Is Fantasy Football Just Another Form of Online Gambling?
March 22, 2016
Both companies claim to use specially-designed software that can “identify and interrupt” obsessive and compulsive fantasy team owners/ users. The act banned all wagering on sporting events at the time except in the two states where it was already legal (Delaware and Nevada). For instance, many of the top performing DFS players make no secret of the fact they often use regression analysis, machine learning techniques, point-spread analysis and a host of other numerical techniques to get the edge over their competitors.. The legal sports gambling institutions that operate in Delaware and Nevada often argue that there is a skill component to wagering on outcome of sporting events. Funny enough, this the exact same dialogue that the Fantasy Sports operations use on their client base.
Advocates for the Fantasy Sports industry argue vehemently that DFS is mostly a game of skill with a small element of luck involved. And to be fair, there is a lot of evidence to back up their claims. They promote the idea that with just a little bit of research on injury reports, match-up histories, and the like….players can gain an advantage on the gambling house and make away with oodles of cash.
As mentioned before, according to the the language of the UIGEA, the issue of whether or not fantasy sports games can be considered online gambling or not depends on to what extent the fantasy sport is a game of chance or a game of skill.
Moreover, industry leaders Fan Duel and Draft Kings claim that they actively combat gambling addiction and work actively to prevent unhealthy interaction with their product. In 1992, Congress passed the Professional and Amateur Protection Act. Yet, as the amount of money that is being wagered on fantasy sports mounts and the number of losers increases; many users are left feeling like they’re in a typical casino setting.
compared to Traditional sports betting:
Probably the most distressing argument comes from Fantasy Sports’ comparison to traditional Sports betting (which is illegal in all states except Nevada and Delaware). According to these advocates, the outcome of most if not all fantasy sports tournaments can be determined by the “accumulated statistical results” of sporting events. Back then, Fantasy Sports was a technical niche that was on no one’s radar; therefore the law made no mention of it.
Fast forward to the present day