In a move to become the latest state to regulate daily fantasy sports (“DFS”), the Vermont Legislature has passed a bill defining fantasy sports games and directing the state attorney general and governor’s office to develop a registration fee and tax system for fantasy sports operators and players in the state. Additionally, the bill bars DFS operators, employees and their relatives from participating in such contests and also places restrictions on professional athletes. Finally, the bill regulates DFS advertising depicting minors and children and mandates that contest participants be at least 18 years of age.

Approximately 80,000 residents in Vermont currently participate in DFS contests—a number expected to increase as these contests grow in popularity not only in Vermont but throughout the country. If the bill is signed by the Governor, Vermont will become the 10th state in the nation to develop a legal framework for DFS and the 3rd state in 2017 to have done so.

TAKEAWAY: Daily fantasy sports continue to grow in popularity and state authorities and regulators are and will continue to find ways to remain on top of this growth. Advertisers who market or otherwise engage with fantasy sports should keep an eye on new regulations, including special requirements impacting the advertising of fantasy sports.