Fantasy sports and online sports betting are more popular than ever. But many people still wonder: are fantasy sports legal – and how are they different from sports betting?
What are fantasy sports?
In fantasy sports, players create virtual teams made up of real players from a professional league. Fantasy sports players compete against each other to see who can create the best team. The most successful players can earn rewards.
Often these leagues play across an entire season, but daily fantasy sports leagues have also become popular. These leagues have the same structure but operate over a much smaller time frame, such as a week or a day.
Fantasy leagues are so common that even the major professional sports leagues (NFL, MLB) provide fantasy websites and services. Daily fantasy sports providers are growing in popularity and include FanDuel and DraftKings.
Are fantasy sports legal?
The Unlawful Internet Gambling Enforcement Act of 2006 was passed to prohibit online gambling and help protect consumers. This law specifically excludes fantasy sports leagues. This means that fantasy sports leagues are not considered online betting under federal law. The federal law considers fantasy sports a game of skill and not chance. This allows for fantasy sports betting, but it prohibits betting on a single game or player.
Although federal law allows for fantasy sports betting, state law may prohibit this activity. State laws regarding fantasy sport leagues can range from consumer protections to regulations and outright bans. In some states, fantasy sports leagues — specifically daily fantasy sports leagues — cannot operate due to state law.
Be sure to review and understand your state’s rules regarding fantasy sports leagues before becoming involved. You don’t want your hobby to result in serious legal issues. If participating in a restricted state, you could forfeit winnings and be subject to criminal charges.
What about online sports betting?
Online sports betting is different from fantasy sports. Sports betting typically involves placing wagers on the outcome of a game or event or betting on individual players or teams. Today, sports betting laws vary by state and not all states allow it.
Even in states where it is legal, platforms must be licensed and participation may be restricted by age or location.
What about office sports pools?
Office pools are common during sporting events – but they can raise legal and workplace issues. Remember, legality depends on state laws and how the pool is structures. And even if they’re legal in your state, you should consider your employer’s policies when deciding whether or not to join the office pool. Some employers restrict this activity at the workplace. If prohibited, you could face workplace consequences if you participate.
Tips for responsible participation
If you choose to participate in fantasy sports or betting activities, consider these guidelines:
Set a budget
Setting a budget and sticking to it is an important way to avoid financial problems with gambling. Knowing you have a limited amount to spend can help you be a more careful consumer.
Limit your time
Just like money, time can slip away if we don’t plan carefully. Prior to joining, consider the amount of time you’re willing to dedicate to your fantasy team.
Use reputable fantasy sports providers
New fantasy sports leagues seem to pop up every day. Review and investigate leagues before agreeing to join. There are many well-known and reputable leagues available.
Understand the agreement
Read and understand all the terms and conditions of your fantasy football website provider. Is your personal information shared with others? How secure is your financial data? Asking these questions can ensure your personal and financial information is protected.
Recognize warning signs of a problem
Most individuals who participate in fantasy sports and office pools don’t have a problem with gambling. But gambling addictions are common and it can become harmful if it starts affecting your finances or daily life.
To determine if you or someone close to you has a sports gambling problem, consider these warning signs:
- Lying to cover up gambling activity
- High debt and unpaid bills caused by the need to fund gambling
- Neglecting family and work obligations to gamble
- Gambling to alleviate stress, anxiety or depression
- Criminal activity to support gambling
Make informed decisions
Fantasy sports and online betting can be entertaining – but they also come with legal and financial considerations. By understanding the differences, knowing your state’s laws and practicing responsible habits, you can make more informed decisions about participation.
Help is available. Seek resources through your trusted healthcare provider, Gamblers Anonymous or the confidential NCPG helpline.