Daily Fantasy Sports

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Daily Fantasy Sports

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Daily Fantasy Sports

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In August , a class action lawsuit was filed against DraftKings, alleging that it engaged in false advertising in regards to a promotion in which the service claimed it would double a new user's first deposit.

The suit alleged that DraftKings would only credit the deposit bonus to a player's account if they fulfill certain monetary and participation requirements within four months, causing them to "incur additional and substantial monetary obligations", rather than instantly receive the bonus as implied by advertising.

In the wake of the scandal, multiple class-action lawsuits were filed against both DraftKings and FanDuel, with suits alleging charges such as fraud, racketeering , negligence, and false advertising, arguing that the employees' use of inside information had made the games unfair.

One of the lawsuits were filed by a resident of New Orleans, despite paid fantasy games being illegal in the state. FanDuel objected to the lawsuit, arguing that its use of his likeness fell within existing case law surrounding the use of player names and statistics in fantasy sports games.

In December , Canadian media company TheScore launched QuickDraft, a daily fantasy game targeted at both Canada and the United States, based on the intellectual property of its acquisition of Swoopt.

In contrast to other DFS services and in an effort to work around the increased scrutiny and uncertain legality of paid games, the service is being positioned as a free-to-play service with smaller cash prizes, a more "casual" atmosphere with fewer " sharks ", and the possibility of being advertising-funded in the future.

DraftKings and FanDuel attempted to merge in , but the deal was shelved after the U. Federal Trade Commission threatened to block it over concerns that the combined company would have a monopoly on paid DFS.

In May , the Professional and Amateur Sports Protection Act of —which outlawed state legalization of sports betting in most U. National Collegiate Athletic Association.

The following month, Delaware became the first state to create new legislation to allow sports betting, [48] followed shortly by New Jersey.

Analysts predicted that the duopoly of DraftKings and FanDuel would make moves to capitalize on the decision, including leveraging their regulatory expertise and influence to lobby for state legalization of sports betting, and incorporating betting features into their platforms to take advantage of their existing market positions and brand recognition.

The aggressive marketing tactics used by daily fantasy services have also affected the growth of the industry.

DraftKings and FanDuel also became known for their use of direct response advertising on television, especially during sports telecasts.

The increased legal scrutiny surrounding DFS resulted in providers spending less on marketing in order to focus more on legal costs.

There are conflicting arguments over whether paid daily fantasy sports games constitute gambling , due to its mixture of chance -based and skill -based elements.

In an " IAmA " thread on Reddit , DraftKings CEO Jason Robins described the service as being "almost identical to a casino ", described the concept of DFS as a cross between fantasy sports and online poker , and repeatedly referred to the service using gambling-oriented terms such as "wager" and "betting".

Viacom, Inc. Cavanaugh of the U. District Court of New Jersey distinguished an "entry fee" in a paid fantasy sports competition as being a fee required to participate rather than a "wager", because they are "paid unconditionally", and because the prizes in such games were "guaranteed" and determined in advance.

Bloomberg Businessweek acknowledged that daily fantasy contests are often won by a minority of skilled professional players, or " sharks ", who employ "elaborate statistical modeling and automated tools that can manage hundreds of entries at once and identify the weakest opponents".

A DFS player interviewed by Bloomberg argued that "no matter how much somebody knows about sports, if you put an established player up against a new player, that established player's probably going to have a 75 percent chance of winning—at least.

FanDuel CEO Nigel Eccles disputed the accuracy of the study, arguing that its daily fantasy baseball contests do not have as many participants as those it runs for football.

Writing for The New York Times Magazine , Jay Caspian Kang argued that DFS games themselves were "not inherently crooked", explaining that "most of the benefits praised by its enthusiasts — the ease of play, the camaraderie among fans, the challenge of solving what amounts to a math puzzle — are real.

It does take skill to parse game film, diligently follow the news and interpret the thousands of bits of sports information that are generated each night.

If a problem gambler at the poker rooms I frequent in New York City were to hire a programmer and flood the D.

In response to these concerns, DFS services implemented changes to improve the fairness and transparency of their contests, including entry limits, banning off-site scripts, identifying veteran-level players, allowing users to block players they do not wish to compete against, and adding beginner-level contests intended for new users.

Each state applies varying standards in regards to determining whether a game is one of skill, or of chance; in most states, this determination is based on whether the skill-based elements of the game are predominant over those of chance, and whether these chance-based elements have more than an incidental effect on the outcome of the game dominant factor test , material degree.

He determined that DFS would likely be classified as a game of chance under Canadian law, going on to say in an interview that under the Criminal Code of Canada , games that mix chance- and skill-based elements are considered games of chance.

However, Canadian authorities have not yet targeted DFS services; historically, the government has only targeted illegal gambling operations that have a presence within the country.

