Chances are if you’ve watched a sporting event recently, you’ve seen a commercial for DraftKings or FanDuel. Fantasy sports is hardly new to the sporting world but 2014 saw a drastic increase in what’s being described as “daily fantasy games” and the popularity and winnings are staggering.
For instance, during the 2014 NFL football season DraftKings awarded a million dollar prize every single week and FanDuel anticipates earning $100 million in revenue for 2014. Not only has the stockholders of the DraftKings and FanDuel reaping the benefits from online consumers but they’ve excelled with securing significant sponsorships. The NBA in particular recently signed a partnership of 4 years with FanDuel. Long gone are the days of rotisserie baseball from the 1980’s.
So if online sports gambling is illegal in virtually every state in the US, how are people legally earning an enormous amount of money on fantasy sports? It was actually because of a perceived loophole in a law that was passed in 2006 that banned online poker. This law also upheld the ban on sports gambling but didn’t address fantasy sports.
So here are my thoughts: Are daily fantasy sports gambling or is there actually skill involved? To what degree is luck involved?
Should these fantasy games be deemed illegal by the government or should they be allowed to exist?
Kevin has shared an interesting link concerning the rise of Fantasy Sports website here