Daily fantasy sports betting has become one
of the great ways for fans to bet and make money without a long term commitment.
Traditional sports betting would require bettors to follow an entire season, but
with daily fantasy sports, bettors can bet on multiple events on any day and
win immediately after the event ends. The Wall Street Journal has covered this
topic and despite the growing interest and popularity of daily fantasy sports
betting, it remains an activity that is under much debate in the USA. The business
model of daily fantasy sports betting sites have been investigated and that
has raised some questions pertaining to the legality of this form of betting. The
arguments from FanDuel and DraftKings, both US based companies, is that fantasy
sports betting is a game of skill, Since it is not based on luck, it is exempt under
the 2006 UIGEA law. It is still a grey area and it is up to each individual US
state to allow or ban daily fantasy sports betting.
Betting sites like FanDuel and DraftKings
have been advertising to US residents during football games, since the NFL season
has just started. This raised a red flag and the legality of these sites is now
being questioned. These billion dollar companies may be a household brand name,
but they cannot stay under the radar and the explosion of ads and interest has
lead to some serious investigating on whether daily fantasy sports betting is a form of gambling.
Sports
Betting Laws per State
The US has recently loosened the laws
pertaining to online gambling, but each state has the ability to legalise or
ban any online betting. In Nevada, the gaming board deemed sports betting is considered
gambling and fantasy sports betting is not covered under the current gambling
laws in Nevada. Nevada does offer online gambling at sites that are licensed by
the state. At this time, there are no sports betting sites registered or
licensed in Nevada, which means that any form of sports betting is in fact
illegal.
In Massachusetts, there has been some upset
and misunderstandings regarding sports betting since the popular Boston based DraftKings
site has been advertising services to US bettors. Based on a recent article
in the Boston Globe, the Massachusetts Law prohibits and form of gambling
unless it is allowed by the Legislature. Even with the popularity of sports
betting, daily fantasy sports sites cannot operate in Massachusetts legally.
Taking
the Daily Fantasy Sports Offshore Online
It is quite evident that daily fantasy
sports betting is a topic of great debate. Until the dust settles and the laws
are clear, a number of US
residents are seeking gambling action offshore. At sites that are licensed
and regulated in other countries, bettors can enjoy sports betting and other
forms of gambling online. The problem of UIGEA is still there and US gamblers
have to find alternative ways to deposit funds at these offshore sites. A
number of other countries, including Australia, have created laws similar to
UIGEA in hoped of deterring residents from engaging in online gambling
activities. However, with the offering of prepaid cards and some ewallets,
residents of these countries still have the ability to register at offshore
sites and enjoy gambling activities.
Understanding
UIGEA
In 2006, the US government passed the UIGEA Act of
2006 and this regulation has been the cause of many problems faces by US
gamblers. The Act made it impossible for US bettors to use their credit or
debit cards to fund off shore casino accounts. Banks and financial
establishments are not allowed to process any payment to or from an online
casino for any US resident. However, the recent changes in law has allowed
individual states the ability to choose whether they will legalise online
casinos and gambling for residents. UIGEA is still in place, which is making it
difficult for certain players who are accessing online casinos in states that
have legalised online gambling.
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