A battle is raging over the legalization of sports betting in the United States. As a result, sports fans and businessmen are betting on their favorite teams online. Fantasy sports has become a booming business. In lieu of other forms of legal sports betting, many have flocked to fantasy gaming websites like DraftKings and FanDuel. Not only are fans winning and losing billions of dollars online, major sports organizations like the NBA are signing lucrative contracts with these websites while combating any efforts to legalize sports betting offline. This duality has some legislators and industry professionals crying foul.
Currently, federal law strictly prohibits the licensing, advertising, sponsorship, operation, or authorization of gambling on any amateur or professional sport. Some states have fought to legalize sports gambling in their states, but have been met with threats of legal action and cease and desist efforts by the same organizations that engage in fantasy sports. But the league disputes that fantasy sports is sports betting at all. Instead, they claim, that fantasy sports is a skill-based pursuit, whose outcomes are determined by multiple variables instead of a single game so it isn’t technically gambling.
This explanation falls flat for the state of New Jersey, whose Attorney General is accusing the NBA and NFL of trying to monopolize sports betting. FanDuel and DraftKings have contracts with the New York Knicks, Los Angeles Lakers, the Philadelphia 76ers, Dallas Mavericks, Orlando Magic, Chicago Bulls, and the Brooklyn Nets. Fantasy sports has also extended into the NFL with teams like the New England Patriots and Washington Redskins ready to play.
Until the United States finally legalizes sports betting, fantasy sports will continue to reap the rewards of being the only sports gambling game in town. Now is the time for merchants to carve out a spot in the fantasy sports world. The fantasy sports merchant account managers with eMerchantBroker.com will provide 24 hour protection for your merchant account. Our full service merchant suite will take your business to the next level.