By classifying daily fantasy sports as gambling — because that’s what it really is — rather than a game of skill, Nevada determined that a proper license from the Gaming Control Board is necessary to do business in the state.
Participants on the sites can compete in games involving NFL or college players, paying an entry fee that goes into a larger pool. Then they try to assemble teams that earn the most points based on real-life stats in a given period of time with a certain percentage of top finishers earning a payout.
Mixed martial arts fans can also compete against one another during UFC bouts. Most recently, UFC Dublin provided the option for MMA to win money via Draft Kings.
Entry fees on DraftKings range from 25 cents to more than $5,000. Some prizes top $1 million.
DraftKings and FanDuel say the sites provide games of skill and not of chance and are therefore protected by the Unlawful Internet Gambling Enforcement Act established in 2006, which has language protecting fantasy sports.
State Rep. George Dunbar (R-Westmoreland) of Pennsylvania has proposed legislation that would ban daily fantasy sports websites in which you can win money unless it is run by one of Pennsylvania’s 12 casinos.
Dunbar’s proposal comes as an amendment to a bill which was originally introduced in May. Then, the legislation was designed to allow state-run casinos, such as Hollywood Casino in East Hanover Twp., Dauphin County, to offer fantasy sports as an extra amenity to customers.
Draft Kings has started an online petition to help fight the new legislation in Pennsylvania.
Daily fantasy sports websites are expected to generate $2.6 billion in entry fees in 2015 and soar past $14 billion in 2020, according to gambling industry analyst Eilers Research.