Why Playing Fantasy Sports Is Legal (For The Most Part)

You've seen and listened to the Fantasy Sports League, and you may have participated. The Fantasy Sports League, which has tens of millions of people per season, is a $ 1 billion industry, and is gradually being hooked on Americans.

Check out the fantasy sports contest legislation tracker for interactive charts for each state law and regulations on the Daily Fantasy Sports Contest.

Recently, new websites have appeared during the season and in some cases, in one game, that can bet on thousands of professional athletes in each game. These websites have a great interest from fantasy sports participants and investors trying to share profits, and forms an industry that is booming. But there is one important question in the shadow of such activities: Is fantasy sports betting legal?

State Level Regulation

The law on fantasy sports betting varies from state to state, but most states agree that fantasy sports are considered a skill game and fantasy sports betting is legal. Therefore, fantasy sports betting are legal. The problem is to determine what a skill game or its opposite is accurately configured. The process of determining whether it is a skill game or not varies from state to state, so here is the Texas state.

The Texas Criminal Code (hereinafter referred to as "TPC") excludes "good intentions contests for determining skills". Unfortunately, there is no further debate about what is needed to meet the skill requirements. In addition, the Texas court repeats the word "accidental game", but has not defined it. Due to the lack of information, we have to rely on the normal or common sense of "accidental games". Most states follow the same approach, with some differences. However, some states, such as Arizona, Iowa, Louisiana, and Montana, have a very unclear framework of games of accidental games and skills. < SPAN> I've seen and heard the Fantasy Sports League, and may have participated. The Fantasy Sports League, which has tens of millions of people per season, is a $ 1 billion industry, and is gradually being hooked on Americans.

Check out the fantasy sports contest legislation tracker for interactive charts for each state law and regulations on the Daily Fantasy Sports Contest.

Federal Level Regulation

Recently, new websites have appeared during the season and in some cases, in one game, that can bet on thousands of professional athletes in each game. These websites have a great interest from fantasy sports participants and investors trying to share profits, and forms an industry that is booming. But there is one important question in the shadow of such activities: Is fantasy sports betting legal?

The law on fantasy sports betting varies from state to state, but most states agree that fantasy sports are considered a skill game and fantasy sports betting is legal. Therefore, fantasy sports betting are legal. The problem is to determine what a skill game or its opposite is accurately configured. The process of determining whether it is a skill game or not varies from state to state, so here is the Texas state.

• The Texas Criminal Code (hereinafter referred to as "TPC") excludes "good intentions contests for determining skills". Unfortunately, there is no further debate about what is needed to meet the skill requirements. In addition, the Texas court repeatedly uses the word "accidental game", but has not defined it. Due to the lack of information, we have to rely on the normal or common sense of "accidental games". Most states follow the same approach, with some differences. However, some states, such as Arizona, Iowa, Louisiana, and Montana, have a very unclear framework of games of accidental games and skills. You've seen and listened to the Fantasy Sports League, and you may have participated. The Fantasy Sports League, which has tens of millions of people per season, is a $ 1 billion industry, and is gradually being hooked on Americans.
• Check out the fantasy sports contest legislation tracker for interactive charts for each state law and regulations on the Daily Fantasy Sports Contest.
• Recently, new websites have appeared during the season and in some cases, in one game, that can bet on thousands of professional athletes in each game. These websites have a great interest from fantasy sports participants and investors trying to share profits, and forms an industry that is booming. But there is one important question in the shadow of such activities: Is fantasy sports betting legal?

The law on fantasy sports betting varies from state to state, but most states agree that fantasy sports are considered a skill game and fantasy sports betting is legal. Therefore, fantasy sports betting are legal. The problem is to determine what a skill game or its opposite is accurately configured. The process of determining whether it is a skill game or not varies from state to state, so here is the Texas state.

A New Uncertainty

The Texas Criminal Code (hereinafter referred to as "TPC") excludes "good intentions contests for determining skills". Unfortunately, there is no further debate about what is needed to meet the skill requirements. In addition, the Texas court repeats the word "accidental game", but has not defined it. Due to the lack of information, we have to rely on the normal or common sense of "accidental games". Most states follow the same approach, with some differences. However, some states, such as Arizona, Iowa, Louisiana, and Montana, have a very unclear framework of games of accidental games / skills.

What’s It All Mean?

Choosing a perfect fantasy team requires a lot of skills. Success in the Fantasy Sports League requires a general manager's business sense, professional scout knowledge and expertise, and head coach strategies. The more bet money increases, the more work of scouting your opponent, considering the best matc h-up, and reviewing the season statistics to predict future performance. All tasks needed to succeed in the Fantasy Sports League mean that in most states, fantasy sports are considered a skill game, and related bets are legal.

Daily Fantasy Sports: Industry Trends, Legal and Regulatory Issues, and Policy Options

In 2006, the parliament passed the Unlawfer Internet Gambling Enforcement Act, which handles gambling on the Internet, and has passed the UIgea. In this law, fantasy sports are particularly excluded:

Participation in fantasy sports, simulation sports games, or educational contests (when games and contests include teams and teams), fantasy teams and simulation teams belong to amateurs or professional sports organizations. It is not based on the current members and meets the following conditions.

All prizes and prizes provided to the winning participants are set in front of the game or contest, are informed by the participants, and the value is determined by the number of participants and the amount paid by the participants. Not.

All wins and losses reflect the relative knowledge and skills of the participants, accumulation of statistical results of individuals (athletes in sports events) in multiple or other events in reality. It is mainly determined by.

Any winning and losing results are based on a single team in the real world or a combination score, point spread, performance, or b) only a single sports in the real world or individual athletes in other events do not have.

Such special exemptions for fantasy sports have directly contributed to the sudden growth of the industry in the past few years. < SPAN> Choosing a perfect fantasy team requires a lot of skills. Success in the Fantasy Sports League requires a general manager's business sense, professional scout knowledge and expertise, and head coach strategies. The more bet money increases, the more work of scouting your opponent, considering the best matc h-up, and reviewing the season statistics to predict future performance. All tasks needed to succeed in the Fantasy Sports League mean that in most states, fantasy sports are considered a skill game, and related bets are legal. In 2006, the parliament passed the Unlawfer Internet Gambling Enforcement Act, which handles gambling on the Internet, and has passed the UIgea. In this law, fantasy sports are particularly excluded: Participation in fantasy sports, simulation sports games, or educational contests (when games and contests include teams and teams), fantasy teams and simulation teams belong to amateurs or professional sports organizations. It is not based on the current members and meets the following conditions. All prizes and prizes provided to the winning participants are set in front of the game or contest, are informed by the participants, and the value is determined by the number of participants and the amount paid by the participants. Not. All wins and losses reflect the relative knowledge and skills of the participants, accumulation of statistical results of individuals (athletes in sports events) in multiple or other events in reality. It is mainly determined by. Any winning and losing results are based on a single team in the real world or a combination score, point spread, performance, or b) only a single sports in the real world or individual athletes in other events do not have.

