Posts Tagged: Games of Chance

Playing for Keeps: Daily Fantasy Football 2016

When the last online fantasy football game was played, the attorneys general of New York, Nevada and Illinois were throwing penalty flags, state legislators was huddling to set the next play, and the daily fantasy sports leagues were taking it on the chin.

Where are we now? Here’s a 50 state survey:

DFS expressly allowed: CO, IN, KS, MD, MA, MS, MO, NY, RI, TN, WV, VA

Contested: AL, DE, GA, HI, ID, IL, NV, SD, TX

Banned: AZ, IO, LA, MT, WA

Proposed legislation: CA, CT, FL, KY, MI, MN, NE, NJ, NM, OK, PA, SC, WI

No legislation: AS, AK, ME, NH, NC, ND, OH, OR, UT, WY

How about this stat: leading up to the 2015 NFL season, daily fantasy sports leagues spent over $750 million in ads – more than the entire beer industry. In 2015, the top two companies had recorded a combined $3 billion in player entry fees. (more…)

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Enter to Win a Scholarship: Paying for College Through Games of Chance

For many young adults, college classes will be starting soon. For many anxious parents, college costs will be accumulating soon. Thank goodness you can try to bankroll tuition by entering the many available sweepstakes awarding “scholarship” money. For a student, college scholarship sweepstakes offer a simple alternative to actually hitting the books.  For sponsors, college scholarships offer a popular form of promotion to a captive audience and engender goodwill with the community.

While not as difficult as quantum physics, running an effective scholarship sweepstakes does require some pencil sharpening. Here are a few tips: (more…)

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Get Yer Bets in on Iowa: Legal Political Prediction Gambling

Did you know that you can legally trade futures contracts on whether Trump tanks in Iowa or Sanders soars in New Hampshire? Two not-for-profit “stock” markets allow online trading – with real money – on a political prediction market. The Iowa Electronic Markets (IEM) and PredictIt are online not-for-profit “stock” markets run by the University of Iowa and Victoria University, Wellington in New Zealand for educational and research purposes. On these markets people can buy and trade futures contracts based upon predictions of electoral results with trading accounts of up to $500 on IEM and $850 on PredictIt.

How can this be? Both the IEM and PredictIt have received no-action letters from the U.S. Commodities Futures Trading Commission saying these markets were not regulated by the Commodity Exchange Act. (more…)

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Another One Bites the Dust – Daily Fantasy Sports Update

On Wednesday, the Illinois Attorney General declared daily fantasy sports illegal under Illinois gambling law.  The AG Lisa Madigan gave her opinion in response to a request from two legislators who are pushing to legalize this activity.  Interestingly, the AG believed the issue of whether it is a game of chance or a game of skill is irrelevant because any game played for money under Illinois law is illegal gambling.

The AG sent a letter to counsel for FanDuel and DraftKings expecting them to amend their Terms of Service to include Illinois as a prohibited state.

For now, Illinois joins New York, Arizona, Iowa, Louisiana, Montana, Nevada and Washington as states prohibiting daily fantasy sports. More to follow?

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Upcoming Webinar: “What All Lawyers Must Know About Fantasy Sports Gambling”

On January 20, from 1:00 – 2:30 PM, Rob Laplaca will present a Lorman webinar titled “What All Lawyers Must Know About Fantasy Sports Gambling.” The program will answer the questions on everyone’s minds concerning fantasy sports leagues and attendees will learn the legal basis for the operation of these leagues, as well as the basics concerning the differences between games of chance and games of skill to help understand the crux of the current debate on whether these leagues are operating legally. Attendees will also be kept abreast of the latest developments in this rapidly changing field and learn different options for operating legal fantasy sports leagues.

Information about this webinar is available on the Lorman website. Anyone registering for this webinar via the link provided here will receive a 50% discount on the registration fee for this event.

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What You Need to Know About Sweepstakes and Contests

Sweepstakes

A sweepstakes is a chance promotion where the winners are selected randomly, such as random drawings, giveaways, and instant win games.

There must be no purchase necessary to enter a sweepstakes. Entries with a purchase are permitted, but there must also be a free alternative method of entry for everyone, which provides for equal limitations, equal quantity, equal time and equal prizes. Free entry methods include online and mail-in. But watch out for any hidden costs. For example, text messaging is not a “free” method of entry, because of the possible message and data rates that may apply.

For promotions with prizes over $5000 there are registration and bonding requirements in New York and Florida. (more…)

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