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.
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
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!