The UIGEA has frequently been cited as having exempted daily fantasy games from being considered gambling, as the law does not consider an online contest with pre-determined prizes, and an outcome based on skill that is "determined predominantly by accumulated statistical results of sporting events, including any non-participant's individual performances in such sporting events", to be unlawful wagering.

The act itself does not define unlawful internet wagering, and expressly refrains from altering the legality of any underlying conduct other than funds transfers, meaning that state law remains binding.

Daily fantasy services have historically blocked residents of Arizona, Iowa, Louisiana, Montana and Washington from participating in paid games, under a presumption that DFS is illegal in these states due to the strictness of their gambling laws.

Louisiana attempted to pass a law that would exempt fantasy sports from its anti-online gambling laws, but the bill was defeated as the result of lobbying by both the Louisiana Family Forum which showed concerns that players could develop an addiction to daily fantasy games , and the Louisiana Video Gaming Association which felt that DFS would cannibalize the legal video poker industry, and needed to be highly regulated.

On October 15, , the Nevada Gaming Control Board published a memorandum ruling that daily fantasy sports games were a form of sports wagering, and that DFS services must cease serving customers in the state of Nevada until they obtain a sports pool license.

On January 17, , Attorney General of Texas Ken Paxton issued an opinion, stating that "it is prohibited gambling in Texas if you bet on the performance of a participant in a sporting event and the house takes a cut.

He explained that "the technology may have changed, but the vice has not. He argued that while picking players for a fantasy team is an activity of skill, player performance can vary, and Alabama law dictates that it is illegal to risk something of value on any game with an element of chance.

In September , the state of Massachusetts tabled a bill exploring the possibility of allowing the Massachusetts Lottery to run online, skill-based games, such as daily fantasy sports.

On March 7, , the state of Virginia passed legislation regulating "fantasy contests", defined as skill-based games with cash prizes that are based on the "accumulated statistical results of the performance of individuals"; the law makes no reference to sports or DFS.

The law was criticized for being broadly-worded, with critics believing that it could feasibly apply to season-length games or any similar activities, and that the required licensing fee adds a financial barrier for doing business in the state.

On May 10, , it was reported that the U. In August , New York became the largest state to legalize daily fantasy sports. By the end of , 18 different states had legalized paid-entry fantasy sports contests.

On November 10, , Attorney General of New York State Eric Schneiderman issued a cease-and-desist order to DraftKings and FanDuel, arguing that DFS was illegal under state law which specifies that games where players "risk something of value" and do not have "control or influence" over the outcome, are gambling , [] [] and ordering the two services to cease serving residents of New York.

He stated that DFS "wagers" represented "a wager on a 'contest of chance' where winning or losing depends on numerous elements of chance to a 'material degree'".

He characterized the DFS industry as being a "massive, multi-billion-dollar scheme intended to evade the law and fleece sports fans across the country", causing the "same public health and economic problems associated with gambling, particularly for populations prone to gambling addiction and individuals who are unprepared to sustain losses, lured by the promise of easy money.

In response, DraftKings and FanDuel filed lawsuits against the state of New York on November 13, arguing that their games were one of skill, they had been denied due process due to the Attorney General's abruptness, that he does not have the power to make such a ruling, and that Schneiderman engaged in tortious interference by sending cease and desist notices to their payment processors.

Following the hearing, a spokesperson for the Attorney General declared that he could file a formal lawsuit against the two sites "as soon as tomorrow".

The same day, state senator Michael Ranzenhofer introduced a bill that would explicitly classify daily fantasy sports as a game of skill.

On November 17, , the Attorney General filed a request for a temporary injunction to force DraftKings and FanDuel to cease serving customers in the state of New York.

In the filing, Schneiderman argued that DFS was merely a "re-branding" of sports betting, and in response to claims that DFS constitutes a game of skill, he argued that "a few good players in a poker tournament may rise to the top based on their skill; but the game is still gambling.

During hearings on November 25, , Judge Manuel J. Mendez disputed assertions by the services that a player's choice of athletes represents "control or influence" over the outcome, stating that players are ultimately "relying on someone else's skill" to determine an outcome.

Schneiderman also acknowledged the services' deceptive advertising practices, such as "convoluted" first deposit bonuses.

On January 11, , DraftKings' and FanDuel's stay was granted, meaning that they could continue to serve New York residents, pending the outcome of the appeal.

The Boston Globe believed that a ruling on the legality of DFS in New York State would have industry-wide implications, as it is one of the largest markets for these services.

Surowiecki argued that "given the absence of a good argument for why daily fantasy should be illegal in New York, while the lottery and racetrack betting and casinos are not, the best strategy that DraftKings and FanDuel could pursue might be to get the State Legislature to eliminate the inconsistency and explicitly legalize them.

