The Pros And Cons Of Online Fantasy Sports

The reasons why players become part of fantasy football have been shown by majority of surveys inclining towards friendliness and gaining experience. They all are not in there for cash or prize money, most of the players play with an aim to enhance their sports experience and knowledge. All things considered, the federal law, UIEGA, cited fantasy football as a skill based game that is “determined predominantly by accumulated statistical results of sporting events, including any non-participant's individual performances in such sporting events” would not be considered as an act of unlawful

I would like to start off by explaining what fantasy football is and how it works. Fantasy football is all about constructing a virtual team made up of NFL players. At the start of any football season, everyone who want to be in the fantasy league gets together to have a draft. These team owners proceed to pick NFL players that they want for their team. Depending on what league someone is in determines what type of players an owner can put on their team. Typically a starting team will consist of one quarterback, a couple receivers and running backs, a kicker, a tight end, and a team defense. The owner with the first pick starts, this is usually the manager of the league. After he picks a player from the NFL, the next owner will pick a player and it goes down the line until all the owners have one player on their team. To make this process fair the owner with the last pick gets the first pick in the second round of the draft and then it will go up the line to the owner who had the first pick, and after the owner with

DraftKings and FanDuel should not be allowed to operate because it is not a game of skill. The two companies both claim that their daily fantasy sport league games are of skill, while others such as the New York State Attorney General, Eric Schneiderman, believes it is a game of chance. In a statement to The New York Times, FanDuel said

The bill would make internet gaming available to any person who is either physically present in Michigan or is otherwise permitted by law to place a wager in Michigan, which contemplates future liquidity sharing or compacts with other states. The Michigan Gaming Control Board would have oversight over all internet gaming operations (as it currently does with Michigan

It’s fall, which means that football season is officially back in full swing again. And with that comes fantasy football, a huge highlight for millions of Americans. It is estimated that every year, Americans spend some $15 billion each, roughly $450 per person who plays (that’s roughly 30 million people!) It is a massive, booming industry that seems to only be growing every year. There is a sharp downside to playing fantasy football, however. Gregg Sussman, a fantasy sports analyst working for RotoExperts.com, says that “Money is undeniably a large part of fantasy sports in general. Exchanging money in fantasy sports just makes every play of every game even more intense. For some people, winning is everything; for many, money is much more important than team success.”

Today, it is FanDuel and DraftKings who take advantage of the slow moving government and the unregulated system of daily fantasy sports. In an interview with Matt King, CFO of FanDuel, Walt Bogdanich, investigative journalist, states, “So you don't view what you do here at FanDuel as gambling,” and instantaneously King disagreed by saying, “No … Every time that you talk to our users, what comes through loud and clear is the fact that we're an entertainment product (The Fantasy Sports Gamble).” Basically, Bogdanich asks if King thinks FanDuel is gambling and he spontaneously disagrees that their product was just for the purpose of entertainment. Bogdanich goes on to ask if King believes that their product should be regulated, but King avoids answering with yes or no by saying that their product is all about entertainment value. Don’t get me wrong here, I don’t want to sound like someone who despises fantasy sports, but I just hate the fact that he’s only saying things that his lawyer allowed to him to

The best part of it all, is that DraftKings is completely legal, even in the US and Canada. There aren’t many gambling games which are legal there, but DraftKings is. Players can select from a large number of different sporting events on a daily basis, and

These leagues have been lobbying to help overturn the old law and make sports wagering legal nationwide. The National Basketball Association is currently in talks to receive a 1% “integrity & rights” fee from all sportsbooks. The 1% fee not only allows the NBA to be compensated for its intellectual property, but also allows the NBA to control and monitor wagering data to keep the integrity of the game. (Liptak & Draper) By following the NBA’s model, the NFL has an opportunity to not only grow their fan base but also increase their revenue

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

Betting on sporting events should be illegal throughout the United States in order to protect citizens from the threats posed by betting and gambling. Barbara Mantel states that “Americans spend billions of dollars a year betting on sports, the vast majority of it illegally through offshore websites, local bookies and office pools” (Mantel). Many Americans are under the impression that betting can earn you a lot of money when in reality it does the exact opposite. Sports betting does not impact just citizens, as athletes and sporting officials have been known to place bets on their events, and even throw matches to ensure bets go their way. Preventing sports betting can make amends to such issues like match-fixing, betting addictions, and illegal online betting websites.

Since the inception of fantasy sports companies, very few industries have grown this significantly in such a short time span. Since the surge in popularity of daily fantasy betting FanDuel and DraftKings have launched aggressive efforts to expand in order to reach the 51 million current fantasy sports users in the US and Canada alone. Although approximately 38% of Americans admitted to betting on sports in 2008, fantasy sports companies are also experiencing increased scrutiny from state regulators. Criticism stems from the belief that daily fantasy sports betting is considered to be online gambling and therefore should be illegal or heavily regulated at the state level. Multiple

was a 10% excise tax levied by the Federal Government on the amount of sports

Daily fantasy sports industry giants Draftkings and Fanduel were granted temporary emergency stay in New York and to continue their business operations in the state.

The Unlawful Internet Gambling Enforcement Act of 2006, or the UIGEA, had, in a nutshell, prohibited banks and payment processors from processing transactions that would correlate to online gambling. This has not only complicated loading accounts, but also withdrawing. While USA online casinos have continued to operate, they have had to use payment processors that would circumvent these restrictions. Sadly, the UIGEA was not even set to go into effect until December of 2009, thought the implications of the legislation had fall out that would be nothing short of catastrophic for many online gambling companies, especially those that relied heavily on the United States market.

Most of us have heard of fantasy football. Online fantasy has risen in popularity over the past couple of years, due to advances in technology. With this rise in popularity, it has raised eyebrows at the state and federal government levels. There are many grey areas when it comes to gambling online, that many people still don’t understand. Many questions are being asked, such as legal transactions with credit cards, is online gambling causing a problem with a rise in gambling addiction? Over the course of this report, I will go over the good and the bad of making online gambling legal and regulated.