Daily Fantasy Sports: Industry Trends, Legal and Regulatory Issues, and Policy Options

Such special exemptions for fantasy sports have directly contributed to the sudden growth of the industry in the past few years. Choosing a perfect fantasy team requires a lot of skills. Success in the Fantasy Sports League requires a general manager's business sense, professional scout knowledge and expertise, and head coach strategies. The more bet money increases, the more work of scouting your opponent, considering the best matc h-up, and reviewing the season statistics to predict future performance. All tasks needed to succeed in the Fantasy Sports League mean that in most states, fantasy sports are considered a skill game, and related bets are legal.

Contents

• In 2006, the parliament passed the Unlawfer Internet Gambling Enforcement Act, which handles gambling on the Internet, and has passed the UIgea. In this law, fantasy sports are particularly excluded:
• Participation in fantasy sports, simulation sports games, or educational contests (when games and contests include teams and teams), fantasy teams and simulation teams belong to amateurs or professional sports organizations. It is not based on the current members and meets the following conditions.
• All prizes and prizes provided to the winning participants are set in front of the game or contest, are informed by the participants, and the value is determined by the number of participants and the amount paid by the participants. Not.
• All wins and losses reflect the relative knowledge and skills of the participants, accumulation of statistical results of individuals (athletes in sports events) in multiple or other events in reality. It is mainly determined by.
• Any winning and losing results are based on a single team in the real world or a combination score, point spread, performance, or b) only a single sports in the real world or individual athletes in other events do not have.
• Such special exemptions for fantasy sports have directly contributed to the sudden growth of the industry in the past few years.
• When the US Congress passed the UIGea, the Fantasy League was an exemption rules for fantasy sports, with the understanding that the Fantasy League was based on the performance during the season. In recent years, however, a new fantasy league sponsored by Fanduel and StarStreet has appeared, and contests have been held in a short period of one day. According to a recent article on the New York Times, the Professional Sports League seems to be impatient with the newly condensed fantasy Sports League. In addition, the Federal Court has begun to appear in the legal nature of the league only for one day. Industry experts are increasingly struggling with the similarity between a on e-day fantasy league and a traditional accidental game. However, executives on sites such as Fanduel and StarStreet continue to defend their sites with confidence.
• At present, betting on fantasy sports is (almost) legal, even for a fantasy sports league that lasts only one day. However, the future of the fantasy sports gambling industry is not completely finalized, and Vela Wood will continue to monitor the progress and growth of laws that affect the industry.
• The Daily Fantasy Sport (DFS) company operates an online game platform that makes players form fictitious sports teams and enable competing every day or everyday contests, and functions in the law gray zone. I'm doing it. The federal government has not approved or regulated DFS. The state government is mainly responsible for regulating game activities that can be expected to have financial rewards, but the federal law, recently, the 2006 Big Internet Gambling Control Law (Uigea; P. L. 109-347), May limit the ability to supervise DFS. However, the laws of 2006 were enacted in the era when only seasonal fantasy sports were present. It is unknown whether the parliament intended to exclude DFS from state regulations. < SPAN> When the U. S. Congress passed UIGea, the Fantasy League was exempted from fantasy sports, with the understanding that it was based on the performance of the season. In recent years, however, a new fantasy league sponsored by Fanduel and StarStreet has appeared, and contests have been held in a short period of one day. According to a recent article on the New York Times, the Professional Sports League seems to be impatient with the newly condensed fantasy Sports League. In addition, the Federal Court has begun to appear in the legal nature of the league only for one day. Industry experts are increasingly struggling with the similarity between a on e-day fantasy league and a traditional accidental game. However, executives on sites such as Fanduel and StarStreet continue to defend their sites with confidence.
• At present, betting on fantasy sports is (almost) legal, even for a fantasy sports league that lasts only one day. However, the future of the fantasy sports gambling industry is not completely finalized, and Vela Wood will continue to monitor the progress and growth of laws that affect the industry.
• The Daily Fantasy Sport (DFS) company operates an online game platform that makes players form fictitious sports teams and enable competing every day or everyday contests, and functions in the law gray zone. I'm doing it. The federal government has not approved or regulated DFS. The state government is mainly responsible for regulating game activities that can be expected to have financial rewards, but the federal law, recently, the 2006 Big Internet Gambling Control Law (Uigea; P. L. 109-347), May limit the ability to supervise DFS. However, the laws of 2006 were enacted in the era when only seasonal fantasy sports were present. It is unknown whether the parliament intended to exclude DFS from state regulations. When the US Congress passed the UIGea, the Fantasy League was an exemption rules for fantasy sports, with the understanding that the Fantasy League was based on the performance during the season. In recent years, however, a new fantasy league sponsored by Fanduel and StarStreet has appeared, and contests have been held in a short period of one day. According to a recent article on the New York Times, the Professional Sports League seems to be impatient with the newly condensed fantasy Sports League. In addition, the Federal Court has begun to appear in the legal nature of the league only for one day. Industry experts are increasingly struggling with the similarity between a on e-day fantasy league and a traditional accidental game. However, executives on sites such as Fanduel and StarStreet continue to defend the legal nature of their sites with confidence.
• At present, betting on fantasy sports is (almost) legal, even for a fantasy sports league that lasts only one day. However, the future of the fantasy sports gambling industry is not completely finalized, and Vela Wood will continue to monitor the progress and growth of laws that affect the industry.
• The Daily Fantasy Sport (DFS) company operates an online game platform that makes players form fictitious sports teams and enable competing every day or everyday contests, and functions in the law gray zone. I'm doing it. The federal government has not approved or regulated DFS. The state government is mainly responsible for regulating game activities that can be expected to have financial rewards, but the federal law, recently, the 2006 Big Internet Gambling Control Law (Uigea; P. L. 109-347), May limit the ability to supervise DFS. However, the laws of 2006 were enacted in the era when only seasonal fantasy sports were present. It is unknown whether the parliament intended to exclude DFS from state regulations.
• Parliament, multiple states, and law execution agencies are really skilled games (DFS is likely to be legal) or accidental games (DFS can be illegal gambling. Focusing on high gender), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. Court may determine that the Professional Amateur Sports Protection Law (Paspa; p. L. 102-559) prohibits or regulates DFS.
• In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.
• DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly. < SPAN> Congress, multiple states, and legal execution agencies are a really skilled game (DFS is likely to be legal) or an accidental game (DFS is illegal gambling Focusing on being likely to be), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. Court may determine that the Professional Amateur Sports Protection Law (Paspa; p. L. 102-559) prohibits or regulates DFS.
• In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.
• DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly. Parliament, multiple states, and law execution agencies are really skilled games (DFS is likely to be legal) or accidental games (DFS can be illegal gambling. Focusing on high gender), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. Court may determine that the Professional Amateur Sports Protection Law (Paspa; p. L. 102-559) prohibits or regulates DFS.
• In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.
• DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly.
• Regarding DFS, opinions are greatly divided into the conventional gambling industry. Some lan d-based casino owners are afraid of losing customers by DFS games, while others believe that they can be a new source of income that can attract young players. Some of the Indian tribes that operate the casinos have expressed concerns that DFS may decrease, but many tribes have not expressed their opinions. Some states are working to provide DFS sports to increase their interest in horse racing. Several states are considering whether to provide online DFS games.
• Revised history
• February 24, 2016
• Metadata
• Report type CRS report

