Daily fantasy sports is under fire. Two of the industry’s leading websites, FanDuel and DraftKings, are under the microscope for fraud similar to insider trading, and Colson Hick Eidson has even filed lawsuits against these companies, but a new problem could hurt the daily fantasy sports industry far more than any lawsuit…
Are Daily Fantasy Sports Considered ‘Gambling’?
The state of Nevada seems to believe that daily fantasy sports leagues are a type of gambling. The Nevada Gaming Control Board declared in October that sites like FanDuel and DraftKings constitute gambling sites and must be licensed to run in Nevada. Refusing to acknowledge such a distinction, at least eight daily fantasy sites have pulled out of the state, but Nevada isn’t the only place lashing out against these sites.
Where Is Daily Fantasy Sports Banned?
Arizona, Iowa, Louisiana, Montana and Washington have already banned for-money daily fantasy sports leagues, and if the trend continues, these websites could be facing federal consequences. FBI and Department of Justice investigators are trying to determine if these sports leagues are a type of gambling, and if they do, then these sites could be in violation of several state laws and the Unlawful Internet Gambling Enforcement Act of 2006.
How Are Daily Fantasy Sports Sites Fighting These Allegations?
To fight this problem, the Fantasy Sports Trade Association announced that it will create a regulating body call the Fantasy Sports Control Agency. This new agency will regulate sites like DraftKings and FanDuels, and they hope it will take pressure off the issue of whether or not fantasy sports are gambling games. The NFL and MLB have already thrown their lot in with the fantasy sports sites and stand to lose a lot of money if the situation does not turn out well.
Colson Hicks Eidson—Injury Attorneys