Multimillion-dollar business of the largest companies in the fantasy sports market may be declared illegal tomorrow
In 2006, a law was passed to ban online gambling . For fantasy sports, an exception was made - at that time it was a very harmless scale, and there were simply no daily tournaments more like casinos or sports betting (opposed to sports federations). Therefore, so far this industry is not regulated by the authorities. Now the market of fantasy sports are two of the largest companies - FanDuel and DraftKings .
Fantasy sport is an online game in which participants make up a team of real players of a particular championship. According to the results of the championship games, participants receive points. True, fans of fantasy sports not only get 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 hold a hearing on the activities of DraftKings and FanDuel. The prosecution believes that their business in the field of fantasy sports should be recognized illegal and to stop the work of companies, at least in New York.
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The court will have to decide whether their services should be considered gambling, and companies violating the law.
If the court takes the side of the prosecution, the business of companies in New York may be frozen for months. DraftKings can lose 15% of users. The company's revenue in New York at the end of 2014 amounted to $ 10 million. DraftKings total revenue reached $ 30 million.
The fate of fantasy sports across the country may depend on the court decision in New York. If the accusing side succeeds, other states may follow the example of New York. 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 make bets "for good luck" - they analyze the game in the championships, the performance of athletes, game statistics. All this requires certain skills. And the development of these skills will determine the cash gain - even in a weekly or daily tournament.
In September, Bloomberg reported that over the previous three months, only 1.3% of users won cash prizes. 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 prosecution recalls 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 “outlawed,” the fantasy sports industry is developing rapidly.
FanDuel and DraftKings have attracted hundreds of millions of dollars in investment. This year, the company will pay about $ 1 billion in prize money to users, participants of fantasy tournaments. The DraftKings investor is Fox Channel and the national sports leagues.
Fantasy sport is an online game in which participants make up a team of real players of a particular championship. According to the results of the championship games, participants receive points. True, fans of fantasy sports not only get 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 hold a hearing on the activities of DraftKings and FanDuel. The prosecution believes that their business in the field of fantasy sports should be recognized illegal and to stop the work of companies, at least in New York.
')
The court will have to decide whether their services should be considered gambling, and companies violating the law.
If the court takes the side of the prosecution, the business of companies in New York may be frozen for months. DraftKings can lose 15% of users. The company's revenue in New York at the end of 2014 amounted to $ 10 million. DraftKings total revenue reached $ 30 million.
The fate of fantasy sports across the country may depend on the court decision in New York. If the accusing side succeeds, other states may follow the example of New York. 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 make bets "for good luck" - they analyze the game in the championships, the performance of athletes, game statistics. All this requires certain skills. And the development of these skills will determine the cash gain - even in a weekly or daily tournament.
In September, Bloomberg reported that over the previous three months, only 1.3% of users won cash prizes. 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 prosecution recalls 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 “outlawed,” the fantasy sports industry is developing rapidly.
FanDuel and DraftKings have attracted hundreds of millions of dollars in investment. This year, the company will pay about $ 1 billion in prize money to users, participants of fantasy tournaments. The DraftKings investor is Fox Channel and the national sports leagues.
Source: https://habr.com/ru/post/296690/
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