The weather forecast in Pennsylvania will no longer include DraftKings’ NFT-based fantasy contests under the DraftKings Reignmaker banner.
Last Thursday, DraftKings posted the following message to users on Discord:
“After consultation with the Pennsylvania Gaming Control Board and until further notice, DraftKings will no longer allow customers physically located in Pennsylvania to enter Reignmakers contests as of 5PM ET today, October 6, 2022. Additionally, if you entered a lineup for any upcoming contest, including for tonight’s game, it will be removed.
The decision relates only to Reignmakers contests while you are physically located in Pennsylvania. You are permitted to enter Reignmakers contests when outside of Pennsylvania in states where the contests are offered. You can also continue to use DraftKings’ other products in Pennsylvania, including daily fantasy sports, sports betting, and iGaming.”
SportsHandle reached out to the PGCB about the decision and a spokesperson confirmed Reignmakers contests had not been submitted to regulators for approval. DFS is regulated in Pennsylvania and under the purview of PGCB along with online casinos and sports betting.
Many states have been reticent to regulate anything related to cryptocurrency and online gambling because of the stringent anti-money laundering (AML) standards in the US. President Joe Biden’s administration has encouraged more acceptance of NFTs and cryptocurrency, which is something the American Gaming Association (AGA) has echoed as well.
Nonetheless, PGCB has generally been more conservative than some other regulatory agencies when it comes to online gambling. For example, when the DOJ interpretation of the Wire Act was in question, Pennsylvania imposed extremely strict standards and delayed online poker playing pooling.
It is unclear whether or not DraftKings will submit Reignmakers for approval or if Pennsylvanians will be excluded from the contests for the long-term.