Figures

• Source EveryCrs Report. com
• Raw metadata JSON

Summary

February 24, 2016 (R44398) Jump to the report of the report

At the beginning

Basic knowledge of DFS

DFS company

Any winning and losing results are based on a single team in the real world or a combination score, point spread, performance, or b) only a single sports in the real world or individual athletes in other events do not have.

Industry position for DFS gaming

Introduction

Legal status and regulatory environment

Federal law that may be applied to DFS

DFS Basics

Illegal Internet Gambling Control Law

Professional and amateur sports protection law

Wire method

Illegal gambling business law

Points to keep in mind about DFS transactions

DFS Companies

State movement

State council

State lawyer

Source EveryCrs Report. com

Player funds

Age restriction

Internal information

Problem gambling

DFS and the Broader Gambling Industry

Location certification

Industry Positions on DFS Gaming

US Council's initiatives and policy consideration

Federal regulation

State regulation

Legal Status and Regulatory Environment

Industry voluntary regulations

Figure 1. Paid Active DFS user

Federal Laws Potentially Applicable to DFS

Figure 2. DFS usage status by state

Unlawful Internet Gambling Enforcement Act

Daily Fantasy Sports (DFS) companies operate online game platforms that enable players to organize fictitious sports teams and compete every day or everyday contests. I'm doing it. The federal government has not approved or regulated DFS. The state government is mainly responsible for regulating gaming activities that can expect financial rewards, but under a series of federal laws, recently, the Internet Gambling Control Law (Uigea; P. L. 109-347) The ability to supervise DFS may be restricted. However, the laws of 2006 were enacted in the era when only seasonal fantasy sports were present. It is unknown whether the parliament intended to exclude DFS from state regulations.

Parliament, multiple states, and law execution agencies are really skilled games (DFS is likely to be legal) or accidental games (DFS can be illegal gambling. Focusing on high gender), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. It may also be determined that the Court is prohibited by the Professional Amateur Sports Protection Law (Paspa; P. L. 102-559) that most state council prohibit or regulate DFS.

In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.

DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly. < SPAN> Congress, multiple states, and legal execution agencies are a really skilled game (DFS is likely to be legal) or an accidental game (DFS is illegal gambling Focusing on being likely to be), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. It may also be determined that the Court is prohibited by the Professional Amateur Sports Protection Law (Paspa; P. L. 102-559) that most state council prohibit or regulate DFS.

In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.

• DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly. Parliament, multiple states, and law execution agencies are really skilled games (DFS is likely to be legal) or accidental games (DFS can be illegal gambling. Focusing on high gender), we are questioning the legal nature of the DFS industry, which has just begun. The legal status of DFS in the state law is to handle financial transactions related to Daily Fantasy Sports, whether the DFS operator will be charged by the Federal Government based on the illegal gambling industry (P. L. 91-452). If so, it will directly affect whether you are liable for violating UIGea. It may also be determined that the Court is prohibited by the Professional Amateur Sports Protection Law (Paspa; P. L. 102-559) that most state council prohibit or regulate DFS.
• In 2015, more than 12 states have examined whether DFS operators will allow them to provide gaming activities to individuals in the country. Nevada has decided to obligate DFS operators to acquire licensing from the state gaming commission. Other states are considering similar approaches, and may include gambling tax paid by casinos. If the state parliament decides to treat DFS as gambling and the court determines that its status is in line with the federal law, DFS is regulated, license, consumer protection, and other states. Is an obligation to. If there are no regulations by state, there is no way to guarantee customer access to funds deposited by DFS operating companies, or to execute minor gamers.
• DFS with pros and cons, but its scale is relatively small. It is estimated that the two major operating companies, Fanduel, DraftKings, and about 2-d o-size DFS companies, pure income (deducted from income) in 2014 (deducted from income). This is only a part of the regulated gambling industry pure income. Nevertheless, various sports teams, organizations, and media companies have invested in the DFS industry, suggesting that if the industry's legal status becomes clear, it will expand rapidly.

Regarding DFS, opinions are greatly divided into the conventional gambling industry. Some lan d-based casino managers are afraid of losing customers by DFS games, while others think that they are potential new income sources that can attract young players. There is. Some of the Indian tribes that operate the casinos have expressed concerns that DFS may decrease, but many tribes have not expressed their opinions. Some states are working to provide DFS sports to increase their interest in horse racing. Several states are considering whether to provide online DFS games.

Daily fantasy sports industry trends, legal regulation issues, policy options

Professional and Amateur Sports Protection Act

Daily Fantasy Sports (DFS) is one form of online games in which players form fictitious teams and how much individual players have played at real sports events, and in the gray zone of the law. It is operated. Although the DFS industry is not regulated by the federal government, some state prosecutor claims that DFS violates the state law or is subject to state regulations. < SPAN> DFS has a large opinion in the conventional gambling industry. Some lan d-based casino managers are afraid of losing customers by DFS games, while others think that they are potential new income sources that can attract young players. There is. Some of the Indian tribes that operate the casinos have expressed concerns that DFS may decrease, but many tribes have not expressed their opinions. Some states are working to provide DFS sports to increase their interest in horse racing. Several states are considering whether to provide online DFS games.

Daily fantasy sports industry trends, legal regulation issues, policy options

Daily Fantasy Sports (DFS) is one form of online games in which players form fictitious teams and how much individual players have played at real sports events, and in the gray zone of the law. It is operated. Although the DFS industry is not regulated by the federal government, some state prosecutor claims that DFS violates the state law or is subject to state regulations. Regarding DFS, opinions are greatly divided into the conventional gambling industry. Some lan d-based casino managers are afraid of losing customers by DFS games, while others think that they are potential new income sources that can attract young players. There is. Some of the Indian tribes that operate the casinos have expressed concerns that DFS may decrease, but many tribes have not expressed their opinions. Some states are working to provide DFS sports to increase their interest in horse racing. Several states are considering whether to provide online DFS games.

