Are online fantasy sports legal? This question has been debated fiercely across America since the abounding profits these companies have made over the past few years. With over 33 million users, online fantasy sports have quickly become a favorite among Americans, as one in twelve internet users play in fantasy sports leagues online (Rainie). One other very important question to ask: Are online fantasy sports gambling? If online fantasy sports are found to be illegal gambling, businesses such as FanDuel and DraftKings will lose millions. Online fantasy sports leagues are a relatively new concept. The two “go to” companies, FanDuel and DraftKings,(Pagels) were founded in 2009 and 2012 respectively (Vaughn). The games offered by the two companies …show more content…
With only four states allowing sports gambling, many Americans were unable to gamble(Peltz). Since gamblers were unable to get their fix online, they needed a new gambling source. This was when online fantasy sports was born. Online poker games were not the only forms of betting to take a beating with the passing of the UIGEA. Any form of sports betting became outlawed. Before fans could make bets on any number of scenarios. For example, the Carolina Panthers will beat the Pittsburgh Steelers. Or the Pittsburgh Steelers running back will run for two touchdowns today. The UIGEA strictly prohibits any bets on a single event, multiple events, or individual performances. One exception to the UIGEA is betting on multiple individual performances. These bets are the exact same bets found in online fantasy sports matches. In actuality, since a player chooses the players used in their line ups, the games are legal. Adding on to this, since the games are not based on a single players performance, the games are legal (“Fantasy Sports …show more content…
The first is an entry fee. In the games that FanDuel and DraftKings offer everyone must pay an entry fee in order to enter the games. These fees can range from twenty-five cents to upwards of five thousand dollars (Harwell). The second criteria: a prize. This condition is met whenever a player wins the game. All of the games offered have payouts to the top players. The final, and hardest condition to meet, is whether or not the games offered by DK and FD are based on chance. While DK and FD claim their games are based upon the skills of the players. This is justified by saying that the players choose their own lineups and the outcomes are based on who the players choose. With no clear definition of sports betting or fantasy sports, it becomes difficult to prove the legality of these