Fantasy Sports vs. Sports Betting

The fantasy sports industry is growing primarily due to the exposure that it receives from the sports leagues. The Unlawful Internet Gambling Enforcement Act (UIGEA) that was signed into law in 2006 by President Bush has a carve out in the legislation that makes fantasy sports legal, while criminalizing the processing of payments using all other forms of online gambling.

Most expert would like to know what makes betting on fantasy sports any different from the
other forms of online gambling. It would seem that the only difference is that the NFL
sent lobbyists to Washington to petition for an online gambling ban with an exception
for fantasy sports. It would be easy to assume that this would give the sports leagues
one of the only legal forms of sports betting or online gambling within the United States.

The good news is that the UIGEA has been delayed once and it may disappear completely if
Congress passes one of the gambling regulation bills that is due to be voted on. Individual
states within the US have already taken steps to legalize online gambling, and some of
these states are even moving toward legalizing sports betting. The regulation of the sports
betting industry will deeply impact the fantasy sports industry. Yes, fans will continue
to play fantasy sports but it is much more thrilling to actually bet on the outcome
of a real game, and then watch it on television with a reason to cheer for the team.