Daily fantasy sports industry trends, legal regulation issues, policy options

Daily Fantasy Sports (DFS) is one form of online games in which players form fictitious teams and how much individual players have played at real sports events, and in the gray zone of the law. It is operated. Although the DFS industry is not regulated by the federal government, some state prosecutor claims that DFS violates the state law or is subject to state regulations.

This law makes illegal gambling using the Internet illegal, and banks, credit card companies, and other financial service providers prohibit paying to companies that provide illegal Internet gambling. 1) UIGea defines an illegal Internet gambling as a bet or betting, which is considered illegal based on the state law. 2 UIGea is a game with specific attributes, such as setting the total prize amount, a skil l-based contest, a single team and players' results, for participation in fantasy sports. , Exemption of this ban is stipulated. 3 However, there is no DFS contest at the time of the enactment of UIGea in 2006, and there is a debate whether the DFS currently provided to consumers falls under the legal fantasy sport "exemption". In addition, the Professional Amateur Sports Protection Law (PASPA; P. L. 102-559), which was established in 1992, has banned sports gambling in most states and is subject to various other federal and state gambling laws. The court may judge. This uncertainty has attracted the attention of Congress, and some members have proposed a review of the legal status of the industry.

Fantasy Sports began as an unofficial gambling between friends, composing a fictitious team with active professional baseball players and determining winning or losing with the statistical results of players during the baseball season. Fantas y-based balls have developed into a formal "Roti Sally League" in the 1980s, and have elaborate rules and scoring systems. 4 Daily Fantasy Sports basically extend the concept of fantasy to other sports, compress games during the season into a daily and weekly format, and online between participants without personal connections. It was possible to play. < SPAN> Under this law, illegal gambling using the Internet is illegal, and banks, credit card companies, and other financial service providers do not handle the payment to companies that provide illegal Internet gambling. 1. 1 UIgea defines "illegal Internet gambling" as a bet or betting and receivable via the Internet, which is illegal based on federal law or state law. 2 UIGea is a game with specific attributes, such as setting the total prize amount, a skil l-based contest, a single team and players' results, for participation in fantasy sports. , Exemption of this ban is stipulated. 3 However, there is no DFS contest at the time of the enactment of UIGea in 2006, and there is a debate whether the DFS currently provided to consumers falls under the legal fantasy sport "exemption". In addition, the Professional Amateur Sports Protection Law (PASPA; P. L. 102-559), which was established in 1992, has banned sports gambling in most states and is subject to various other federal and state gambling laws. The court may judge. This uncertainty has attracted the attention of Congress, and some members have proposed a review of the legal status of the industry.

Wire Act

Fantasy Sports began as an unofficial gambling between friends, composing a fictitious team with active professional baseball players and determining winning or losing with the statistical results of players during the baseball season. Fantas y-based balls have developed into a formal "Roti Sally League" in the 1980s, and have elaborate rules and scoring systems. 4 Daily Fantasy Sports basically extend the concept of fantasy to other sports, compress games during the season into a daily and weekly format, and online between participants without personal connections. It was possible to play. This law makes illegal gambling using the Internet illegal, and banks, credit card companies, and other financial service providers prohibit paying to companies that provide illegal Internet gambling. 1) UIGea defines an illegal Internet gambling as a bet or betting, which is considered illegal based on the state law. 2 UIGea is a game with specific attributes, such as setting the total prize amount, a skil l-based contest, a single team and players' results, for participation in fantasy sports. , Exemption of this ban is stipulated. 3 However, there is no DFS contest at the time of the enactment of UIGea in 2006, and there is a debate whether the DFS currently provided to consumers falls under the legal fantasy sport "exemption". In addition, the Professional Amateur Sports Protection Law (PASPA; P. L. 102-559), which was established in 1992, has banned sports gambling in most states and is subject to various other federal and state gambling laws. The court may judge. This uncertainty has attracted the attention of Congress, and some members have proposed a review of the legal status of the industry.

Fantasy Sports began as an unofficial gambling between friends, composing a fictitious team with active professional baseball players and determining winning or losing with the statistical results of players during the baseball season. Fantas y-based balls have developed into a formal "Roti Sally League" in the 1980s, and have elaborate rules and scoring systems. 4 Daily Fantasy Sports basically extend the concept of fantasy to other sports, compress games during the season into a daily and weekly format, and online between participants without personal connections. It was possible to play.

DFS online games provide players a variety of sports choices (baseball, basketball, football, hockey, etc.), performance indicators, on e-o n-one competition, to games with many participants. Players form a fictitious team, how many individuals in the team can play in reality due to statistical values ​​such as the number of pass yards acquired in football, the number of hits in baseball, and the success rate of 3-point field goals in basketball. It is about accumulating points based on how. In addition, each DFS player is given a salary cap and requires that the total of the real salaries of the players belonging to each team is below the specified level. 5

Illegal Gambling Business Act

Depending on the game that the participants choose to participate, the reward for victory varies from a guaranteed prize pool (GPP) to a few dollars to a large amount. 6. DFS companies argue that these remuneration is not lucky or coincidence, but as a result of fantasy sports players. The websites of each company describe the services provided as "contests" and "games", and avoid words such as "gambling" and "bets". As will be described later, the judgment of whether the player's remuneration is obtained as a result of the skill or as a coincidence may have an important meaning in establishing a DFS legal status.

• According to a study published in the Sports Business Journal, "DFS gives a great advantage to skilled players. In the first half of the MLB season in 2015, 91%of DFS players were acquired by only 1. 3%of players. A 70 % of the participants in DFS participants conducted by Eilers Research in the summer of 2015. 8 These studies seem to suggest that the best players are overwhelmingly overwhelming other players because they need some skills to set up a daily fantasy winning lineup. < SPAN> DFS online games provide a variety of sports choices (baseball, basketball, football, hockey, etc.), performance indicators, and games from on e-o n-one to games with many participants. Masu. Players form a fictitious team, how many individuals in the team can play in reality due to statistical values ​​such as the number of pass yards acquired in football, the number of hits in baseball, and the success rate of 3-point field goals in basketball. It is about accumulating points based on how. In addition, each DFS player is given a salary cap, requiring that the total of the real salaries of the players belonging to each team is specified below the specified level. 5
• Depending on the game that the participants choose to participate, the reward for victory varies from a guaranteed prize pool (GPP) to a few dollars to a large amount. 6. DFS companies argue that these remuneration is not lucky or coincidence, but as a result of fantasy sports players. The websites of each company describe the services provided as "contests" and "games", and avoid words such as "gambling" and "bets". As will be described later, the judgment of whether the player's remuneration is obtained as a result of the skill or as a coincidence may have an important meaning in establishing a DFS legal status.
• According to a study published in the Sports Business Journal, "DFS gives a great advantage to skilled players. In the first half of the MLB season in 2015, 91%of DFS players were acquired by only 1. 3%of players. A 70 % of the participants in DFS participants conducted by Eilers Research in the summer of 2015. 8 These studies seem to suggest that the best players are overwhelmingly overwhelming other players because they need some skills to set up a daily fantasy winning lineup. DFS online games provide players a variety of sports choices (baseball, basketball, football, hockey, etc.), performance indicators, on e-o n-one competition, to games with many participants. Players form a fictitious team, how many individuals in the team can play in reality due to statistical values ​​such as the number of pass yards acquired in football, the number of hits in baseball, and the success rate of 3-point field goals in basketball. It is about accumulating points based on how. In addition, each DFS player is given a salary cap and requires that the total of the real salaries of the players belonging to each team is below the specified level. 5

