Besieged on all sides, daily fantasy sports operators find themselves in retreat. DraftKings said it “will voluntarily pause” its operations in Hawaii in response to a ruling by state Attorney General Doug Chin 
that DFS is gambling and therefore illegal in the 50th state. That prompted prosecutor Keith Kaneshiro (right) to issue cease-and-desist orders to DraftKings and FanDuel. The alternative is to face prosecution for promoting gambling, a Class C felony.
The Hawaiian trouble comes at the same time that DFS is being chased out of Mississippi by state Attorney General Jim Hood. Bayou State law, he said, forbids wagering “upon any game, play, amusement … In our 
opinion, the possible existence of an element of skill in picking players in a fantasy sports game (or in picking between real teams when wagering on regular NFL games, or in picking horses in a horse race etc.) is irrelevant to any charge of gambling on fantasy sports under Section 97-33-1 of the Mississippi Code.” He likened DFS to sports betting and horseracing, both illegal in the state.
Setbacks like these have caused payment processor Vantiv Entertainment Solutions to pull out of the DFS business. It cited legal challenges, like the ongoing prosecution of DFS in New York State for its newfound circumspection regarding DFS.
The pastime is gaining traction, however, in some states. Regulation of DFS has been approved by the Indiana state senate and similar bills are making headway in New Mexico, California and Florida. FanDuel and DraftKings have been liberal with their campaign donations in the Sunshine State, showering PACs affiliated with state Sen. Joe Negron (R), state Rep. Matt Gaetz (R), Rep. Richard Corcoran (R), Rep. Steve Crisafulli (R) and Sen. Tom Lee (R) with a grand total of $70,000.
Unsurprisingly, this largesse inspired Gaetz to proclaim, “Government should have little to no involvement in the recreational daily lives of Floridians.” (Sunshine State Democrats also had their palms greased to the tune of $25,000). Senate Majority Leader Bill Galvano (R, right) evidently found the influence-buying too crass for his taste, returning $15,000 in PAC money. The big DFS push complicates negotiations over Gov. Rick Scott‘s compact with the Seminole Tribe, which opposes DFS as unwelcome competition for Florida discretionary dollars.
* Despite a 4% decline in table game revenues, Ohio casinos enjoyed such an increase in slot play (6%) that the state finished 2% ahead of last year. Caesars Entertainment continues to play a losing hand (-1.5%), while Penn National Gaming (+5%) and Pinnacle Entertainment (+19%) showed strength. Hollywood Columbus 
($17.5 million, up 7%) was the weakest of Penn’s properties, posting ‘only’ $172 win/slot/day. Hollywood Toledo ($15 million) saw slot revenue grow 10%, raking in $201/slot/day. Hollywood Dayton ($7 million) brought in an above-average $221/slot/day and Hollywood Austintown grossed $8 million on an out-of-sight $276 win/slot/day.
Results at Horseshoe Cleveland were flat, at $17 million, while Horseshoe Cincinnati eked out a 1% but ThistleDown Racino (aka Gilbert’s Folly) was down 9% on an $8 million. Pinnacle’s Belterra Park ($6 million), posted a relatively lowly $142 win/slot/day but continues to improve substantially on its dreadful opening numbers. Hard Rock Rocksino continued to tighten its stranglehold on the top spot in state, up 16% to $18 million. Miami Valley Gaming‘s racino was up 9%, to $11 million, and Eldorado Resorts‘ Scioto Downs ($12 million) rose 8%. So, if you weren’t Dan Gilbert‘s Rock Caesars Gaming, January was a good month for you.
