Wager Mage
Wager Mage
Photo: Kindel Media
DraftKings and FanDuel, the two largest DFS sites, both state that, because fantasy sports rely on the skill of the player competing, they are not games of chance and general state gambling laws do not apply to them.
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Read More »States still maintain the most control over determining which activities constitute illegal gambling. Most states do not address fantasy sports in statute. In fact, only two states do. Maryland enacted legislation in 2012 to explicitly exempt fantasy sports competitions from the state’s gaming laws. Montana legalized fantasy sports leagues in 2007, but explicitly prohibited people from “conduct[ing] [I]nternet or telephone wagering on fantasy sports leagues.” Without a statute to clarify the law, the other states and territories have relied on court precedent, attorneys general opinions, public statements, or other laws to determine or predict the legality of fantasy sports in their jurisdictions. The most common reason to consider fantasy sports a legal activity is the “dominant element test,” which accepts that there is a percentage of chance in many legal activities, such as stock trading. However, if the amount of skill outweighs the amount of chance needed to be successful, the activity does not constitute gambling. DraftKings and FanDuel, the two largest DFS sites, both state that, because fantasy sports rely on the skill of the player competing, they are not games of chance and general state gambling laws do not apply to them. A few jurisdictions have left fantasy sports’ legal status undecided due to a combination of unfavorable court opinions, a more stringent definition of a “game of chance” or public assertions by the state about fantasy sports’ legality. Four states—Arizona, Iowa, Louisiana and Washington—have so much uncertainty that most fantasy sites prohibit players in those states from accessing their sites. In turn, legislators in all four states have worked to clarify their laws to allow for fantasy play. Lawmakers in Montana have also introduced legislation to remove the statutory provisions that prohibit online fantasy play. So far, none of the bills has passed. States also have introduced other legislation around fantasy gaming. Indiana, Massachusetts and Pennsylvania introduced legislation this term to allow their casinos or lottery to offer daily fantasy games, and Texas introduced legislation that would require sports betting sites, including fantasy sports sites, to obtain a license before offering sports betting in the state.
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