Depending on the game that the participants choose to participate, the reward for victory varies from a guaranteed prize pool (GPP) to a few dollars to a large amount. 6. DFS companies argue that these remuneration is not lucky or coincidence, but as a result of fantasy sports players. The websites of each company describe the services provided as "contests" and "games", and avoid words such as "gambling" and "bets". As will be described later, the judgment of whether the player's remuneration is obtained as a result of the skill or as a coincidence may have an important meaning in establishing a DFS legal status.

Considerations for Financial Institutions Regarding DFS Transactions

According to a study published in the Sports Business Journal, "DFS gives a great advantage to skilled players. In the first half of the MLB season in 2015, 91%of DFS players were acquired by only 1. 3%of players. A 70 % of the participants in DFS participants conducted by Eilers Research in the summer of 2015. 8 These studies seem to suggest that the best players are overwhelmingly overwhelming other players because they need some skills to set up a daily fantasy winning lineup.

One of the attractions of DFS is that participants can play whenever and wherever they want, on a variety of devices. The typical fantasy sports player is younger, more educated, and more affluent than the average casino patron. The typical player is a man in his 30s, very interested in sports, and has been playing in fantasy leagues for several years. 9 Many DFS participants previously played online poker. 10 According to the Fantasy Sports Trade Association (FSTA), the industry's national trade group, DFS players spent an average of $257 on entry fees and league-related materials in 2015. 11 The two major DFS companies, FanDuel, founded in 2009, and DraftKings, launched in 2012, accounted for about 95% of the market's revenue in 2014, according to various estimates. 12 Both companies are privately held. Approximately 20 other companies offer daily fantasy sports. The industry's revenue model is simple. Players pay an entry fee ranging from 25 cents to several thousand dollars to enter a single contest, whether they play against a small group of friends or a huge pool of players competing for a multimillion-dollar prize pool. Operators in the industry typically keep a "rake" (house fee) of 5% to 15% of the total betting pool to cover operational costs and profits. 13 DFS companies claim to distribute the remainder as prize money.

According to gaming industry research firm Eilers Research, the net revenue (entry fees minus prize money) of the DFS industry in the United States in 2014 was $86 million14. The research firm said at the end of 2014 that "none of the major DFS providers are profitable, and none are likely to be cash-flow positive over the next two years." 15 DFS companies do not release detailed financial statements, but it is generally believed that aggressive advertising and marketing activities account for a large portion of their net revenue. 16 As shown in Figure 1, FanDuel and DraftKings claim to have attracted 1. 4 million paid active users in 2014, a significant increase from fewer than 20, 000 paid users in 2011. 17 However, the FSTA claims that the number of DFS players is small compared to the approximately 60 million people it estimates played fantasy sports for a full season in 2015. 18

Figure 1. Number of paid active DFS users

State Action

Source: PrivCo data for FanDuel and DraftKings.

State Legislatures

Note: The total reflects paid active users on Fanduel and Draftkings websites.

Major DFS operating companies are funded by investors who are interested in other sports. FANDUEL investors include Turner Sports (Turner Broadcasting System subsidiaries), cable television distribution company Time Warner Cable, Com Cast, etc., and Draftkings Investors and Marketing Partnership are the Craft Group. (Football team New England Patriots) includes cable TV network Fox sports, major leagues, etc. In some cases, these investors may be more interested in expanding the customer base of sports events and broadcasting rather than the profitability of DFS. The Sports League and the Sports Association are strongly opposed to the legalization of sports betting, but the DFS contests may have more viewers, supporting fantasy sports growth. 20 Cable TV companies, which broadcast 20 sports programs, may be able to enjoy similar benefits because they are broadcasting in expensive and pa y-par views in some cases. According to DFS operating companies, Fanduel, starting Daily Fantasy Sports will increase fans sports content consumption by 40%. twenty one

Other companies are also entering this market. Yahoo, who recently entered the DFS market, offers daily and weekly fantasy sports games on Yahoo Sports daily fantasy sites. 22 CBS, the parent company of CBS TV network, launched its own DFS products in August 2015. The 2 3-cable sports network ESPN has arranged for a DFS platform, but has arranged for DRAFTKINGS to advertise its own programs during the program. Television executives may be particularly interested in the prospect that DFS may not get bored even in score games with disadvantaged DFS because they are more interested in personal performance than the final results. Such ventures have the potential to significantly change the structure of the DFS market.

The DFS is very small compared to the gambling industry, where the gaming businesses of casinos and Indians, races, and states have produced a pure income of nearly $ 70 billion in 2014. Despite the small size of the DFS industry, its rapid growth has questioned the potential impact on the more established gambling industry. Casino and casino hotels have hired about 400, 000 people nationwide in 2014, 25, a major source of income. According to the New York State State University Rockefella Administrative Research Institute, the lottery and taxes for commercial casinos and other kinds of gambling brought $ 27. 3 billion to the state government in 2014. In Nevada 26, gaming tax accounts for about 24 % of the general accounting revenue in FY2014, and Nevada counties are further charged from casinos. Pennsylvania collects 55 cents for every $ 1 on a slot machine. 28 DFS companies have been historically regulated as gambling in most states, but as described in the "legal status and regulatory environment" in this report, there are currently many judicial jurisdictions. It is fighting.

The conventional gambling industry itself has divided opinions in response to DFS. Since DFS players can participate in contests using computers and mobile terminals in places other than casinos, some lan d-based casino operating companies are afraid of DFS operating companies, which are afraid of DFS operating companies. If left untreated, DFS may be gambling that DFS will have the destructive effects of other Interne t-based companies such as Airbnb and Uber to the hotel and taxi industry. There is. However, other gambling companies believe that DFS is a way to introduce traditional gambling options such as slot machines and horse racing to the young generations that generally passive gambling in real stores. There is. The DFS can be a new source of revenue, and we believe that it is a promising way for individuals who do not step into the casino in other ways. 29 < SPAN> DFS is very small compared to the gambling industry, where the gaming businesses of casinos and Indians, races, and states have produced nearly $ 70 billion pure income in 2014. Despite the small size of the DFS industry, its rapid growth has questioned the potential impact on the more established gambling industry. Casino and casino hotels have hired about 400, 000 people nationwide in 2014, 25, a major source of income. According to the New York State State University Rockefella Administrative Research Institute, the lottery and taxes for commercial casinos and other kinds of gambling brought $ 27. 3 billion to the state government in 2014. In Nevada 26, gaming tax accounts for about 24 % of the general accounting revenue in FY2014, and Nevada counties are further charged from casinos. Pennsylvania collects 55 cents for every $ 1 on a slot machine. 28 DFS companies have been historically regulated as gambling in most states, but as described in the "legal status and regulatory environment" in this report, there are currently many judicial jurisdictions. It is fighting.

