The daily fantasy sporting companies “FanDuel” and “DraftKings” are being reconsidered as illegal gambling websites rather than games of skill. Many states are criticizing the websites, and are attempting to deem them illegal. New York has led the way and shut the websites down entirely in the state. The New York State attorney general, Eric Schneiderman, has demanded that the websites no longer take entries in New York.
The incident that caused all of this controversy to begin with was when a “DraftKings” employee won $350,000 in a contest on their competitor, “FanDuel”. It raised questions about the access of classified information that the employees has and could use to their advantage. Since then, both websites have banned any employees from entering any daily fantasy contests on their competitor’s website. Users of the websites are angered by this and multiple class action lawsuits have been filed suing the companies for “negligence, fraud, and false advertising” (ESPN.com).
Logan Carter(’16) had this to say about the daily fantasy sports websites: “I do not think that it takes skill to win because when I recently won some money on “FanDuel” I made my lineup in less than five minutes while I was eating my breakfast that morning. I enjoy playing very much, and I won’t stop playing unless it gets shut down. I definitely think that it will get shut down sometime in the near future.”
Multiple other states have begun investigations into the companies. Per the New York Times, Nevada regulators shut down the websites until they could obtain gaming licenses. A Florida grand jury subpoenaed the fantasy sports trade group’s records, and the F.B.I has started to interview fantasy players in Boston, Massachusetts. Nearly a dozen other states are also considering some form of fantasy sports legislation.
If you are someone who does play daily fantasy contests on either of these websites you should proceed with caution because your chances of winning are much slimmer than you think, and the people featured on the companies commercials do it for a living and are much more experienced.