On March 21, , the Attorney General announced a partial settlement of its lawsuit, under which DraftKings and FanDuel agreed to cease offering paid games in the state of New York, and abide by the result of an upcoming appeals court hearing.

The hearings, which would determine whether the services would have to pay restitution, were tentatively scheduled for September —assuming that legislation legalizing daily fantasy sports was not passed by then.

DraftKings and FanDuel spokespersons stated that the companies were working with local officials and supporting legislation to legalize DFS under state law.

This settlement does not address the false advertising claims, which are still being pursued. The next day, Yahoo announced that it would voluntarily comply with the settlement and also cease offering paid games in the state of New York.

On June 18, , the New York State senate approved legislation to legalize daily fantasy sports. Daily fantasy providers will be required to pay The NCAA considers all paid fantasy games—including daily fantasy—to fall under its prohibition of sports wagering by student athletes , punishable by ineligibility to participate in NCAA-sanctioned athletics for one year.

Advertising for daily fantasy services are also forbidden from being broadcast during telecasts of the NCAA's tournaments. The NFL does not outright ban participation in paid or daily fantasy sports games by its players and staff, but does restrict how much one may win in such games.

FanDuel's Terms of Service bans any athlete, coach, referee, or owner from entering contests for the sport in which they are involved with.

From Wikipedia, the free encyclopedia. This article is about daily fantasy sports. For fantasy sports in general, see Fantasy sport.

Anthem Media Group. Retrieved October 9, The Washington Post. Retrieved October 8, Advertising Age. The Wall Street Journal. September 9, Retrieved October 15, SmallCap Network.

The New York Times. Legal Sports Report. Retrieved December 9, NBC Sports Group. Archived from the original on October 15, Sports Business Journal.

The Sporting News. State of Nevada. Retrieved October 20, Retrieved June 9, Vox Media. New York Times Magazine. Retrieved January 6, Read more….

We love products that think outside of the box to solve problems, and that is exactly what Monkey Knife Fight is. MKF offers the only you vs the house product in daily fantasy… No sharks, no learning curve, DFS in the form of prop betting.

Yahoo is all about creating a level playing field for their DFS players. They have much stricter entry limits, more beginner-only contests, strict no-scripting rules, and have created a product that allows new players to quickly find success in daily fantasy.

While FanDuel may not be too far behind DraftKings in terms of volume, they are trailing in terms of quality of promotions, size of contests, and variety of sports offered.

That being said, their sportsbook is undeniably the industry-best right now. Fantasy Draft offers a subscription based, rake-free fantasy product.

The caveat is you need a subscription to enter more than monthly contests. Try for Free. DraftKings joined FanDuel as one of the two major players in the fantasy industry in late early Fantasy football on DraftKings differs from FanDuel in a few ways.

All of these differences should effect the way you build your lineups. It is easy to use, never slow, never down, and a blast to use.

They came up with a genius solution to a problem that has plagued the DFS industry for years, and that is Pros vs Joes. The skills transition or many people moving from either sports betting or season-long fantasy into daily fantasy is not a steep hill to climb.

The concept is simple, scoring is straight forward, and the rake is an easy concept to grasp. The issue is understanding contest selection and bankroll management.

By entering the wrong contests you open yourself up to the sharks of the industry that abuse entry limits and feast on new players.

With Monkey Knife Fight you are only competing against the house. Daily fantasy sports, in essence, is not a complicated concept.

The winner is the person who drafts the team with the players with the best statistics. DFS, in its purest sense, is like those season-long contests, except boiled down to a single day or week.

Instead of drafting a team for an entire season, you pick a team of players for just a day, or for a single week, in the case of DFS contests for the NFL.

Season-long fantasy — which is often played among friends or co-workers or sometimes against strangers on some free and paid-entry fantasy sites — is usually limited to a small pool of around a dozen or so people.

The other big difference between season-long and DFS is the money involved. While season-long is often a social game with relatively small pots of money up for grabs, DFS players can vie for thousands, and sometimes millions, of dollars.

Each player is assigned a fake value in terms of dollars, and users must construct a roster of players that fall under the salary cap.

If your team does well, you get a cash prize. Examples include:. In addition to the salary-cap model, there is a new class of fantasy products that focus on predicting individual player performance as opposed to choosing a full roster.

While daily fantasy football has always been king in DFS, daily fantasy basketball has become much bigger in recent years. You pick a roster of players from real NBA teams to be on your fantasy roster s.

Then the players earn fantasy points for their performances based on scoring, assists, steals, blocks, etc. Over the course of the season — because contests take place every night — DraftKings and FanDuel will likely hand out more prizes than they do for NFL contests.

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