Raw metadata JSON

The conventional gambling industry itself has divided opinions in response to DFS. Since DFS players can participate in contests using computers and mobile terminals in places other than casinos, some lan d-based casino operating companies are afraid of DFS operating companies, which are afraid of DFS operating companies. If left untreated, DFS may be gambling that other Interne t-based companies such as Airbnb and Uber will have the destructive effects of the hotel and taxi industry, respectively. There is. However, other gambling companies believe that DFS is a way to introduce traditional gambling options such as slot machines and horse racing to the young generations that generally passive gambling in real stores. There is. The DFS can be a new source of revenue, and we believe that it is a promising way for individuals who do not step into the casino in other ways. 29

This division has been repeated in individual segments in the industry. For example, in Indiana, some of the racetrack casinos, a gambling field attached to the racetrack, provide DFS sports contests at the approved racetrack casinos in anticipation of their interest in horse racing. I want to do it. Some lotterys operated by 30 states are considering whether to provide online DFS games, while others are concerned that DFS will be deprived of customers. 31

State Attorneys General

The US Gaming Association (AGA), which represents commercial casinos and tribal casino operators, is in a position to call on DFS activities for "legal clarity and appropriate consumer protection." Some Indian tribes, which operate the 32 casinos, do not generally express their opinions on DFS, but are concerned that they could affect gaming facilities that generated $ 28. 5 billion in 2015. In 33 Arizona, a bill to legalize DFS was rejected in 2014, which is said to have been due to the opposition of the tribe. 34

Gambling is mainly a state law issue, and is reinforced by federal law in a situation where the state law can be abused if there are organs of the state or foreign elements. Few states have enacted laws to explicitly take up fantasy sports. However, the state gambling method often defines "gambling", and may be applied to fantasy sports, depending on the rules and forms of specific contests that are in question. The legal position of fantasy sports in most state laws depends on the skills of the activity mainly depends on the skills of individual participants (likely to be legal), or is mostly dependent (illegal? It is often affected by gambling. 35 In addition, the state law, which seems to recognize "traditional" fantasy sports, may not be so favorable to DFS. < SPAN> This division has been repeated in individual segments in the industry. For example, in Indiana, some of the racetrack casinos, a gambling field attached to the racetrack, provide DFS sports contests at the approved racetrack casinos in anticipation of their interest in horse racing. I want to do it. Some lotterys operated by 30 states are considering whether to provide online DFS games, while others are concerned that DFS will be deprived of customers. 31

The US Gaming Association (AGA), which represents commercial casinos and tribal casino operators, is in a position to call on DFS activities for "legal clarity and appropriate consumer protection." Some Indian tribes, which operate the 32 casinos, do not generally express their opinions on DFS, but are concerned that they could affect gaming facilities that generated $ 28. 5 billion in 2015. In 33 Arizona, a bill to legalize DFS was rejected in 2014, which is said to have been due to the opposition of the tribe. 34

Gambling is mainly a state law issue, and is reinforced by federal law in a situation where the state law can be abused if there are organs of the state or foreign elements. Few states have enacted laws to explicitly take up fantasy sports. However, the state gambling method often defines "gambling", and may be applied to fantasy sports, depending on the rules and forms of specific contests that are in question. The legal position of fantasy sports in most state laws depends on the skills of the activity mainly depends on the skills of individual participants (likely to be legal), or is mostly dependent (illegal? It is often affected by gambling. 35 In addition, the state law, which seems to recognize "traditional" fantasy sports, may not be so favorable to DFS. This division has been repeated in individual segments in the industry. For example, in Indiana, some of the racetrack casinos, a gambling field attached to the racetrack, provide DFS sports contests at the approved racetrack casinos in anticipation of their interest in horse racing. I want to do it. Some lotterys operated by 30 states are considering whether to provide online DFS games, while others are concerned that DFS will be deprived of customers. 31

The US Gaming Association (AGA), which represents commercial casinos and tribal casino operators, is in a position to call on DFS activities for "legal clarity and appropriate consumer protection." Some Indian tribes, which operate the 32 casinos, do not generally express their opinions on DFS, but are concerned that they could affect gaming facilities that generated $ 28. 5 billion in 2015. In 33 Arizona, a bill to legalize DFS was rejected in 2014, which is said to have been due to the opposition of the tribe. 34

Gambling is mainly a state law issue, and is reinforced by federal law in a situation where the state law can be abused if there are organs of the state or foreign elements. Few states have enacted laws to explicitly take up fantasy sports. However, the state gambling method often defines "gambling", and may be applied to fantasy sports, depending on the rules and forms of specific contests that are in question. The legal position of fantasy sports in most state laws depends on the skills of the activity mainly depends on the skills of individual participants (likely to be legal), or is mostly dependent (illegal? It is often affected by gambling. 35 In addition, the state law, which seems to recognize "traditional" fantasy sports, may not be so favorable to DFS.

DFS-Related Consumer Protection Concerns

The lawsuits allege improper or illegal conduct by the companies and raise three different theories of liability: (1) the use of “inside information” to obtain an unfair advantage, (2) violation of state gambling laws, and (3) fraud for misleading promotions. 36 In early February 2016, the U. S. Judicial Panel on Multidistrict Litigation consolidated the lawsuits in the U. S. District Court for the District of Massachusetts, noting that “the lawsuits involve common factual issues” and that “consolidation…will facilitate the convenience of the parties and witnesses and promote the fair and efficient conduct of this litigation.”37 Until these and other lawsuits against DFS operators are resolved and prosecuted or state or federal governments respond with legislative or administrative clarity, questions remain as to what state and federal laws apply to these companies, their customers, and their service providers. DFS may be subject to at least four federal statutes directly related to gambling: (1) the Unlawful Internet Gambling Act, (2) the Professional and Amateur Sports Protection Act, (3) the Wire Transfer Act, and (4) the Unlawful Gambling Operations Act. In addition, financial institutions providing services to DFS operators may be subject to liability under federal money laundering laws if they do not implement adequate internal controls (policies and procedures) to manage and monitor risk.

