Paid Daily Fantasy Sports Contests to End in Idaho

TWIN FALLS, Idaho (KLIX) – Two companies offering paid fantasy sports contests in Idaho will no longer be able to do so after an agreement was reached between the companies and the state attorney general's office.

The agreement took effect Sunday. Under its terms, the companies – Draftkings Inc. and FanDuel Inc. – will no longer allow consumers in Idaho to participate in any of their daily paid online fantasy football, baseball, basketball and other sports contests, according Idaho Attorney General Lawrence Wasden.

Both companies agreed to process requests by Idaho participants to withdraw their account balances in a timely manner, according to the release. They will monitor Idaho players based on geoblocking technology or through IP addresses.

“The concern I have is that the paid daily sports offerings provided by these companies constitute gambling under Idaho law,” Wasden said in a prepared statement.

Wasden began a review of the companies and their websites in January amid concerns regarding the legality of the daily fantasy sports contests offered by those companies, according to the news release. The Idaho Constitution prohibits gambling except for the state lottery, pari-mutuel betting as well as bingo and raffle games.

“Idaho defines gambling, in part, as risking money or other thing of value for gain that is contingent in whole or part upon chance or the outcome of an event, including a sporting event,” Wasden said in the release.

“My concern is that the daily fantasy sports offerings my office reviewed require participants to risk money for a cash prize contingent upon individual athletes’ collective performances in various future sporting events. As I see it, this falls within Idaho’s definition of gambling.”

Nothing in the agreement precludes FanDuel or DraftKings from offering free daily fantasy sports leagues or other free contests that offer prizes to players in Idaho.

Information in the agreement does not constitute an admission of liability or evidence of wrongdoing by the companies, Wasden said.