Daily Fantasy Sports is Legal & Legit
Traditional fantasy leagues have you draft a team, which you then follow for the entire sports season. With DFS, you draft a team from a pool players playing that day (or week) and compete against others in that short-term contest.
For fantasy basketball, you draft a team for a single day contest, and because of the NBA schedule, you can draft new teams and play in contests almost every day. For fantasy football, you typically draft a team for the week – Thursday to Monday, but there could be other contests with even shorter time frames (ie – only Sunday’s games).
DFS, and traditional fantasy leagues, are considered games of skill and therefore legal. At the federal level, the US government explicitly legalizes fantasy sports under the Unlawful Internet Gambling Enforcement Act of 2006.
However, there are some individual states that have laws prohibiting playing fantasy sports for real money – Montana, Washington, Louisiana, Arizona, and Iowa. If you reside outside of these states, then playing daily fantasy sports online for real money is completely legal. Click here to read more.
DFS is a new industry which began late in 2007 so it’s important to watch the development of this industry and the new sites entering the niche.
Daily Fantasy Sports Sites ReviewedDFS Sites - Legit or Scam Reviews
Unlawful Internet Gambling Enforcement Act of 2006
Legal Exception for Fantasy Sports
As mentioned above, the UIGEA states that because fantasy sports is considered a game of skill, then you may stake real money on the contest. Whether you play online or offline is irrelevant. The fantasy contest must meet three critical conditions:
1. The prizes must be announced prior to the start of the contest so everyone know what they can win.
2. Winning basically requires some level of skill and knowledge – contests are not completely random gambling.
3. Winning is not based on the game’s final score, point spread, or performance of any single team or athlete.
Below is the actual verbiage from the UIGEA: