Daily fantasy sports bill signed into law in Virginia - CNET

Virginia on Monday became the first state to approve regulations outlining how daily fantasy sports websites can operate legally within its borders.

Virginia Gov. Terry McAuliffe signed into law the "Fantasy Contests Act," a bill that distinguishes daily fantasy sports sites like DraftKings and FanDuel from gambling sites. McAuliffe's approval comes amid a flurry of legislative debate over whether such sites constitute illegal gambling.

DraftKings applauded the new law.

"Today, Virginia became the first state in the nation this year to put in place a thoughtful and appropriate regulatory framework to protect the rights of fantasy players," DraftKings said in a statement. "We thank Goveor McAuliffe for his leadership and advocacy and are hopeful that other states across the country will follow Virginia's lead. We will continue to work actively to replicate this success with dozens of legislatures and are excited to continue these efforts."

The daily fantasy sports industry has experienced huge growth in recent years, generating an estimated $2.6 billion in entry fees in 2015 alone, according to Eilers Research. But that rapid growth has led to questions about the legality of such contests, which offer cash prizes to contestants who compete in abbreviated daily versions of the traditional season-long fantasy sports leagues.