Grow Your Business, Not Your Inbox
Will be used in accordance with our Privacy PolicyAs the Attorney General of New York has filed an injunction against major DFS (Daily Fantasy Sports) sites including FanDuel and Draft Kings, a debate is being waged on whether fantasy sports is a game of chance or skill. While I personally believe there is skill involved (not at all biased by my current second place standing in my own season-long NFL Fantasy Football league), I think it's the wrong question. The question should be, “Why isn’t all online gaming legal?”
Why wasn’t DFS involved with this act? Well, the UIGEA actually goes into solid detail, acknowledging that daily fantasy sports do not apply to any one specific player or team, there. Is no betting on the score, point spread or who wins a game. Instead, all winning outcomes reflect.
We should push to make it so.
We live in a country where freedom is supposed to be a cornerstone principle. Where we are allowed to pursue life, liberty and happiness and where we are endowed with certain rights that are ensured and protected by our Constitution. The common-sense premise is that you have rights until they infringe on other people’s rights. The government should be involved in creating rules and laws to ensure that one person’s freedom does not take away from somebody else’s. And that’s it.
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When it comes to DFS or online poker or even to games of pure chance, the reality is that there is no infringing about those that infringes on any third party. Your consequences are your own. If you win, you may find yourself better off. If you lose, you may find the loss worth the entertainment value. You may even become worse off, but that should be your decision to make and your risk to calculate.
In our country, we have the freedom to earn money and to spend it on all kinds of things that others may find inane and wasteful. We can buy overpriced handbags, gym shoes, homes and all kinds of impractical things. But if it’s our money, why should any government -- whether local, state or federal -- have a say in how we spend it or deem what we need protection from? In a country based on freedom, they shouldn’t.
I have heard the argument that gambling losses have negatively impacted lives for people who make bad decisions or become addicted to it. Well, guess what? So have many other things. Overspending on clothing, eating too much and drinking too much are just some of the many ways that people can overindulge and hurt themselves. But that needs to be their choice and their consequence to live with. Moreover, the minority of people who make those extreme poor choices shouldn’t restrict the rights of the majority to eat, drink, make silly purchases or even gamble as they please. Allowing government to use that excuse is actually allowing someone else to interfere with and infringe upon our individual freedoms.
As for calls for significant regulation, I think that an industry like DFS that has grown very quickly and become very valuable can find a way to self-regulate. They are young, so they are still finding their way, but they should do so for their own benefit. The participants in DFS contests and even online poker include very savvy number crunchers, who, if they feel that the platforms that they use are compromised or manipulated, will leave for another choice of platform. Of course, there needs to be some regulation that complies with the normal operating laws of every business, but again, common sense principles should apply.
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It’s a simple fact that people like to have a stake in the things they support. Some people may take $75 and buy an NFL team sweatshirt before their favorite team’s game as a way to be a stakeholder. Someone else may want to take $75 and make a wager on the outcome of the same game to be a stakeholder. It’s not the government’s job or business in a free, secular country to decide which one of those personal expenditures is allowed.
The creators of DFS platforms are disruptive entrepreneurs, leveraging technology to create a new entertainment venue. Their disruption is not that different than Airbnb and Uber that challenge heavy legacy regulation in the hotel and taxi industries, respectively. Our gaming laws are outdated and inconsistent with the rapid change of living in a global, connected world. It’s time for us to take a stand and demand that our right to make and spend our money as we choose not be infringed upon by the people who are supposed to protect our rights to begin with.
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Leaders of an industry that has long claimed it isn’t gambling, are now diving headfirst into New Jersey’s new legal and regulated sports gambling market.
A move that comes as little surprise, considering most of what the top daily fantasy sports (DFS) operators said and did while several US states considered regulating that industry, featured a similar kind of hypocrisy.
New Jersey has battled major professional sports leagues and the NCAA in the courts for the right legalize sports betting since 2011.
On May 14 of this year, it finally got it. In a 6-3 decision, the US Supreme Court declared the Professional and Amateur Sports Protection Act of 1992 (PASPA) unconstitutional. PASPA is the law that banned full-fledged sports betting almost everywhere outside of Nevada. The decision opened the door for all 50 states to legalize sports betting.
The NJ sports betting market
New Jersey lawmakers immediately began working on regulatory legislation to govern the state’s sports betting market. The legislature passed its regulatory sports betting bill on June 7. Gov. Phil Murphy is expected to sign the bill into law any day now, opening up the market.
In the meantime, casinos, racetracks, and sports betting operators that will run the industry have been forming alliances and figuring out how they’re going to do it all.
Monmouth Park racetrack and the soon-to-open Ocean Resort Casino have both teamed with British bookmaker William Hill to open sportsbooks and run online sports betting operations.
Golden Nugget Atlantic City has inked a sports betting deal with Churchill Downs and online sports betting technology company SBTech.
DFS operators get in the mix
And now, the country’s top DFS operators are getting in the mix.
Last week, DFS market leader DraftKings announced it is partnering with Resorts Casino Hotel to open a sportsbook on the property. The two will also launch a sports betting app along with a web-based sports betting platform.
This week,Betfair US announced it has reached a long-term agreement for retail and online and mobile sports betting with Meadowlands Racetrack. It also signed a similar deal with Tioga Downs racetrack and casino in New York, pending the passage of sports betting legislation in that state.
Betfair US is a subsidiary of Paddy Power Betfair, one of the largest publicly traded sports betting companies in the world. The company also recently announced it is combining its US operations with leading DFS company FanDuel.
It also runs the TVG online horse race wagering network in the US.
According to Betfair US CEO Kip Levin, FanDuel will be the company’s primary US brand. Which could mean a FanDuel-branded sportsbook opening at Meadowlands Racetrack before long.
Of course, that would mean two DFS operator-branded sportsbooks in NJ. Plus, one rather big move into the gambling industry for two companies who have always claimed the product they offered isn’t gambling at all.
Is DFS gambling?
Lawmakers in various states across the country began looking at DFS legislation when the popularity of the activity suddenly boomed in 2015.
In an effort to shape the legislation, DFS operators told everyone who would listen that DFS isn’t gambling. They called it a game of skill in an effort to convince lawmakers it required only limited regulation.
Fantasy sports contests involve people competing against one another by drafting a team of pro athletes. The teams earn points based on the statistical performance of the drafted players in real-life sporting events. DFS contests usually take place over a single day. They run like poker tournaments. Participants buy into the contest. The top point-earning teams win the largest pieces of whatever prize pool is created from the buy-ins. Once the operator takes a cut.
Whether it requires certain skills to succeed or not doesn’t change the fact DFS is gambling. However, DraftKings and FanDuel have never be accused of letting the facts get in the way of a good argument.
Billion dollar industry?
The operators said millions were participating in paid-entry fantasy sports contests and putting billions of dollars on the line. Overstatements that quickly changed when legislators started looking at high licensing fees and tax rates.
Facing that threat, DFS operators started crying poor, claiming revenues were much smaller than that and the business was fragile. The story was suddenly that burdensome regulation, high tax rates, and licensing fees would sink them.
They touted DFS as a billion-dollar industry when they were pushing for legalization. Then they begged for mercy when legislators looked to treat it as such.
What Is Dfs Server
DFS operators have every right to jump into what appears to be the much more lucrative sports betting market. It will just be interesting to see if they finally admit they’ve been in gambling from the beginning. Or, will the hypocrisy continue?