The multimillion-dollar business of the largest companies in the fantasy sports market may be declared illegal tomorrow

    In 2006, a law was passed banning online gambling . An exception was made for fantasy sports - then it had a very harmless scale, and there were simply no daily tournaments more like casinos or sports bets (against which sports federations are opposed). Therefore, until now, this industry is not regulated by the authorities. Now two of the largest companies are operating in the fantasy sports market - FanDuel and DraftKings .

    Fantasy sports are online games in which participants make up a team of real players of a championship. According to the results of the championship games, participants receive points. True, fans of fantasy sports receive not only points, but win the corresponding amount of money. This game is very popular in the USA and Canada, where billions of dollars are spinning in the industry.

    Tomorrow, November 25, the New York Supreme Court will hear proceedings regarding the activities of DraftKings and FanDuel. The prosecution believes that their business in the field of fantasy sports should be declared illegal and cease operations of companies, at least in New York.

    The court has to decide whether their services should be considered gambling, and companies - violators of the law.
    If the court sided with the prosecution, the business of companies in New York could be frozen for months. DraftKings may lose 15% of users. The company's revenue in New York in 2014 amounted to $ 10 million. DraftKings total revenue reached $ 30 million.

    The fate of fantasy sports nationwide may depend on a court ruling in New York. If the accuser succeeds, other states may follow New York's example. It is known that California regulators are also preparing for an attack on FanDuel, writes Re / code.

    DraftKings and FanDuel work with the best lawyers. The defense will insist that in fantasy sports, users do not just place bets “on luck” - they analyze the game in the championships, athletes' performance, and game statistics. All this requires certain skills. And the monetary gain will depend on the development of these skills - even in a weekly or daily tournament.

    In September, Bloomberg reported that only 1.3% of users won cash prizes in the previous three months. Companies emphasize that among this number of players - the vast majority of those who have achieved a high level of regular training of analytical and other skills.

    The charge reminds of gambling, which also requires certain skills, but this does not make them legal.

    Despite the controversial reputation of fantasy sports, despite the fact that it is still “illegal”, the fantasy sports industry is rapidly developing.

    FanDuel and DraftKings have raised hundreds of millions of dollars of investment. This year, companies will pay about $ 1 billion in prize money to users who participate in fantasy tournaments. DraftKings investor is Fox Channel and National Sports League.

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