Your love for Daily Fantasy Sports may witness an obstacle as the legality of these sports is being questioned. It is true that fantasy sports contribute greatly to the market’s overall revenue after they have been legalised in five states. The total market worth stands at around $3 billion and is still rising. The two companies that majorly dominate the fantasy sports world are FanDuel and DraftKings until now. However, the gambling experts anticipate that Silicon Valley Tech Corporations will soon overpower it.
While talking about the wagers, they have all the possibilities to grow about 40% per year in the future years. In addition to this, the Eilers Research indicates that they may also create a total revenue of $14.4 billion in the market of fantasy sports.
All About Gambling Skills
The Unlawful Internet Gaming Enforcement Act (UIGEA) declared online gaming as illegal in the year 2006. However, it is to be noted that the act also questioned the legality of sports betting and prohibited it. This was done on the basis that professional leagues remarked that such activities ruined the integrity of the games.
In fact, the Vice President of Yahoo, Kenneth Fuchs remarked that fantasy sports are all about skills of the players. He further adds that these sports have a legal identity in around 45 states due to the fact they are mere games of skill. However, there are very less people who second the thoughts of Fuchs.
In the Words of Jim Murren
Murren, the CEO of MGM Resorts mentioned in his comments in April that he is fully able to run a football team, but cannot run a casino, as it is gambling. Since bettors have to use their brains in deciding the right time to trade, who to draft and who to play with, the traditional fantasy sports are counted in games of skill. However, while talking about Daily Fantasy Sports, the legal position stands in question.
The Sports Law professor of Baruch College, Marc Edelman states that the clarification of the law is required. The points and clauses of the law related to the fantasy sports need to be cleared out. Marc is a well-known personality who has written a lot about fantasy sports in the US.
The parent company of ESPN, Disney gave consent to a partnership with DraftKings. The alliance was set up at $500 million, but it was the misfortune of Disney to give up at the last hour. Therefore, the agreement has taken a new shape at the moment. Now DraftKings will be spending around $250 million to advertise on the channels that are in control of ESPN. Not just this, the sports network will offer it exclusive rights by preventing FanDuel to reach the fans. In 2014, DraftKings acquired $304 million in entry fees and the revenue of the company has reached to $622 million today. The movement of Daily Fantasy Sports is still going on and the results are yet to be seen.