North Carolina Bans Pick'em-Style DFS Games in New Sports Betting Rules

The North Carolina State Lottery Commission (NCSLC) has made a groundbreaking decision by proposing new sports betting regulations that include a ban on pick'em-style daily fantasy sports (DFS) games. This move comes after the state of North Carolina officially legalized sports betting earlier this year, making it one of the recent states, along with New York, to focus on pick'em DFS games.

According to North Carolina's proposed regulations, fantasy contests are defined as "fantasy or simulated games or contests in which one or more fantasy contest players compete, and winning outcomes reflect the relative knowledge and skill of the fantasy contest players." These contests are primarily determined by the accumulated statistical results of individual performances, including athletes in sporting events. This stipulation means that DFS operators like Underdog Fantasy, which operates in North Carolina, might face challenges when sports betting launches.

However, the Coalition for Fantasy Sports, representing companies like Underdog Fantasy, PrizePicks, and Sleeper, is optimistic about the future. They believe that the North Carolina state legislature has ensured that fantasy sports can still be offered in the state. The coalition expressed confidence that the Lottery Commission would establish rules that align with the legislative intent.

"We look forward to participating as stakeholders in the rulemaking process, just as we worked alongside the legislators this past session to protect fantasy sports that North Carolinians have played for years," the coalition stated.

The NCSLC's proposed ban on pick'em-style DFS games does not apply to five specific game types. These exceptions cover games based on proposition wagering that mimic other forms of sports betting and situations where a person creates a fantasy team comprising a single player or an entire "real-world" team. Additionally, games where players can choose whether an athlete or a real-world team will surpass a specified statistical achievement, such as points scored, are not included in the ban.

This development has significant implications for the future of DFS gaming in North Carolina, as the state continues to shape its sports betting landscape.