Most people know fantasy sports as a game in which individuals select a set of professional players before the sports season begins and accrue points based on those players’ performance during said season. Despite ambiguous gambling laws however, a new daily fantasy sports trend has emerged whereby gamers pick players on a given day and wager on their performance in a single game.
Forbes recently noted that this practice has garnered attention from investors, who are now pouring money into online start-ups that facilitate daily sporting transactions. However, it has also piqued the interest of sports analysts, many of whom argue that daily sports betting may not qualify as a safe haven under the 2006 Unlawful Internet Gambling Enforcement Act.
Currently, firms and players contend that payments from daily sports betting are protected under the act, analysts note that these types of games didn’t exist when the legislation went into effect and therefore require special consideration.
Forbes contributor Mark Edelmen wrote that “no court has assessed whether daily fantasy games fall within this safe haven under the UIGEA.” He also noted that courts have failed to make a final determination about whether daily fantasy sports also comply with state gambling laws. Litigation is ongoing in a number of states to provide more clarity on the legality of this growing trend.
Despite these legal challenges, investment in daily sports betting continues to grow, the Los Angeles Times reports. The newspaper notes that one firm, which it declined to name, received a $25 million cash infusion after developing a series of daily online games.
Jed Kleckner, director of investment company Cantor Ventures, told the Times that daily sports betting is likely to continue attracting more investor interest as it grows.
“This was a slam-dunk opportunity to get involved in something at just the beginning of its life cycle,” said Kleckner.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
