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Are fantasy sports sites that charge you to play and give a monetary prize to the winner considered betting sites?

gambling sites such as sites were you can play poker are illegal in the US right? But what about Fantasy sports sites that charge you and give money to the winners? It seems like you would be betting on your team to win in a way and would then be illegal. But on the other hand your just paying to use the site with the potential to win something at the end, not necessarily through a bet.

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Attorney answers (1)

Reputation Level 10
The Unlawful Internet Gambling Enforcement Act of 2006 does not classify fantasy sports sites as "gambling." The rationale seems to be that while you are paying a fee with the possibility of winning a prize your chances of winning are based more on your knowledge of the team and individual players (leading you to select certain members for your fantasy team) than on pure chance. However, if you were to select a "fantasy" team that consisted of all the current members of a real team there really wouldn't be much actual difference between participating in the fantasy league and putting money on a team with a bookie. The subtle difference between fantasy sports and gambling is probably why many states are searching for new ways to challenge the legality of fantasy sports with fees and cash prizes despite their current status as an exception under the law.

The above answer is not "legal advice" as specified under any pertinent rules governing the Professional Responsibilities of Lawyers and should not be relied upon. An attorney-client relationship has not been established by virtue of this correspondence. Legal issues are often complex and involve local laws and facts which may not be effectively communicated without a complete consultation.
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