Today, in most states in the U.S. In the US, fantasy sports (including DFS) are generally considered a game of skill and are therefore not legally considered to be games of chance (where there is an element of luck and chance). Gambling, of course, is defined as any money-exchange activity that depends primarily on chance. Fantasy sports would not be considered a form of play if they were shown to be more of a skill contest.
For the most part, success in playing fantasy and real sports leaned more toward skill, as baseball and basketball, both real and virtual, were more skill-based compared to hockey and soccer. Along this spectrum, they also included the real counterpart of each fantasy sport, along with other activities, such as coin throwing, based entirely on chance, and cyclocross racing, which rely almost entirely on skill. Overall, I think this provides the base rate of luck versus skill in fantasy football, specifically that the performance in a given league is 80% luck and 20% skill. Hosoi and his colleagues began investigating the roles of skill and chance in fantasy sports several years ago, when FanDuel, the second largest company in the daily fantasy sports industry, approached them.
Based on this metric, that suggests that fantasy football in the all-season version has 20% skill and 80% luck, placing it in the stock exchange stadium. In addition, many will argue that public fantasy football leagues are full of less skilled fantasy players, which may be true, but I would say that most less skilled fantasy players would have been eliminated from this data set (and in fact, if I relaxed the rules of my data set to allow 1 or 2) lost weeks, I see the value of R* fall). The paper's argument was that daily fantasy sports align quite well with professional sports, since daily fantasy football has approximately 55% skill and 45% luck (and therefore should not be considered a game). Other fantasy sports such as baseball, basketball and hockey also appear to be games of skill considerably more than activities based on pure chance, such as coin flipping.
Hosoi says the team's results will ultimately be useful in characterizing fantasy sports, both within and outside the legal system. In recent years, the question has arisen as to whether fantasy sports are a potential form of online gambling. I think the most likely explanation is that fantasy managers compete within specific leagues and it's unlikely that the level of fantastic skill will be evenly distributed across these leagues. As fantasy sports and fantasy football in particular have grown more popular, with advertisements featured on commercial and cable television, some states have questioned the legality of fantasy sports and the companies that allow them.
Come join a group of MIT researchers who are dedicated to calculating the difference between luck and skill in everyday fantasy sports. For a company like FanDuel, it's crucial that fantasy sports games can be classified as skill games. Since fantasy coaches are likely to lean toward leagues where all coaches have a similar skill level (especially when the league persists from year to year), this would tilt the result toward the luck factor.