Indiana grants first DFS licenses

indiana

Credits: Bloomberg

Three daily fantasy sports companies received licenses to be able to operate in the state as the IGC voted in favor of their business.

US.- The Indiana Gaming Commission (IGC) granted DraftKings, FanDuel and FantasyDraft the permission to operate in the state as the three companies had temporary licenses whilst waiting for a final resolution.

Despite the good news for the three biggest operators in the country, thirteen companies suspended their business in the state after they didn’t apply to get a permanent license. All of them had temporary permissions, but Sara Tait, Executive Director of the Indiana Gaming Commission had announced that every party had plenty of notice that they should end operations in the state as of July 1.

Companies that want to operate in the state must pay an initial licensing application fee of US$50k, and a renewal annual fee of US$5k. The regulations that were signed into law by now the current VP of the United States, and current governor of Indiana, Mike Pence, on March 2016, established that players have to be at least 18 years old in order to participate in the activity, whilst college and high school sports are banned. Nevertheless, the IGC wants to implement a full DFS regulatory framework in the upcoming months.

The IGC reiterated its commitment to make the process fair and transparent and to create a common sense regulatory framework that includes appropriate consumer protections and allows contestants to participate in paid fantasy sports in a lawful and safe manner. According to the Fantasy Sports Trade Association, there are 50k  to 150k DFS players in Indiana. The Legislative Services Agency estimates the state revenue that would come from licensing fees, could amount from US$175k to US$335k annually.