In 2006, the Unlawful Internet Gambling Enforcement Act (UIGEA) established that it was illegal for U.S. citizens to participate in certain forms of Internet gambling, namely casino and sports gambling. While the law was directed at both those parties who provide the services and those who participate, participants have largely been ignored short of being too brazen about their activities. This has allowed U.S. citizens to frequent online sites and take advantage of free bets just like anyone else would from countries where online gambling is legal.
One interesting aspect of the UIGEA was a special carve-out for fantasy sports. According to the law, playing fantasy sports is a skill that requires effort, not luck. In should be noted that several
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In an effort to clarify state's position on fantasy sports, a new bill has been introduced by Senator Curtis Hertel. Under his new legislative proposal, fantasy sports would be legally classified as a "game of skill," which would put it beyond the scope of state's laws banning Internet or online gambling.
Until the new bill is passed, this new revelation that Michigan's laws might be interpreted to prohibit fantasy sports has thrown many of the country's most popular fantasy sports sites for a loop. Until now, all of these sites have been accepting players from Michigan without hesitation. Now that the MGCB has become involved, fantasy sports sites are scrambling to decide whether or not it is in its best interest to continue accepting residents from the state.
The Fantasy Sports Trade Association, which represents many of the largest fantasy sports sites in the country, have hired lobbyists to help push the new legislation through sooner rather than later. At risk is an estimated 10,000,000 fantasy sports players who currently reside in Michigan. If these sites are forced to remove that many fantasy sports participants from its rosters, it could have a tremendous impact on the bottom line for some of the smaller