Maryland DFS regulations go live
New rules force operators to pay the state’s 8.25% corporation tax
Maryland has officially enacted its regulatory framework for the DFS industry, as the state seeks to “ensure the games are fair and that winners pay appropriate Maryland taxes”.
The new rules, which were drafted in July, came into effect on Monday.
The regulations see DFS firms pay the Maryland corporate tax rate of 8.25% and impose several ‘equality’ measures such as a monthly deposit limit of $1,000, and a ban on the use of third-party scripts.
“Daily online fantasy sports games have a significant presence in Maryland,” said state Comptroller Peter Franchot, whose office introduced the rules.
“It is entirely appropriate that we enforce basic rules to ensure the games are fair, anti-competitive abuses are declared out of bounds, and appropriate taxes are paid.”
Franchot was also quick to point out that the rules didn’t apply to “traditional, season-long fantasy leagues run by companies like Yahoo and ESPN that attract office co-workers, softball teammates or church groups”.
Maryland was the first state to try and rubber stamp the legality of DFS back in 2012, when its General Assembly passed legislation asserting that fantasy sports were not subject to state prohibitions against wagering.
However the state’s Attorney General has since questioned the legitimacy of the law and asked the assembly to revisit the topic.