Out of Bounds?: A Legal Analysis of Pay-to-Play Daily Fantasy Sports
36 Pages Posted: 25 Apr 2015
Date Written: March 17, 2014
Abstract
Daily fantasy sports are one of the fastest growing, most popular aspects of sports today. Due to its popularity, daily fantasy sports are growing much faster than the laws in place to monitor them. Although many articles have been written that focus on the legality of traditional fantasy sports leagues, daily leagues have been relatively unexplored. I hope to provide a framework for analyzing how daily fantasy sports will be treated under current state and federal law. Part I of this Article provides a brief history of the growth and popularity of daily fantasy sports. Part II begins to analyze the legal framework regulating fantasy sports on a federal level. Part III focuses on how state laws approach fantasy sports. Part IV contains the skill versus chance analysis that is central to the ongoing debate and is what the legality of daily fantasy sports hinges on in many states. Part V explores the public policy arguments surrounding daily fantasy sports.
This Article argues that daily pay-to-play fantasy sports sites are legal under current federal laws, and are legal in the majority of states as a game of skill. This Article also argues that many of the public policy concerns about daily fantasy sports are inapplicable and focus more on the consequences of casino gambling. Under the existing laws and regulations, daily pay-to-play fantasy sports are legal and should withstand any coming legal challenges.
Keywords: sports, sports law, fantasy sports, daily fantasy sports, gambling law, gaming law, pay-to-play, game of skill, game of chance
JEL Classification: K10, K12, K14, K20, K23, J18, J20, L82, L83, L86, L89
Suggested Citation: Suggested Citation