How Fantasy Sports Got Round Online Gambling Laws

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Fantasy sports are increasing in popularity in leaps and bounds and now a multibillion-dollar business. It is a type of game played over the internet, where one brings together imaginary or virtual teams of real players of professional sports. It is your fantasy team competing against each other; you choose players based on their actual recent performance. According to the Fantasy Sports Trade Association (FSTA), 56.8 million people indulge in this game and spend $465 annually on an average. Since 1980s fantasy sports have captured the imagination of many people, but daily fantasy sports (DFS) is a relatively new form of this game.

Federal action

  • Two major federal legislation influence fantasy games. The Interstate wire act (1961) disallows people to place a bet over the phone. Its implication is relevant over internet communication also. The other federal legislation is the Professional and Amateur Sports Protection Act (PASPA), which prohibits wagering on sports in general. Nevada`s sports wagering business, sports lotteries in Delaware, Montana and Oregon are exempted from this regulation because they were in business before the legislation passed in the year 1993.
  • These two legislations in hypothesis prohibit fantasy sports like judi online, but in reality, fantasy games were never confronted with fantasy games. The Interstate wire act (1961) is not relevant to this game as it prohibits gambling on games of chance, and fantasy sports have never been categorized as such. PASPA may not be relevant also, as fantasy games are not considered as gambling. Fantasy games hosted in league websites are promoted and advertised in television and radio.
  • The most pertinent law which has an effect on fantasy games is Uniform Internet Gambling Enforcement Act (UIGEA), which implicate gambling over internet illegal, which however includes explicit exemption, provided they meet three requirements. First, the value of the prize is independent of many players, second: the result is determined by the skill and knowledge of the player based on the real performance of the sportsperson and thirdly; the outcome cannot be resolute by a score of the game or individual player’s performance.

State Action

As there is no clear frame of law, these areas of fantasy sports remain ambiguous. Most states rely on the court verdict, public opinions and other laws to determine the legitimacy of fantasy sports within their jurisdiction. The dominant element test is the pedestal of the legality of fantasy sports, which accepts there is a percentage of chance involved in legal activities such as stock trading. If the skill and knowledge factor outweighs the chance variable, then it is not deemed as gambling. How fantasy sports got round online gambling laws is vague and ambiguous. Draftkings and FanDuel two pioneer DFS sites emphasize on being successful in fantasy sports you need a lot of skill and knowledge, and not a game of mere chance.

Fantasy sport is a booming industry with an estimate of $1.5 billion. Major media and internet entities like Disney, Yahoo, CBS have become key players in the world of fantasy sports. Fantasy sports have evolved and improved a lot since its journey in 1962.

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