MONTGOMERY (TAB) — Alabama Attorney General Luther Strange has determined that paid daily fantasy sports contests constitute illegal gambling and announced today that he has issued cease and desist letters to DraftKings and FanDuel.
The results of fantasy sports contests depend to a large degree on chance, which is the definition of gambling under Alabama law — when a person stakes something of value on a contest of chance to win a prize.
“As Attorney General, it is my duty to uphold Alabama law, including the laws against illegal gambling,” Strange said in a press release. “Daily fantasy sports operators claim that they operate legally under Alabama law. However, paid daily fantasy sports contests are in fact illegal gambling under Alabama law.”
Alabama is among 11 other states where paid daily fantasy sports contests are illegal.
Strange did not comment on the status of two bills, SB114 and HB56, that are currently being considered in Alabama Legislature and seek to establish the Fantasy Contests Act to regulate the operation of fantasy or simulated sports contests.