There are only a few exceptions to the illegality of sports betting in the United States. Namely, it is an accepted and a legal form of betting in Nevada. There has also been a push to legalize sports betting in New Jersey though this was recently shot down in court. That being said, sports’ gambling still occurs on a regular basis, it just occurs illegally. However, there is a new kind of sports betting that has started to catch wind in the United States, with almost every state joining in on the game play. Unlike sports betting, this type of wagering works entirely in the open and is considered perfectly legal. This particular type of sports betting is called fantasy sports and is an industry on a massive upswing.
The Lowdown on Fantasy Sports Sites
Just like casinos, fantasy sports websites offer users the chance to win big rewards. Although there are numerous variations of game play to try out, the basic idea of fantasy sports sites is that users draft players to a virtual team. The user who picks the best draft picks will win real cash. In essence, users play as general managers in fantasy sports leagues, whether they are season-long or daily drafts. Most websites require a bet that ranges from 25 cents to thousands of dollars.
Why is Fantasy Sports Betting Legal?
Some argue that fantasy sports is similar to sports betting and other types of gambling in that it is easy to play and heavily dependent on luck. So why is it that wagering real money on fantasy sports is legal when traditional sports betting is not? Fantasy sports betting is, in fact, legal because such sports leagues as the NBA and the NFL lobbied Congress for the passing of the Professional and Amateur Sports Protection Act of 1992. This act declared sports betting illegal in all but a few states such as Delaware and Nevada. However, the law explicitly excluded fantasy sports.
Is Fantasy Sports Betting Even Real Gambling?
Fantasy sports websites point out that players are not exactly gambling when they are placing bets in the sense of betting on an entirely random event, like spinning a roulette wheel or flipping a card. Rather, they are playing in contests that require their knowledge, attention to detail and skill. This is why US based fantasy sports companies are considered in the genre of skill game companies, and all of their contests are 100 percent legally operated under the United States law. Additionally, the United States government, as well as 45 out of the 50 states, deems fantasy sports a skill game.
What Makes Fantasy Sports Legal
To answer this question, we must look at The Unlawful Internet Enforcement Gambling Act. The UIGEA was passed by Congress in 2006 and killed such online gambling sites as FullTilt and PokerStars. It also strengthened and reinforced the illegality of online sports betting and casino gambling in the US. However, the bill also includes several exemptions for both fantasy sports and horse racing. This carve-out was a sort of footnote, and so the legality of fantasy sports was not debated thoroughly at the time as it was considered an important part of the United States betting scene.
Conclusion
The UIGEA states that the definition of an illegal bet does not include participating in any simulation or fantasy sports game or contest or educational game in which the team is not based on membership of a real team. Some industry experts believe that fantasy sports betting should not be deemed legal, while sports betting is considered an illegal counterpart. However, many of these opponents are in the sports betting arena, such as Joe Asher, the CEO of William Hill sports book, who declared that drawing a line between sports betting and fantasy sports was not just. Either way, as of now online fantasy sports betting is 100 percent legal and so you can safely play it without worrying about persecution.