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.
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
For many New Jersey business owners, a closely held company represents decades of work, financial investment, and personal sacrifice. Trusts in business succession planning are one of the most effective tools for protecting that value, allowing founders to control how and when the business passes to the next generation while reducing the risk of disputes, […]
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!
