(NWT) Online Fantasy Football Gambling

[ONW]

"The question doesn’t really apply to leagues with friends or coworkers, similar to how there is no real concern around friendly bets on games of poker or golf. Rather, it pertains to the new trend of daily betting sites like FanDuel, Fanball and DraftDay that host millions of dollars in transactions between players who organize and bet on new lineups each week.

So to raise the question once more, should betting on fantasy football be legal? To be honest, I’m not totally sure.

We should start by clarifying that it is currently legal to bet on fantasy sports. The Unlawful Internet Gambling and Enforcement Act of 2006 (UIGEA), which establishes the legal guidelines for online gambling, carves out a safe haven for any fantasy or simulation sports game that:

“has an outcome that reflects the relative knowledge of the participants, or their skill at physical reaction or physical manipulation (but not chance), and, in the case of a fantasy or simulation sports game, has an outcome that is determined predominantly by accumulated statistical results of sporting events…

In other words, fantasy sports are considered games of skill – not chance – if they can be won by successfully utilizing superior knowledge of the players involved. The Act adds that the game in question cannot have a prize that is determined by the number of players or amounts paid (think betting odds on game picks), but rather is established in advance of the game’s start."


How is this any different than online poker?

 

[WRS]

It's pretty complicated...I've read a bunch of legal opinions on it for our work with FanDuel and DraftKings. Will try to revisit this thread later if I have some more time.

 

[ONW]

Thanks WRS

 

[WRS]

The really basic gist of the difference between card games and fantasy sports is the "predominance test" when measuring the existence of "chance" in the respective games to determine whether the outcome of various contestants is largely the result of skill or chance. In some states a "materiality" test is also used to declare certain games unlawful if there is a material element of chance in the game. So the definition and ruling can vary from state to state. Overall, it's been determined that in fantasy sports the outcome is primarily controlled by the skill of the player (hence referring to them as games of skill) whereas card games incorporate an element of skill but primarily are determined by the element of chance.

When applied to fantasy football the idea is that research on the quality of players, historical performance, injuries and difficulty of schedule are the most significant factors in who wins a contest. While there is certainly chance involved in future deviations it has been ruled that chance is not the predominant factor in the outcome. It is still prohibited in states that follow the materiality test I believe so sites like FanDuel prohibit users from certain states.

Note: I'm not a lawyer, this is just my basic understanding from research on the industry and reading legal opinions.

 

[Pilchard]

Love USA, but we are so backwards sometimes. Betting on whether Calvin Johnson scores the most fantasy points is OK, but betting whether the Lions score more points than the Bears is not? Essentially every civilized country allows gambling. Instead of allowing it and regulating it, we allow certain types of gambling where the odds are staked massively in the house's favor (lottery, keno, horse racing), and leave the types of gambling with the mass appeal (and the best prospects for turning a profit) to organized crime and to those in other countries to profit off our own citizenry.

 

[PhDeac]

I definitely see your point. I think the counter is that fantasy football is less ripe for corruption. Diversified risk. Harder for criminals to key on one outcome. Harder for corrupt officials to influence.

 

[ONW]

I definitely see your point. I think the counter is that fantasy football is less ripe for corruption. Diversified risk. Harder for criminals to key on one outcome. Harder for corrupt officials to influence.

Excellent point. Online poker is based on algorithms that could be manipulated on the web, but I know when Manning throws for 5 touchdowns, 300 yards, and how many points that is worth. Billy Ray in Australia catching a flush on the river isn't real easy to verify.

 

[PhDeac]

Exactly. And sure Peyton Manning could be in line with organized crime and shave points to guarantee the Broncos don't cover (last week would have been an easy chance for this). That would be huge for betting on the game. It would barely move the needle for fantasy football except perhaps some insiders knowing not to pick up Manning that week.

 

[ONW]

With all that in mind, I'm still surprised it is legal and has a very busy marketing campaign.

 

[PhDeac]

I'm surprised it took this long to happen. Wouldn't be surprised if it started for baseball and maybe basketball. Baseball typically has enough games everyday to fill out a daily league.

 

[ONW]

I'm surprised it took this long to happen. Wouldn't be surprised if it started for baseball and maybe basketball. Baseball typically has enough games everyday to fill out a daily league.

It's gambling crack. You play for a day or not. No commitment for an entire season. Brilliant.