether DFS is legal there. Looking for something else from the agency, such as a refund, identity theft or the Do Not Call list? Go to ftc.gov.
This pattern was established in 2015. It started when New York’s Attorney General ordered two of the largest DFS operators, DraftKings and FanDuel, to stop accepting wagers in the state. The legal policies on daily fantasy sports on the US market are outlined below.
What the FTC Does for DFS
Consumer Protection, Not Licensing
Users wondering what the Federal Trade Commission does have a clear answer. The FTC is an independent federal agency with no parent department, which was established in 1914. The Federal Trade Commission’s purpose is to protect consumers from unfair and deceptive business practices. Its second goal is to protect competition and ensure fair markets.
While it polices deceptive DFS advertising and misleading promotions, the FTC doesn’t license DFS operators. It also doesn’t decide on local laws, so every state can decide whether DFS is legal there.
FTC’s headquarters are in Washington DC, at 600 Pennsylvania Avenue NW. Its official phone number is 202-326-2222. It’s one of the several regulators on our regulators hub.
Additionally, our DFS hub covers the product. New participants can check out our guide to what DFS is as the starting point.
Section 5 in Plain Terms
The FTC operates under the Federal Trade Commission Act of 1914, 15 U.S.C. section 41 et seq. All deceptive acts and unfair practices are outlined in Section 5.
For daily fantasy sports, that covers advertising and promotions, including misleading offers. The Section doesn’t cover scoring, payouts, or game integrity. Another Act, the Clayton Act, provides the FTC merger review.
The 2017 Merger Case
There was a proposed merger between DraftKings and FanDuel in 2017. The FTC and the California and District of Columbia Attorney Generals sued to block it. They said that the combined company would control more than 90% of the market for paid DFS contests.
The deal wasn’t blocked by courts, and DraftKings and FanDuel abandoned the proposed merger in July 2017. After they did, the FTC dismissed the complaint. The full record is recorded in the FTC’s case file.
Who Decides If DFS Is Legal
No Federal DFS License
No federal license exists for DFS operators, and there’s no federal register to check. Legality is set by each state. Our DFS legal states page shows the current situation for each state.
State Regulator or Attorney General
U.S. states take one of two routes when it comes to daily fantasy sports contests. Wherever a state regulates DFS directly, it’s governed by the respective regulatory body, such as the Michigan Gaming Control Board, or the Pennsylvania Gaming Control Board. In all other states, the DFS position is set by the Attorney General.
New York stands as the reference case. Its Attorney General sent cease-and-desist letters to DraftKings and FanDuel in 2015 saying that their contests were illegal gambling under state law. This caused a lot of commotion and changed the industry’s legal framework on the matter.
The FTC’s cases and proceedings library is the record of its cases. It isn’t a list of licensed operators.
Minimum Age by State
The minimum age for paid daily fantasy sports contests starts at 18. Some states set it at 19, while a few set the minimum age limit at 21.
Check the legal age requirements for the state you’re playing from. Also, check your local laws carefully before participating in these contests.
FTC Complaints and State Attorneys General
Complain to the Operator First
In case of a complaint, users should start with the DFS operator. Contact the customer support team, and take screenshots and records of what you sent and the response. Our complaints guide covers the general steps.
Reporting to the FTC
In cases of misleading promotions and terms or deceptive advertising, DFS participants can report it to reportfraud.ftc.gov. Federal Trade Commission complaints aren’t the same as a refund request.
The FTC acts on deceptive conduct patterns, and the goal isn’t to recover a player’s balance. There’s no fixed filing window. Escalate the situation as soon as you’ve exhausted the process on the operator’s side.
Your State Attorney General
Reporting a complaint with your Attorney General is encouraged. In many cases, it’s the more useful route for individual complaints.
Attorneys generals enforce consumer protection law for the state, not for individual players. They aren’t your lawyer and can’t provide legal advice. Many accept complaints and forward them to the operators. Some offer voluntary mediation, but they can’t force a refund.
Complaints to attorneys general help them spot patterns and decide if they need to investigate. What happens next varies by state. Where a state gaming regulator oversees DFS, as in Pennsylvania, complaints go to that regulator.
DFS operators run their own responsible gaming tools, as there’s no federal self-exclusion scheme. If gambling stops being entertaining, you can call 1-800-MY-RESET for the next steps. Check our responsible gambling hub to learn how to set limits for yourself and prevent problem gambling.
DFS Operators We Cover
The daily fantasy sports operators we cover include Underdog, PrizePicks, DraftKings, and FanDuel. As there’s no federal licensing, it’s not a list of approved or registered operators. Each review covers state-by-state availability. Before you start playing, check the local status on the DFS legal states page, as eligibility doesn’t apply everywhere.
