Why Fantasy Sports Websites Might Be in Trouble
With a new NFL season just starting to set in, sports fans everywhere are looking to daily fantasy sports for a piece of online gambling action. The favorite sports betting alternative has taken the country by storm, with a rising count of over 57 million participants now managing a team.
One crucial reason that has everyone signing up for online fantasy sports betting is the removal of a season-long commitment typically seen in fantasy leagues. Daily fantasy sports betting platforms allow team managers to draft a team that will only compete for one day or week. The new trending option lets leagues avoid season dampening injuries as well as cold streaks that would usually have fantasy players pulling their hair out.
The daily fantasy platforms are also set up with a virtual salary cap feature that can either be raised or lowered depending on the chosen league. With each professional athlete holding a salary value for the upcoming matchup, team managers will need to draft the most bang for their buck to win on any given Sunday.
The Culprit: Frank Pallone
Major leading platforms such as FanDuel and DraftKings are gaining more and more publicity via commercials and advertisements all over the web. However, the spotlight has also brought concerned lawmakers to speak their mind. One, in particular, is Democrat Frank Pallone of New Jersey, who sits on the Energy and Commerce Committee.
These sites are enormously popular, arguably central to the fans’ experience, and professional leagues are seeing the enormous profits as a result. Despite how mainstream these sites have become, though, the legal landscape governing these activities remains murky and should be reviewed.
The Cause For Concern
A leading cause for concern could be from the amount of revenue these daily fantasy platforms are hauling in a week. Though they act as the middleman between sports bettors, they still see an extremely high amount of profits as well as continual funding for future business. That being said, gambling industries for states such as Pallone’s New Jersey are losing some of the high output of gambling action to daily fantasy betting platforms.The New Jersey representative believes that fantasy sports betting is a game of chance.
Fans are currently allowed to risk money on the performance of an individual player. How is that different than wagering money on the outcome of a game?
Why Fantasy Sports is Legal in the First Place
Taking a look at the standing law behind the game gives sports fans a better understanding of why fantasy sports betting is even legal in the first place. In 2006, the Unlawful Internet Gambling Enforcement Act was put forth on a federal level to ban most forms of online gambling. Online fantasy sports betting was seen as a special case in the eyes of United States Congress and became exempt from the anti-gambling act. The reason being is that the game displays many knowledge-based variables that have a crucial impact on the outcome. Managers need to adequately analyze statistics, matchups, coaching strategies, and a lot more if they want to beat out the competition.
That being said, Congress deemed the online fantasy sports betting as a game of skill, which is legal in almost every state in the Union. For now, sites like DraftKings, FanDuel, and DraftStar are within legal boundaries. However, the present legislation could change if further regulation is deemed necessary.