Multimillion-dollar business of the largest companies in the fantasy sports market has been recognized illegal in two states.
In 2006, a law was passed to ban online gambling . For fantasy sports made an exception - then it had a very harmless scale. Therefore, until now, this industry was 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. True, fans of fantasy sports not only receive points at the end of the games, but also 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.
On November 25, in the New York Supreme Court, a trial was held regarding the activities of DraftKings and FanDuel. The prosecution recognized their business in the field of fantasy sports as illegal.
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Today, TechCrunch reported that Illinois Attorney General Lisa Madigan was in agreement with her colleague from New York and also recognized the fantasy league as illegal.
Thus, this business has been prosecuted by law enforcement agencies already in two states. Re / code has previously reported that California regulators are also preparing for an attack on FanDuel.
Madigan cites article 28-1 (a) (12) of the Illinois Penal Code: a legal entity or an individual violates the law if it launches, supports and manages an Internet site that involves people in a game for money or other material values.
It is especially worth noting that, in her opinion, it does not matter whether the gain depends on luck or on any skills. This line of thought breaks the main defense argument, which insisted that in fantasy sports, users do not just bet "on luck" - they analyze the game in the championships, athletes performance, game statistics. All this requires certain skills.
The prosecutor also said that she did not consider users of DraftKings and FanDuel as participants of the competition and as athletes - all the more.
Despite the fact that the fantasy leagues were declared illegal in the two states, until the judicial authorities decided to terminate their activities. So far, the proceedings concerned only the question of how to relate to such a business.
DraftKings and FanDuel do not agree with the findings of the prosecutors. They will do their best to persuade the states to reconsider their attitude to the regulation of fantasy sports and solve this problem at the legislative level.
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. True, fans of fantasy sports not only receive points at the end of the games, but also 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.
On November 25, in the New York Supreme Court, a trial was held regarding the activities of DraftKings and FanDuel. The prosecution recognized their business in the field of fantasy sports as illegal.
')
Today, TechCrunch reported that Illinois Attorney General Lisa Madigan was in agreement with her colleague from New York and also recognized the fantasy league as illegal.
Thus, this business has been prosecuted by law enforcement agencies already in two states. Re / code has previously reported that California regulators are also preparing for an attack on FanDuel.
Madigan cites article 28-1 (a) (12) of the Illinois Penal Code: a legal entity or an individual violates the law if it launches, supports and manages an Internet site that involves people in a game for money or other material values.
It is especially worth noting that, in her opinion, it does not matter whether the gain depends on luck or on any skills. This line of thought breaks the main defense argument, which insisted that in fantasy sports, users do not just bet "on luck" - they analyze the game in the championships, athletes performance, game statistics. All this requires certain skills.
The prosecutor also said that she did not consider users of DraftKings and FanDuel as participants of the competition and as athletes - all the more.
Despite the fact that the fantasy leagues were declared illegal in the two states, until the judicial authorities decided to terminate their activities. So far, the proceedings concerned only the question of how to relate to such a business.
DraftKings and FanDuel do not agree with the findings of the prosecutors. They will do their best to persuade the states to reconsider their attitude to the regulation of fantasy sports and solve this problem at the legislative level.
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/297546/
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