But that’s probably not a surprise, considering the monsoon of ads we saw from DraftKings and rival FanDuel during the first weekend of NFL action (and a big Saturday in college football).
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But in that law, the 2006 Unlawful Internet Gaming and Enforcement Act, fantasy sports were specifically protected as games of skill, not chance. D-NJ, is crying foul, requesting that Congress reconsider the leagues’ legal status. The FanDuel homepage blares “Chris Prince from Detroit has won over $724,938!” Fantasy-sports defenders say the players are being rewarded for their knowledge of picking players, not just paying up in hopes they’ll get lucky. (NASDAQ:YHOO) could emerge as the most profitable player in the daily fantasy sports marketplace.
The companies have exploded in growth in the past couple years, thanks in large part to professional sports leagues buying in and partnering in an arena where they have previously steered clear.
Traditional gambling companies, though, don’t want to risk lucrative gambling licenses by dipping their toes in the fantasy pool, Wallach said. NHL Commissioner Gary Bettman has somewhat waffled on the subject, seemingly resigned to the inevitability of legal gambling while remaining concerned about its effects, to which he thinks hockey would be less susceptible than higher-scoring sports such as basketball and football.
The sites have enjoyed a remarkable rise without much questioning of their legality, because by definition they are operating carefully within a loophole of the United States’ sports gambling laws. And they’re growing fast, with DraftKings alone adding 1 million new players so far this month.
“As extra money flows into fantasy sports activities and the character of the video games begins to extra intently resemble playing (somewhat than an off-the-cuff social recreation), the danger of a legal prosecution heightens”, wrote Daniel Wallach, a lawyer with the Fort Lauderdale workplace of Becker & Poliakoff, in a current evaluation of Florida regulation. Members are also welcome to attend FSTA events, including the upcoming 2016 winter conference in Las Vegas, where members will hear firsthand about the latest innovations in fantasy sports. Addiction counselors. (It did not say “stick” but it rhymes with stick, and it was hilarious to see them standing next to each other.) Ah, yes, it is football season again.
“Team involvement in daily fantasy sports also raises questions of whether players or league personnel, who may be able to affect the outcome of a game, should be allowed to participate in daily fantasy sports”, he said. But wait, these sites claim, it’s not gambling – you simply pay an entry fee and you might win a prize.
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Yet the money some fantasy sports operators are earning have made this unavoidable for Congress.
