It almost seems like daily fantasy sports betting became a billion dollar overnight. FanDuel and DraftKings two of the fantasy sports betting industry leaders said in a joint statement to Reuters that they “are speaking with gaming industry representatives to educate them on the fantasy sports industry as our products are fundamentally separate from, and not competitive with casinos and gaming businesses.”
The line between skill and luck is being somewhat blurred by the trend’s rapid growth. AG Burnett, chairman of the Nevada Gaming Control Board said, “When chance begins to govern the outcome more than skill, you have a form of gaming, and that’s when the need for regulation kicks in.” So with that said, Nevada could push for DFS to be shut down in that state until some kind of regulation is put in place.
The demographic of the fantasy sports industry is the most desired of the gambling industry patrons. The majority of daily fantasy sports players are men, and over 90 percent of them are white. Fifty-one percent are between the ages of 25 and 35. I predict as time goes on, the average age will probably become younger which is similar to what happened when the poker boom arrived. Players are getting younger and younger as the game offers bigger payouts.
American Gaming Association On The Case
Dealing with the legality, the American Gaming Association has created a task force to study the issue without any definitive conclusions yet. Some gaming companies are calling daily fantasy sports unlawful.
John McManus, MGM International’s general counsel, commented, “It is not in the interests of consumers that established gaming companies, which are fully licensed and regulated, are the only market participants that cannot engage in the business,” McManus continued, “MGM Resorts International would like to see daily fantasy sports made legal and properly regulated, similar to our position on all forms of gambling.”
Lobbyists for the fantasy sports industry dispute that characterization, however, saying that their games are clearly more about skill than luck.The Fantasy Sports Trade Association President Paul Charchian went on to say “The money motivation was never a key element of fantasy sports. Now a lot of the marketing in daily fantasy sports is really excessively focused on monetary gain.”