New Mexico Struggling Over Daily Fantasy Sports

Until now, New Mexico hasn’t even been on the radar as far as regulating online gaming. But now, the Land of Enchantment is mulling over whether to regulate daily fantasy sports (DFS), or declare them illegal.

New Mexico residents can currently play on DFS sites like DraftKings and FanDuel because it’s an unregulated market, and DFS hasn’t been made illegal yet.

State officials would like to take the activity out of the gray area and define whether it’s legal soon.

Many residents are aware of the activity, thanks to a barrage of commercials last year at the start of the football season. But DFS popularity has dropped some due to legal battles in other states.

House Majority Leader Nate Gentry (R-Albuquerque) introduced a bill last year that would legalize the game and provide regulation. But according to the Albuquerque Journal, Gentry has no idea on what will ultimately become of his bill.

“There isn’t a straight answer right now,” he said.

Two versions of the legislation were distributed to the state House of Representatives and the state Senate. But neither bill received any action during last year’s 30-day winter session.

However, Gentry’s legislation will probably be looked at this winter, and he’s eager to get a take on how it’ll go over.

“The federal government specifically says that it is not gambling,” said Gentry. “There is some legislation that dealt with the issue at the federal level and it said that, one, it’s not gambling for the purposes of federal law, and two, it kind of leaves it up to the states to make a determination on whether it’s legal or not. So right now, it’s still an open question.”

Gentry is referring to the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which specifically left DFS out of legislation that prevents banks from knowingly accepting online gambling transactions where it’s illegal to do so.

New Mexico’s Gaming Control Act offers a different interpretation, declaring that any form of online gambling “in which, upon payment of consideration, a player receives a prize or other thing of value, the award of which is determined by chance even though accompanied by some skill” is illegal.

So far, New Mexico is one of 35 states that has yet to make a distinction on where skill-based games like DFS fall in the Gaming Control Action.

One person who clearly thinks that DFS isn’t legal is Donovan Lieruance, the acting executive director of the New Mexico Gaming Control Board.

“Our position is unchanged from our discussion last year,” said Lieurance. “DFS is not authorized under the Gaming Control Act.”

What Lieurance says may be true to a degree, but the New Mexico Gaming Control Board also has yet to thoroughly explore the legal position of DFS.

That will likely come this winter as the state struggles to figure out what to do with DFS.