Welcome Back Virginia Residents To The NFFC

[Greg Ambrosius]

Just a heads up that we are renegotiating our fantasy sports license with the state of Virginia right now and as a result Virginia residents can no longer sign up for the NFFC. We took Virginia off Registration last week and it will remain off Registration until our new license is secured.

We were one of a handful of industry companies to originally agree to the $50,000 licensing fee a couple of years back, but recently we learned that Virginia would be changing their licensing fees process. We continue to talk with the state Gaming Commission and hope that a new license for all SportsHub Games Network companies will be secured in a couple of months. Until then, we can not take any new signups from Virginia residents.

We fully expect to be licensed before the start of the football season and hopefully weeks before that, so stay tuned. It's in everyone's best interest to get this done in a timely fashion and we know the state agrees. Thanks for your patience all and good luck this season.

[Greg Ambrosius]

While we are still working with Virginia on a new license for 2019, there appears to be some good news on another front. Iowa legislators yesterday cleared the way for a sports betting bill that includes language to allow residents to play pay fantasy sports contests. This bill still needs to be signed by the Governor, but if signed it could go into effect by July or August.

Here's the details:

https://www.desmoinesregister.com/story ... 539191002/

There isn't a lot of language in this story about DFS, but there is language in the bill that allows pay-to-play fantasy sports. I'm still trying to get feedback on season-long, but I'm told that is included as well. Game operators would need a license in Iowa, but I guarantee you we'd be interested as soon as they became available. Hang tight Iowans, we might be close to allowing you to play again in the NFFC, NFBC and NFBKC.

[Greg Ambrosius]

Just a heads up that Virginia did come out with its new state guidelines for a pay-to-play fantasy sports license yesterday and the operator's fee was reduced from $50,000 to $8,300. We are in the process of re-applying for that license and hope to have good news in a reasonable time. Thanks for your patience all.

[Former-Army-Person]

Excellent, thanks.

[Greg Ambrosius]

In the past few months, there has been more movement on the legalized sports betting front and in turn legalizing fantasy sports in some states. One of the five exempt states for fantasy sports game operators -- including the NFBC and NFFC -- has been Iowa. We have not allowed Iowans to compete in our contests for the last few years, but that could change this year.

Another exempt state that was close to joining the non-exempt states was Louisiana. Their residents passed a fantasy sports bill in 47 of 64 parishes in November to legalize paid fantasy sports games, but this month the state legislature failed to pass regulations that would allow it. Louisiana remains an exempt state and it looks like nothing will change there for at least the next two years. What a shame after the people had spoken.

Anyway, the FSTA continues to push hard in a lot of these states and the organization worked especially hard in Iowa. Here's an update from Peter Schoenke of the FSTA on a few of the fantasy bills working their way through the states:

IOWA
Iowa Governor Kim Reynolds signed a law in May that sets up sports betting in the state and also enables paid fantasy sports contests. Iowa was one of the five "any chance" states with laws that were always non-conducive for paid fantasy sports contests. The Iowa Racing & Gaming Commission will oversee paid fantasy sports contests and has already started taking applications with a goal of getting operators running in the state by August. SportsHub Technologies has started the application process and hopes to be legal in Iowa as soon as the state allows it.

ALABAMA
A bill was signed into law last week that confirms the legality of paid fantasy sports contests and adds consumer protection measures. The 2019 law includes an improved registration fee for smaller operators. Operators with national gross fantasy contest revenues under $10 million in revenues pay $1,000. The bill contains a 10.5% tax for in-state net revenue (after prizes are paid).

VIRGINIA
The regulator of the commonwealth’s paid fantasy sports law, the Office of Charitable & Regulatory Programs, has decided to lower the annual registration fee to $8,300 from $50,000. Effective July 1, 2019, the annual registration fee will be $8,300 for initial and renewal registrants for fiscal year 2020 and 2021. SportsHub Technologies has already applied for a renewal of our current license and hopes to be taking Virginia applications again in early July.

TEXAS
A bill that would confirm the legality of paid fantasy sports contests and included no registration fees or taxes passed the Texas House. However, the bill was not brought up in the Senate before the legislature adjourned. The Texas legislature is not scheduled to go into session again until 2021.

LOUISIANA
While a statewide referendum in November 2018 passed 47 of 64 parishes to allow paid fantasy sports contests, the Louisiana legislature still needs to enact a law to enable and regulate paid fantasy sports contests. Unfortunately that did not happen by the end of the 2019 legislative session. A bill passed the House and Senate that would set regulations for paid fantasy sports contests, but a corresponding bill to set a tax rate did not pass. Paid fantasy sports contests needed both bills to pass to move forward in the state. Since Louisiana is not able to take up bills involving taxes in 2020, the effort to get paid fantasy sports contests live in Louisiana will unfortunately have to wait until 2021.

[Former-Army-Person]

VIRGINIA
The regulator of the commonwealth’s paid fantasy sports law, the Office of Charitable & Regulatory Programs, has decided to lower the annual registration fee to $8,300 from $50,000. Effective July 1, 2019, the annual registration fee will be $8,300 for initial and renewal registrants for fiscal year 2020 and 2021. SportsHub Technologies has already applied for a renewal of our current license and hopes to be taking Virginia applications again in early July.

Woo-hoo

[Former-Army-Person]

Any update on this?

[Darik B]

We're hoping to hear tomorrow (Monday July 15th) about this...hang tight. It's coming.

[Greg Ambrosius]

FINALLY GOOD NEWS: Virginia has received our application and we are good to go in Virginia again. We are adding Virginia back to Registration now and you'll be able to sign up for any NFFC, NFBC, NFBKC, NFHC, CDM or Fanball contest once again. Sorry for the delay, but we're happy to be licensed in Virginia again.

As you know, we were licensed in Virginia the last two years, having paid an initial fee of $50,000. The state changed its fantasy law this year and requested all licensees and non-licensees to stop taking state registrations until the new license was available on July 1st. It has been 3+ months since Virginia residents were allowed to sign up for our new games, but thankfully the wait is over.

Tom and I will take care of the folks who asked us to secure their spots, but otherwise jump in now if you've been left out and join us in Las Vegas, New York or Online for the best NFFC season ever. Thanks all and good luck.

[Darik B]

Boom!