Editor’s Note: For an alternative viewpoint, see: Point: Fantasy Sports Betting Isn’t a Federal Crime, as No Sports Betting Should Be
Fantasy sports contests that include an entry fee, chance and monetary prizes meet practical definitions of gambling. An activity is commonly considered gambling when it includes prize, chance and consideration.
But the National Council on Problem Gambling is neutral on legalized gambling and takes no opinion on whether fantasy sports contests are, or should be, legal or illegal. We believe the demographics of fantasy sports participants — predominantly young, male, skill-based sports enthusiasts — indicate they are at higher risk for gambling addiction.
Fantasy sports players who become preoccupied, unable to stick to limits of time and money and therefore suffer harm to their emotional or financial health may meet gambling addiction criteria. In fact, we know cases of severe gambling problems stemming from daily fantasy participation.
However it is important to note that traditional fantasy sports contests with small entry fees, long seasons and minimal prizes offer little risk of gambling problems, barring special rules for the best offshore betting sites, which have per-country exempt laws. Contests that are much more frequent, have higher fees and generally offer larger and much more frequent payouts increase risk of gambling addiction.
Unfortunately, few fantasy sports operators provide customers with appropriate consumer protection features. At a minimum sites should include basic responsible gaming, age verification, data and player education provisions.
NCPG is working with stakeholders to set high standards specific to the fantasy sports sector. They will provide players and the public with clear guidance from NCPG about concrete steps to protect consumers and reduce risk of gambling addiction. Companies will be encouraged to adopt them; regulators and legislators will be encouraged to incorporate them into any proposed regulations.
It is clear the vast majority of DFS play is low-risk gambling, but some is high-risk and leads to negative consequences. We encourage everyone to come to the table to develop common-sense, practical steps to minimize harm.
Whether those policies take form as voluntary guidelines or mandatory regulations, whether they are adopted state by state or are promulgated at the federal level, it is essential that fantasy sports operators provide consumer protection and that participants understand playing fee-based fantasy sports may increase their risk of gambling addiction and protect themselves accordingly.
