Nevada bans FanDuel, DraftKings, other fantasy sports sites for gambling

Were told you can also play fantasy games for sports other than football, but that just seems silly.

Weekly fantasy sites are more or less the same as season-long fantasy leagues. Additionally, players may be owned by multiple teams, with rosters being capped by a set salary cap. Nevada has made no bones about it either, being the latest state to join the crusade, saying that it is gambling within their state without the proper licenses (read: payoffs).

The timing is a bit suspicious as well, with concerns about a form of insider trading dogging DraftKings and FanDuel for the past few weeks. The top player or players in each group will receive a payout commensurate with their ranking within the contest they joined, with millions of dollars at stake on a weekly basis.

This is where the companies have run into opposition. Normally, each player can only be acquired by one team at a time, with an emphasis on scoring points based on the the cumulative performance of your players each week as compared to your opponents. Using the app version can already lock you out while in states where they arent allowed, even if you are just travelling through–trust us, we have firsthand experience on that. If something is occurring without regulation, it means they arent getting their palms greased. Entry fees can start out as low as 25 cents, but can get up into the thousands of dollars for the big time players. More desirable players generally cost more than lesser performing players. Of course, this argument puts them dangerously close to acknowledging that the game has a great deal of luck involved, bringing up questions of gambling. Players get points based on yardage, receptions (unless you do non-PPR, in which case youre just wrong), touchdowns, fields goals and other statistical parameters. Players gain points based on constructed rosters and get points based on performance, with a few key differences. A few players who worked for each site won substantial amounts of money on the other–one winner raking in a cool $350,000–drawing clouds of suspicion that they were using insider information to have an advantage over the general public. In the past, people have generally argued that gambling brings undesirable elements and crime to certain areas, using that reasoning to zone them out in all but a few places in the United States. In a traditional setup, players would draft players at the beginning of the season and build a team around it throughout the season, modifying their rosters as desired. Nevada is banning the sites not for supposed unfair business practices, however, but because they consider the contests gambling rather than skill-based competitions.

For those not in the know, weekly fantasy sites such as DraftKings and FanDuel use a modified version of traditional fantasy football leagues. Montana, Iowa, Louisiana, Arizona, and Washington are the other five. The fact that four of the six rank are in the top ten nationwide for gambling revenue is probably just a coincidence.

So beware if you live in those six states and want to engage in such games. Many claim that the sites run afoul of anti-gambling laws, and several states do not allow them to operate within their borders. Rather than playing in a small league of a dozen or so people, (give or take depending on how many friends you have), players join leagues that may contain thousands of people. Additionally, many are making the argument that they couldnt have cheated too much, as knowing the future of who would score is impossible. The move came on October 15, in the midst of backlash against the sites for what many deem a form of insider trading. The companies have conducted their own internal investigations, claiming this is not the case, but also setting new rules in place disallowing their employees from participating in the games in the future. After all, if they dont protect the wealthy casino owners from such nefarious activities as light gaming, who will?

. But when the gaming is done online, that argument is much more difficult to make, and only two arguments are left: you dont like people to be free to gamble or you arent getting a slice of the pie yourself.

With that much money changing hands, you can be sure that both the federal and state governments would start to take notice, primarily for the latter. You can also be subject to legal trouble if you are caught spending your money on your preferred form of entertainment if it hasnt been preapproved by The State. The state of Nevada has joined a growing list of states who wont allow weekly fantasy football sites to operate within their borders. Games of chance have long drawn the ire of people who dont think adults should be able to make their own decisions with their own money. Treading that fine line between whether its a skill-based game that can be cheated vs a luck-based game that could be considered illegal gambling has proven to be a tightrope walk.

Nevada becomes the sixth state inclined to believe the latter, not surprisingly as it is the gambling capital of the nation, thus the state with the most to lose, if losing something they never had is a possibility

Posted January 12th, 2016 in Uncategorized.

Leave a response:

You must be logged in to post a comment.