SPORTS BETTING AND FANTASY FOOTBALL
PASPA for subsequent litigants. Many states watched in anticipation and waited for the verdict.
They should realize that the New Jersey decision
delivered the potential ‘knock-out’ blow to PASPA. Although these remaining 49 states now have unrecognized power to activate other court battles, they should understand that across-the-board litigation requires the ‘stomach’ and tenacity to continue. However, one favorable circuit court ruling would immediately open the door to sports gambling – at least for the victorious state – and accelerate Congressional action.”
Believing the reward far outweighs any risks,
Wallach sees no downside when comparing the “pros” and “cons” of such action. He states, “For a seven- figure legal fee, the potential positive economic return on investment is in the billions. The leagues could also get a financial piece of the handle, which should appeal to them.”
SUPPORT Historically, the 100-plus professional league
teams, the National Collegiate Athletic Association (NCAA) and Department of Justice (DOJ) have long opposed legalized sports betting. However, recognizing that evolving conditions could benefit them, the National Hockey League (NHL) will launch a Las Vegas team for the 2017-2018 season and the NFL’s Oakland Raiders football team is considering relocating to Las Vegas.
AGA’s biggest push for its 2017 platform will include several sports betting seminars during this year’s G2E. Freeman will discuss the issue with former National Basketball Association (NBA) Commissioner David Stern, a longtime opponent turned supporter. Stern feared legal sports betting could compromise and overshadow the NBA’s relationships with fans.
Current NBA Commissioner Adam Silver has
supported federally-regulated legalized sports betting for years. In a 2014 New York Times editorial, Silver acknowledged that current social acceptance of gaming links with sports betting.
He wrote, “Congress should adopt a federal
framework that allows states to authorize betting on professional sports, subject to strict regulatory requirements and technological safeguards.”
This presidential election year has kept federal
sports betting legislation from the forefront. However, Freeman believes it will be on the next president’s desk for signing, regardless of who wins.
As sports betting legislation stalls, Daily Fantasy
Sports (DFS) issues have taken center stage. Legal traditional fantasy sports games allows competing
28 SEPTEMBER 2016 DFS uses a short-term model to expedite the daily
team building, involving a form of paid competition that rewards a share of a pre-determine fund. Many legal experts claim that DFS mimics gambling over analysis. PASPA explicitly prohibits a person from promoting or advertising any betting on “one or more competitive games…or on one or more performances of such athletes in such games.”
Last December, state and federal authorities
investigated DFS giant DraftKings for allegations that insiders used player information to earn money on competitors’ sites. A related FBI inquiry investigated DFS companies’ overall business practices. FanDuel is the other predominant DFS operator.
DAILY FANTASY STILL IN FLUX
Ironically, the NBA and the NFL have equity in the DFS industry. Prominent NFL owners – New England Patriots‘ Robert Kraft and Dallas Cowboys‘ Jerry Jones – have invested in DraftKings.
Massive advertising last football season attracted additional governmental scrutiny. With recommendations from Nevada’s Attorney General and gaming regulators in October 2015, Governor Brian Sandoval mandated that DFS companies must be state licensed to continue operating. Critics accused him of attempting to eliminate competition.
Freeman defended Sandoval in a March 7, 2016 Las
Vegas Review Journal op-ed. He claimed that Sandoval was really advocating for the industry, writing “…in actuality, Nevada provided legal clarity and a roadmap for daily fantasy sports’ continued success…”
Dozens of states have since scrambled to establish
parameters and a patchwork of legislation or prohibitions has emerged and Lipparelli says the industry has established minimal regulations necessary for consumer protection. The UIGEA exempts fantasy sports programs that meet certain requirements,
“The quality of legislation continues to improve and move to a better place. Massachusetts, New York, Tennessee and Virginia offer a framework for other states to follow. It is more likely that additional states will adopt this type of language if all can agree on the cash segregation, tax issues, age controls and standardized registrations,” says Lipparelli.
Sports betting and Daily Fantasy Sports is slowly
evolving towards legal status and widespread availability. Shrinking opposition, clear legislative language and a concerted industry effort could have a very favorable result.
players to construct a “dream team” of professional athletes over a whole season. They use actual statistical data of athletes‘ performances.
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