Player Funds

The Unlawful Internet Gambling Enforcement Act: Uigea was enacted in 2006. 38 This law is trying to deal with this issue by regulating the financial payment flow to companies involved in illegal Internet gambling. Specifically, UIGea is prohibited that people who are "engaged in gambling or betting" will accept small stamps, credit card claims, electronic remittances, and similar payments in relation to illegal Internet gambling. 39 Uigea has clearly excluded the services of financial institutions, communication and Internet service providers that may be used in connection with illegal gambling, based on the definition of the term "betting or gambling work". Nevertheless, if these entities are directly engaged in the operation of the Internet gambling site, they may be responsible under Uigea. 41 Uigea violations are fined up to $ 250, 000 ($ 500, 000 if the defendant is an organization), up to five years of declaration, or both. 42 Furthermore, in the event of a convicted judgment, the court prohibits the defendant from sending, receiving, or inviting information to "gambling or gambling, or gambling or gambling." You can make an order. 43 UIgea and individuals or organizations that violate their enforcement rules may be subject to civil and regulation.

UIGEA has demanded a specific financial payment provider to "identify, block, or prohibit restricted transactions in illegal Internet gambling or other ways." However, Uigea does not change existing federal laws or state law. In fact, UIGea contains a composition rules that explicitly declare that there is no precaution or other effect on other federal laws and state laws related to gambling: "In any rule in this chapter. , U. S. -prohibited federal law, regulatory federal law, or regulations, or states shall not be interpreted as restricted, or expanded. The Internet Gambling Enforcement Act: UIgea) was enacted in 2006 by regulating the financial payments to companies involved in the provision of illegal Internet gambling. Specifically, UIGea is prohibited from the person who "engaged in gambling or betting," in relation to illegal internet gambling, electronic remittance, and similar payments. I am. 39 Uigea has clearly excluded the services of financial institutions, communication and Internet service providers that may be used in connection with illegal gambling, based on the definition of the term "betting or gambling work". Nevertheless, if these entities are directly engaged in the operation of the Internet gambling site, they may be responsible under Uigea. 41 Uigea violations are fined up to $ 250, 000 ($ 500, 000 if the defendant is an organization), up to five years of declaration, or both. 42 Furthermore, in the event of a convicted judgment, the court prohibits the defendant from sending, receiving, or inviting information to "gambling or gambling, or gambling or gambling." You can make an order. 43 UIgea and individuals or organizations that violate their enforcement rules may be subject to civil and regulation.

UIGEA has demanded a specific financial payment provider to "identify, block, or prohibit restricted transactions in illegal Internet gambling or other ways." However, Uigea does not change existing federal laws or state law. In fact, UIGea contains a composition rules that explicitly declare that there is no precaution or other effect on other federal laws and state laws related to gambling: "In any rule in this chapter. , Federation of federal laws, regulatory, or regulating the United States shall not be interpreted as changing, restricting, or expanding the agreement between tribes and state. Act: UIGea) was enacted in 2006 by regulating the financial payments to the company involved in the illegal Internet gambling. Specifically, UIGea is prohibited that people who are "engaged in gambling or betting" will accept small stamps, credit card claims, electronic remittances, and similar payments in relation to illegal Internet gambling. 39 Uigea has clearly excluded the services of financial institutions, communication and Internet service providers that may be used in connection with illegal gambling, based on the definition of the term "betting or gambling work". Nevertheless, if these entities are directly engaged in the operation of the Internet gambling site, they may be responsible under Uigea. 41 Uigea violations are fined up to $ 250, 000 ($ 500, 000 if the defendant is an organization), up to five years of declaration, or both. 42 Furthermore, in the event of a convicted judgment, the court prohibits the defendant from sending, receiving, or inviting information to "gambling or gambling, or gambling or gambling." You can make an order. 43 UIgea and individuals or organizations that violate their enforcement rules may be subject to civil and regulation.

• UIGEA has demanded a specific financial payment provider to "identify, block, or prohibit restricted transactions in illegal Internet gambling or other ways." However, Uigea does not change existing federal laws or state law. In fact, UIGea contains a composition rules that explicitly declare that there is no precaution or other effect on other federal laws and state laws related to gambling: "In any rule in this chapter. , U. S., not interpreted, restricted, or restricted, or extends the agreement between the federal law, regulating, or regulating the state law.
• Furthermore, the definition of Uigea's "illegal Internet gambling" does not specify what kind of gambling act is illegal. As emphasized by the Federal Appeal Court in 2009, "it is not necessary to repeat this law itself does not illegal in any gambling." In other words, UIgea is applied to Internet gambling or bets, which are illegal in the location where the Internet or betting, the received, or the transmitted location
• The illegal Internet gambling means "betting, gambling, receiving, or sending intentionally by at least partially used the Internet. Such a gambling or gambling will be illegal under the federal law or state law applied in the land or tribal land performed by gambling or gambling, or in other ways. 48
• UIgea further, with the term "bet or bet", "with the agreement or understanding that if the person or others get a specific result, or the understanding of receiving a valuable thing, it happens to be left and right by chance. The results of the game are defined as betting or taking danger. 49 However, under the UIGea, the illegal "bet" or "bet" means "participation in fantasy or simulation, sports, and games ... among them ... the fantasy or simulation sports team, amateur Or, what is not based on the current members of the actual team who is a member of a professional sports organization, "does not include the following criteria:
• 1. All prizes and prizes provided to the winning participants are set in front of the game or contest, are informed to the participants, and the value is based on the number of participants and the amount paid by the participants. Not decided.
• 2. All winning results reflect the relative knowledge and skills of the participants, and are mainly determined by the cumulative statistics results of individuals (players in sports events) in multiple or other events. It will be done.
• 3. The winning or losing is (a) score, point spread, performance by combining a single team in the real world or such a team, or (b) only for individual athletes in actual sports or other events There is no decision based on. 50
• One of the basics of fantasy sports exemption is that the observation of factors that affects the statistical knowledge of players, games, and the performance of individual players is not all luck. It is.

The exclusion of this fantasy sports was enacted before the DFS was born. In addition, the statutory exemption measures do not specify how much the accident is involved when determining the victory or loss of the contest. 51 UIGEA's exemptions have not been limited to participation fees, prize money, and contest periods. 52 These three considerations are the basis for legal uncertainty that DFS providers can claim the eligibility of UIGea exemption.

