Transcript
Are Daily Fantasy Sports Games
Legal?Warsaw Sports Marketing
Center Undergraduate Program Manager /
Instructor Mini-Lecture
Joshua Gordon, JD, MA
February 1, 2006 letter addressed to Members of Congress and written by then-General Counsels of the NFL, MLB, NBA and NCAA as well as the then-Deputy Commissioner of the NHL. That letter asked Congress to pass the UIGEA “in order to preserve the integrity of our respective sports.” It further stated, “[a]llowing rampant sports gambling can cause a cynical and suspicious perception of athletic events, in place of the traditional American values they should represent.” Near its conclusion, the letter reads, “[t]he Unlawful Internet Gambling Enforcement Act does not change the law with respect to what is currently legal and illegal, but it adds important and workable enforcement tools that will prevent . . . illegal Internet gambling transactions even when the websites are operated offshore.”
UIGEA
31 USC 5361 Unlawful Internet Gambling Enforcement Act (UIGEA) explicitly states that it shall be considered “unlawful internet gambling” when a person stakes or risks something of value upon the outcome of a sporting event. Critical exclusions include participation in any fantasy sports game.
Section 1(E)(ix)(II) of the UIGEA requires that “[a]ll winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events.”
In a report released in early April 2015, Star Fantasy Leagues in conjunction with Gaming Laboratories International revealed that a skilled player won roughly 70% of the time in Star Fantasy Leagues’ daily fantasy sports “salary cap” competitions over the course of an NFL season.
On an Opening Day game between the Washington Nationals and New York Mets, MLB Commissioner Rob Manfred provided his position on sports gambling and fantasy sports. “The difference is one’s legal and one is not,” said Manfred. “It’s a pretty definitive line.”
DraftKings employee Ethan Haskell reportedly won $350,000 on a $25 bet on FanDuel, resulting in accusations that Haskell had, in effect, engaged in insider trading from a data leak around certain NFL stats and lineups.
Source: http://www.adweek.com/news/technology/draftkings-and-fanduel-ban-staffers-playing-fantasy-football-money-167434
Source: WSJ 10/16/2015 https://www.youtube.com/watch?v=sC2zwtyF3tM
11/9/15 NY AG Eric Schneiderman Cease and Desist letter saying games constituted illegal gambling under state law
“a person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence.”
“ Daily Fantasy Sports are creating the same public health and economic concerns as other forms of gambling, including addiction. Finally, FanDuel’s advertisements seriously mislead New York citizens about their prospects of winning.”
DraftKings Millionaires Commercial
FanDuel “anybody can play, anybody can succeed”
How DFS differs from traditional fantasy sports? (NY AG argument)
Traditional Fantasy Sports• traditional conduct a competitive draft• compete over the course of a long season• repeatedly adjust their teams• play for bragging rights or side wagers• host sites receive most of their revenue from administrative fees and
advertising
DFS• sites hosting DFS are in active and full control of the wagering• set prizes, control relevant variables, and profit directly from the
wagering• designed for instant gratification, stressing easy game play and no long-
term strategy
DISCUSSION
Is DFS legal?
What is the future of DFS?
Other thoughts?
top related