FanDuel Pulling Daily Fantasy Sports Out of Ontario Over High Taxes, Registration Fee

High fees and taxes threaten to shut two million players out of paid daily fantasy sports contests in Ontario, according to the Fantasy Sports & Gaming Association.

The Alcohol and Gaming Commission of Ontario’s registration fee of $100,000, plus a 25% tax on revenue, have “made operating paid fantasy sports contests in the province impossible for almost every operator,” according to a news release from the association on Monday.

These rates are almost double what fantasy sports operators pay in the U.S., the news release states.

The association noted that an “exodus” of fantasy sports operators from Ontario has begun. FanDuel Daily Fantasy announced last week that it won’t offer paid or free daily fantasy contests in Ontario beginning this Friday.

Association Seeks Resolution from Elected Officials

The association is asking its member companies and fantasy sports players to contact elected officials in Ontario to express concern that their “ability to play paid fantasy sports contests is in serious jeopardy.”

The association said it will continue working with the Alcohol and Gaming Commission of Ontario to find a way for fantasy sports companies to operate in Canada’s most-populous province.

Fantasy Sports Operators Support Sports Betting Launch

The association said it supports the launch of commercial, single-event sports betting in Ontario beginning next Monday.

However, large registration fees involved in that endeavor are prohibitive for smaller fantasy sports contest operators, the association said.

“Paid fantasy sports contests operate differently than sports betting, iGaming or brick-and-mortar casinos, with low margins and player pools from multiple jurisdictions,” the news release states. “Ontario’s fees and regulations are large enough, however, that even the largest operators can no longer offer contests in the province.”