It is important to note that at this time the Act does not apply to fantasy sports that meet certain requirements (specifically, whether the game is constituted as a “game of skill”), but with Nevada’s assertion that the game of skill argument doesn’t apply it will be interesting to see how things shake out. Profits and valuations for the major players in the industry like FanDuel and DraftKings have also been soaring as tens of thousands of new players signed up to play.
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Daniel Wallach, a sports regulation professional from Florida, stated the board’s determination just isn’t going to “trigger an extinction of fantasy sports from Nevada, forevermore”.
As it stands now, however, playing daily fantasy sports is like swimming at your own risk. Thanks to fantasy sports being specifically excluded from laws affecting online sports betting, FanDuel is not illegal in any way.
Joe Asher, CEO of sports book William Hill’s US operations, firmly believes that daily fantasy sports is “gambling and should be treated like all other legal gambling operations”, according to the Associated Press.
The two start-up companies have been reacting to concerns about the integrity of their games because of a recent data breach involving a DraftKings employee. In a joint statement, the companies said evidence so far shows no employee violated industry rules. “We have no knowledge of the specifics of any federal investigation but strongly disagree with any notion that our company has engaged in any illegal activities”. But these companies have basically co-opted what was once an entertaining hobby to participate in with family and friends, and have turned it into a cut-throat, stunningly legal, way to gamble on sports.
There are several states too that prohibit a few form of the game. The slog ahead for FanDuel and DraftKings could lead to sturdier positions in a more stable industry. Fans choose a virtual team made up of real players, and the teams win or lose based on the players’ real-world statistics on the field.
The other states that have banned daily fantasy sports without license are Arizona, Iowa, Louisiana, Montana and Washington.
Until now, the sites have been available in all but five states, where their legality has been called into question. Nevada saw almost $4 billion in sports betting in 2014 and the numbers have been increasing for years. Young stated the checks confirmed it, however “it doesn’t suggest we will disrespect state legal guidelines”.
“This is the first formal recognition of this as gambling, coming from the most prominent gaming jurisdiction in the country”. And commissioners for the Football Bowl Subdivision want DraftKings and FanDuel to stop offering college sports fantasy contests on their sites.
In Massachusetts, for instance, Attorney General Maura Healy has said that her office has been reviewing the practices of the daily fantasy operators. On Tuesday, U.S. Congressman Frank Pallone Jr. and Senator RobertMenendez, both New Jersey Democrats, argued for new safeguards.
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Menendez suggested thatUIGEA has created aregulatory vacuumand said Congress should reexamine the lack offederal oversight.Alongwith Pallone, he has called for the Federal Trade Commission to examine how it might regulate fantasy sports. Over time, competition between these sites will drive them to get better and improve internal controls as they compete for users who demand more transparent assurances of fairness. FanDuel, on the other hand, insists that it is a game of skill and not luck. Gambling, he wrote, “is a societal evil that preys on those most in need”.
