A Farmer Of Louisiana, Not An Insider Trading Scandal

1036 Words Nov 19th, 2015 5 Pages
A farmer in Louisiana, not an insider trading scandal, will destroy the multibillion dollar daily fantasy sports (DFS) industry. DFS is a rapidly growing segment of the online sports gaming industry where popular sites have grown by approximately 300% over the last year and are currently valued at over $1 billion (Miller & Singer, 2015). Leung (2015) describes the basic DFS tournament as a weekly tournament where professional athletes are allocated a value based on past performance. She says that participants are allocated a ‘salary cap’ and create a roster based on the sum of those athletes’ values, until they reach their cap. Leung also shows how a participant’s score is determined by the performance of their selected athletes that week’s games. Participants who achieve the highest score in the tournament receive a portion of the fee pool as a reward (Leung, 2015). This new form of fantasy sports differs from historical fantasy football tournaments where tournaments continue over many weeks, and where the tournament’s outcome is less dependent on chance (Huffman, 2014). Huffman describes how the legality fantasy sports in a state is determined by that state’s assessment of the ‘chance’ involved in a game, which varies state by state (2014). Additionally, at a federal level, he asserts that DFS are legal under the Unlawful Internet Gambling Enforcement Act (UIGEA). However, if a site accepts a bet in a state that outlaws online gambling the site can be criminally…

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