Recently, online fantasy sports leagues like FanDuel and DraftKings have been in the news due to an ongoing battle over their legality. FanDuel and DraftKings are daily fantasy sports leagues where players select fantasy teams and place money on their team’s performance.
The sites allow users to win large sums of cash online without any government oversight. There is currently a heated debate over whether these sites classify as online gambling, and therefore are subject to state gambling laws.
The sites are games of skill, not luck
by Ezra Pine
It’s just another Sunday afternoon: you’re sitting on the couch watching another sub-par performance by the Redskins. But, this isn’t just Sunday. It’s fantasy football Sunday. Desean Jackson, one of the wide receivers in your FanDuel lineup, suddenly breaks free for a 99-yard touchdown. Next thing you know you have $1 million sitting in your wallet.
Online sports gambling sites provide entertainment and a cash incentive to millions of people. By no means is winning large sums of money on these sites easy, but it’s possible.
FanDuel and DraftKings are both worth over $1 billion, and they’re currently partnered with more than half of NBA, NFL and MLB teams. These sites have a key influence on professional sports, since their advertisements constantly generate money for important sports businesses like Fox and NBC sports. Altogether, the two sites have paid over $206 million for television ads.
If courts shut down these companies, main investors like pro sports teams and TV networks like ESPN will lose millions of dollars in revenue. Businesses need these investments for growth.
In a Nov. 10 statement, FanDuel said it’s unfair for politicians to tell thousands of people they’re not allowed to play these games. A politician shouldn’t be allowed to take away the excitement that’s associated with sites like FanDuel and DraftKings.
Additionally, the websites supply jobs and income for many families. In 2014, FanDuel gave out $560 million to users through individual contests and brought in $363 million through ads and investments. This stimulates the economy because money is constantly distributed to either the company or the users playing on the site.
Federal law states that online gambling sites that entail luck are illegal. However, FanDuel and DraftKings aren’t games of luck—they’re games of skill. They require prior knowledge and research to successfully pick players who perform well. Picking uncommon players is a common skill used, as this boosts users’ standings if that player does well. If you have a strong reason to believe a specific player will do well based off research, you can pick him.
The opposition claims that these sites aren’t regulated enough to be legal and take advantage of consumers. But that’s based on the 2006 Unlawful Internet Gambling Enforcement Act, which regulates the financial output of online sports gambling companies. Under those constraints, FanDuel and DraftKings have still managed to stay in business and meet the law’s requirements.
Around 56 million people play online fantasy sports, and this number is only growing. Whether it be for a profession or simply just a hobby, FanDuel and DraftKings provide excitement and income for the lives of millions of Americans and shouldn’t be shut down.
The sites are forms of online betting must be regulated
by Luke Graves
Online daily fantasy sports sites such as DraftKings and FanDuel are a source of corruption and underage gambling and they should to be classified as illegal online gambling.
In the U.S., gambling has only been legal with government oversight and regulations.The online gambling industry doesn’t have these regulations and therefore is more prone to corruption.
New York Attorney General Eric Schneiderman opened an investigation on both DraftKings and FanDuel Oct. 6 in response to claims from users that company employees used inside information to win money using the other of the two sites. The FBI began a similar investigation Oct. 14, which is yet to be concluded.
The claims were filed after DraftKings employee Ethan Haskell leaked data about current player standings and salaries on DraftKings’ largest online contest. A week later, Haskell won $350,000 in a FanDuel league.
In addition to corruption, the lack of oversight also allows for an increase in gambling-related crime, specifically underage gambling.
According to an Annenberg Public Policy Center report, between 2008 and 2010, the percentages of males age 14-17 participating in online gambling rose 4.5 percent. This is more than any other category of gambling.
Sites such as DraftKings and FanDuel have taken only limited measures to prevent underage gambling. On DraftKings, in order to access the site, a player must simply state that they are at least 18 years old. No other measures have been taken by either company.
The sites currently lack sufficient age verification and serve as an easier means for minors to gamble.
As of today there aren’t enough regulations on the growing online gambling market to allow sites such as DraftKings and FanDuel to be legal.
Some states have already taken action. New York became the most recent state to declare online fantasy sports leagues illegal Oct. 10, though the legality of the sites in currently being determined in New York’s appellate courts. New York would join a list of six states that classify these sites as illegal online gambling.
“Daily Fantasy Sports is nothing more than a rebranding of sports betting,” Schneiderman said in a memorandum to the New York Supreme Court. “It is plainly illegal.”
Fanduel God • Feb 2, 2016 at 6:24 pm
As a person who has won thousands of dollers playing fanduel, how is this possibly a game of luck? The players who put in the hard work, time, and dedication to win do on average win more money and therefore proving this game is of skill. If lotteries, horse races, and scratch offs are legal and protected under the law to anyone over 18, then there’s absolutely no reason fanduel shouldn’t be.