Fantasy Sports was given a special exemption from the Department of Justice it was given from Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) for their sites, This appeared to be a victory for approval of online sports gambling to be accepted in the future.
It was thought that nothing could go wrong when two or even more individuals from different sections of the country have a face-off with fantasy teams for a collective prize fund?
Over the previous week or so, information has come to light that employees who work for the nation’s top fantasy sports website, DraftKings, has been found to be playing and winning, large amounts of money at DraftKing’s most prominent competitor, FanDuel. What has emerged was that DraftKings employees were also allegedly making use of data which was derived from the database at DraftKing, leading them to make player suggestions that resulted in victories in multi-player and head-to-head contests. Although making use of the data may not be illegal this is due to lack of regulations that govern how the sites work. It does appear to infringe on the ethics of contestants competing within a level playing field.
Currently it is the lack of regulation that has allowed the gaming niche to grow at such an amazing rate.
Fantasy Sports sites currently are generating about $2.6 billion in entry fees, and this is expected to rise to over $14 billion in the next five years. An aside note, none of the employees from site have been found to be competing on their owns sites.
Proponents and opponents of online sports gambling within the USA have had their goals fixated onto the fantasy sports industry. A high level of success and a low level of issues could turn out to be all it will take, to convince the US lawmakers, that the country might be
ready to be able handle sports gambling and not sacrificing ethics and integrity of the sports that are involved. Currently sports gambling is the only means of betting that is illegal across all of the 50 states
There is no mistake that the new information involving Fantasy Sports sites, is a major blow to any prospect of getting sports gambling accepted legally in this country, and any signs that there is impropriety are sufficient to shut down any discussions before they begin. You can bet that the casino lobbyist will be thrilled by the new revelations. This is exactly what all the warnings from the lobbyists have been about. When one look at it, it is proving to be highly difficult to police the Internet and especially if the gaming sites are not willing to police themselves.
After the current revelations with regards to Fantasy Sports it is going to open the doors for many more talks about these regulations. Whenever an industry is subjected to newer levels of disclosure regarding fraud prevention, and it will change the way the industry will be able to market and offer their product. At the very least, Fantasy Sports players will be starting to demand transparency on the Fantasy Sports sites. The players need assurances that the data on the sites will not be used for providing anyone with an unfair advantage. When the special exclusion was granted to operators, it was assumed that playing Fantasy sports would be a game of skill and all of the participants would be operating on a level playing field. Obviously, it’s not the case at this time.
Opponents of any form of gambling on any level, have often looked at gambling a being devil’s workshop. They are at all times on the lookout for that so-called “AHA” moment, and this is one of the moments that has happened. It is becoming very clear that providers do better job and make sure that abuses are eliminated.