Could the Online Sports Gambling Community be Affected By The Recent Changes To Fantasy Sports Sites?

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The fantasy league sports industry has grown at a rapid pace over the last decade. It has led to more and more scrutiny from lawmakers that has grown over the last year. Congressmen have been taking legal action and asking for more safeguards and further regulation in the sector. Even the FBI and Justice Department have opened investigations into if the sports sites that offer this service are violating federal law.

One of the leading companies that provides fantasy leagues is DraftKings. There have recently been allegations that the company has been cheating their punters out of money. It is why the calls for tougher regulations have been mounting in recent months. There are calls for this industry to be classed the same as traditional betting strategy firms to protect the people playing the games.

Currently, the fantasy league sports industry is not classed as a betting strategies site. It is as long as have key attributes that include; skill-based contests, set prize pools, and they do not rely on single sports events outcomes. The leading sites have interpreted that this exempts them from the current gambling laws. They have designed games to adhere to the definition of fantasy sports.

There have been calls for Congress to reexamine how the industry is regulated. Many states that have legalized gambling laws are angry that fantasy sports are exempt from the law that regulated them. With the Justice Department and FBI looking into if the fantasy sports sites are violating the current law, it is an uncertain time for this industry.

Even if the current federal laws or its current interpretation does not change, it is getting more complicated by the day for sports fantasy sites. One of the main issues is going to be what laws are passed by each state government. In Nevada, the capital of gambling in the USA, the best sports betting system firms are pushing for a further restriction to this industry citing unfair competition.

It is likely that states will go down the route of passing laws that will mean that fantasy sports operators will be taxed the same as a casino. The current taxation laws mean that companies can offset their taxes by reducing their profits through including the marketing costs. If the laws are changed to meet the current casino taxes, it will mean that they will be taken on gaming revenue and not their profits.

If gaming licenses are introduced into the industry, it will certainly hit the profits of all sports fantasy sites and could even close some them down. If the laws match what casinos have to follow to trade, there will be lots of additional expenses needed to be paid for. Regulatory costs can count for up to 20 percent of the total expenses. It could force all the small operators to close down, with only the larger more established players being able to cope with the changes.

If different laws are introduced in each state, it will mean operators will have to split up their operations. They will not be able to offer huge national prizes as they will not be able to share the entry fees and pool prizes.

Fantasy league sites are becoming the best sports betting system for punters. Over the next year, it is going to be a tough battle for these operators. If government regulation is introduced into the industry, many of the startup will cease to exist. The threat is real and only time will tell if this sector continues its meteoric rise in the gaming sector.

 

Sports Journalist John Hawthorne is keen on helping punters profit from using technology for their betting. John is constantly reviewing betting strategies that claim to use proven algorithmic systems. Follow Hawthorne’s insights at Simply the Bets, sports betting strategies that work.