Age Limits

The Federal Professional Amateur Sports Protection Law (PASPA) 53, established in 1992, is a competition game in which the state government participates in amateur or professional athletes, and "or one of those athletes in such games. It is generally prohibited to sponsor, operate, advertise, advertise, license, or permit on multiple performances. 54 In addition, sponsors, operations, advertisements, and advertising of such gambling, "in accordance with the laws or agreements of government agencies," is also prohibited. 55 (PASPA contains a "grandfather" clause that recognizes sports gambling businesses in Nevada, Oregon, Delaware, and Montana, and at the time of the establishment of PASPA, each state acknowledged a specific kind of sports gambling. ) 56

Inside Information

Whether DFS and other types of fantasy sports leagues violate PASPA, especially in consideration of fantasy sports exemption, which Congress included in UIGea 14 years later. In addition, PASPA has a debate that there is a possibility that fantasy sports will explicitly legalize the state law. However, we examined in detail "restrictions on state behavior" against DFS that PASPA could bring:

Problem Gambling

The fact that PASPA prohibits government agencies "sponsors, management, advertising, advertising, licensing, and approval by laws and agreements" is that the state has passed a bill that includes one of the six verbs of PASPA, It suggests that a dispute will occur only when participating in the agreement ... There are few precedents that discuss the limitations of positive state behavior, which are sufficient for the Paspa violation ...

Proof of Location

State actions outside of PASPA's six verbs should be approached with caution.... Although some states have promulgated legislation that explicitly excludes DFS from the definition of gambling/betting/gambling, such actions could be challenged as "sanctioning" or "facilitating" sports betting schemes, especially when states are required to take affirmative action to achieve their goals. Presumably, states could defend their actions as merely clarifying an absence or ambiguity in existing law, rather than an explicit "sanction" that would conflict with PASPA.

Regulation without statutory authorization is a fairly conservative approach that seems much less likely to directly conflict with PASPA, and has already been initiated by the Attorney General. Moreover, since "regulate" is not one of PASPA's verbs, it is arguably permissible on the face of the statute, especially when the regulation itself does not establish licensing or other heavy state oversight schemes.

Congressional Efforts and Policy Considerations

Another way around PASPA's restrictions could be to promulgate legislation that addresses the larger subject of Internet-based electronic gambling. DFS would likely fall under the umbrella of such legislation, but unless the legislation specifically targets DFS, it would be less likely to challenge PASPA head on. 58

To date, no federal or state courts have considered whether DFS operators or state laws regulating DFS conflict with PASPA. However, PASPA provides that legal challenges on this issue may only be brought by the U. S. Attorney General, major professional sports leagues, or the National Collegiate Athletic Association (NCAA). 59 It is unclear whether any of these entities may bring a PASPA lawsuit. Several U. S. professional sports leagues have partnerships with DFS operators and may not want the court to rule against their economic interests regarding the impact of PASPA on DFS. 60 On the other hand, the NCAA has long opposed sports betting involving student athletes, 61 and has reportedly refused to allow DFS advertising during college basketball tournaments. 62 The U. S. Attorney General could also seek an injunction, but one lawyer argued that he may be reluctant to do so, citing the “predominance the federal government has historically given to states in enforcing gambling laws.” 63

The Federal Wire Act of 1961, Section 64 (also known as the Interstate Wire Act or Wire Gambling Act), prohibits gambling business persons from using interstate wire communication facilities to transmit wagers or gambling-related information. Violators of the Wire Act are punished by imprisonment of up to two years and/or a fine of up to twice the gain or loss related to the offense or $250, 000 ($500, 000 for organizations), whichever is greater. 65 Note that the Wire Act targets “persons engaged in gambling or betting,” and some courts have suggested that it may not be used to prosecute simple bettors. 66 Also note that the Wire Act applies regardless of whether gambling is permitted by state law. Federal courts have interpreted the term “wire communication” to include Internet communication. 67

Federal Regulation

Prior to 2011, the United States Justice Criminal Bureau has consistently argued that the wire method will be applied not only to sports gambling but also to other forms of gambling, including no n-sports Internet gambling. The 68 Ministry of Justice's view of the telegraph law seemed to remind the state government to explicitly approve and implement Internet gambling in the jurisdiction. However, at the end of 2011, the Legal Advancement Advancement Advanced by the Justice of Justice said, "The transmission of wired communications, which is not related to" Sports Event or Contest "(Article 184 of the United States Code, Article 184 (A)), is out of the wired method. "It was" overturned the interpretation of the wired method. 70 This decision has expressed the intention to limit the use of the judicial Ministry of Justice in the prosecution of a gambling business person who uses a stat e-wired communication facility to send sports beds or sports gambling related information.

State Regulation

However, the operation of DFS and other types of fantasy or simulation sports games (defined by the exemption of UIGea) corresponds to "Bet or bet on all sports events or contests" in the meaning of wired methods. It is unknown whether to.

Industry Self-Regulation

If DFS operators violate the State Gambling Law and meet other elements of criminal crimes, they may be responsible for criminal liability under the 1970 Global Gambling Business Law (IGBA) 71. IGBA implements all or part of the illegal gambling business, punishes funding, managing, supervision, instructions, and owners. IGBA defines the "illegal gambling business" as the following gambling business.

1. violations of the laws of the state or political lower classification;

2. Implement all or part of the business, fund procurement, managed, supervised, conducted, or have more than five people owned.

3. For more than 30 days, it is substantially operated, or the total income per day is $ 2, 000. < SPAN> Prior to 2011, the US Department of Justice has consistently argued that the wire method will be applied not only to sports gambling but also to other formal gambling, including no n-sports Internet gambling. 。 The 68 Ministry of Justice's view of the telegraph law seemed to remind the state government to explicitly approve and implement Internet gambling in the jurisdiction. However, at the end of 2011, the Legal Advancement Advancement Advanced by the Justice of Justice said, "The transmission of wired communications, which is not related to" Sports Event or Contest "(Article 184 of the United States Code, Article 184 (A)), is out of the wired method. "It was" overturned the interpretation of the wired method. 70 This decision has expressed the intention to limit the use of the judicial Ministry of Justice in the prosecution of a gambling business person who uses a stat e-wired communication facility to send sports beds or sports gambling related information. 3. For more than 30 days, it is substantially operated, or the total income per day is $ 2, 000. < SPAN> Prior to 2011, the US Department of Justice has consistently argued that the wire method will be applied not only to sports gambling but also to other formal gambling, including no n-sports Internet gambling. 。 The 68 Ministry of Justice's view of the telegraph law seemed to remind the state government to explicitly approve and implement Internet gambling in the jurisdiction. However, at the end of 2011, the Legal Advancement Advancement Advanced by the Justice of Justice said, "The transmission of wired communications, which is not related to" Sports Event or Contest "(Article 184 of the United States Code, Article 184 (A)), is out of the wired method. "It was" overturned the interpretation of the wired method. 70 This decision has expressed the intention to limit the use of the judicial Ministry of Justice in the prosecution of a gambling business person who uses a stat e-wired communication facility to send sports beds or sports gambling related information.

If DFS operators violate the State Gambling Law and meet other elements of criminal crimes, they may be responsible for criminal liability under the 1970 Global Gambling Business Law (IGBA) 71. IGBA implements all or part of the illegal gambling business, punishes funding, managing, supervision, instructions, and owners. IGBA defines the "illegal gambling business" as the following gambling business.