Photo: Zia Morales/Bloomberg Daily Fantasy Sports Decisions Risk Clouding Legal Landscape
The New York Appellate Division and the Illinois Supreme Court recently issued conflicting opinions on whether daily fantasy sports are considered gambling. This article examines these two decisions and their impact on the legal landscape of paid contests involving chance and skill.
August 04, 2020 at 10:03 AM
9 minute read
The daily fantasy sports (DFS) industry is immensely popular in the United States, with millions of registered users and an estimated annual revenue in excess of $300 million. See Dustin Gouker, New Official Data: Daily Fantasy Sports Generated $335 Million In Revenue In a Year, Legal Sports Report, https://www.legalsportsreport.com/21627/ny-dfs/ (last updated June 27, 2018). However, there have been several legal challenges to DFS at the federal and state levels, particularly concerning whether DFS contests should be considered a form of gambling. See, e.g., In re: Daily Fantasy Sports Litig., No. 1:16-md-02677 (D. Mass. filed Feb. 4, 2016). Some state attorneys general have opined that DFS contests are gambling, and some states such as Nevada have determined that DFS operators must be licensed under state gambling regulations. Many other states have expressly concluded that DFS is not considered gambling, however.
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