Is Fantasy Sports a Form of Gambling?

DraftKings and FanDuel claim that since fantasy sports are based on the skill of the competing player, they are not gambling. Learn more about the legal status of fantasy sports from an expert's perspective.

Is Fantasy Sports a Form of Gambling?

DraftKings and FanDuel, the two largest DFS sites, argue that fantasy sports are based on the skill of the competing player, and thus are not gambling. This is because managers must consider a wide range of statistics, facts, and game theory to be competitive. There are many publications that provide information on fantasy sports to help readers stay informed and competitive. A coach must know more than just depth charts and statistics to win; they must also consider injuries, training styles, weather patterns, prospects, home and away statistics and many other facts.

In the United States, 45 states generally agree that if there is more skill than luck in a contest, it is not classified as gambling. A bill in the Florida Legislature seeks to immunize fantasy sports from state gambling laws. Most likely, employers will stay out of the universe of fantasy sports that pay to participate. While they legalize fantasy sports, some of these proposals include strict regulations and licensing requirements for fantasy sports operators.

DFS participants can receive information about sports games, players, expected weather conditions and other factors. As long as employees don't put money or other valuables at risk, their participation in fantasy sports is not a game of chance. Although Arizona has not adopted a ban per se, fantasy sports have generally been identified as illegal gambling. The New York Attorney General recently concluded that daily fantasy sports constitute illegal gambling.

The state has banned virtually all forms of gambling but hasn't specifically focused on fantasy sports. Only two states have passed laws that specifically legalize paid fantasy sports. If in doubt, consult an attorney and research your state's laws before playing fantasy sports for money. The lack of a specific ban in most states does not mean that fantasy sports will not be considered illegal in the future. Nevada recently stated that daily fantasy sports are games of chance and are subject to state gambling regulations.

Célia Leaverton
Célia Leaverton

Incurable burrito practitioner. Subtly charming tv scholar. Award-winning beer lover. Freelance music practitioner. Typical food scholar.

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