This week we wrote that fantasy sports leagues were (arguably) legal because they are games of skill under the Unlawful Internet Gambling Enforcement Act (UIGEA). Yesterday, however, the Nevada Gaming Control Board concluded – after several months of investigation – the pay-to-play daily fantasy sports leagues (DFS) were gambling under the Nevada Revised Statues and therefore, the operators must possess a gaming license from the Nevada Gaming Commission. The full Notice to Licensees of the Legality of Offering Daily Fantasy Sports in Nevada is set forth here. In response, the two largest daily fantasy sports operators, DraftKings and FanDuel, issued statements that they are, at least temporarily, suspending operation in Nevada. (more…)
Posts Tagged: Promotion
Everyone is familiar with the phrase “No Purchase Necessary.” That’s because promotions based on chance – sweepstakes, giveaways, or any promotion where a winner is randomly selected – cannot require a purchase (i.e., consideration) for the chance to win a prize. This is important for many businesses who use promotions to attract new customers.
So, why does it seem that fantasy football is different?
You can’t miss the ads on ESPN, CBS, Fox Sports, among many others, encouraging you to go online and win tons of money playing fantasy football, baseball, and hockey, among others. According to one commercial, one lucky player won $2 million with just a $35 investment. Does this sound like gambling? (more…)
1. Practically every type of promotional activity is regulated in some way:
a. Sweepstakes and contests
b. User generated content on websites and social media;
c. Coupons, gift cards and money-back guarantees;
d. Charitable solicitations;
e. Celebrity endorsements or other testimonials;
f. Marketing to children; and
g. Even trying to give something away for “free”
2. You need official rules for every sweepstakes and contest you conduct. They form a binding contract with the entrants that will help protect you in the event of a dispute.
EXAMPLE: When Kraft mistakenly produced too many winning game pieces for its “Ready to Roll” sweepstakes, they were protected by having a clause in the rules stating they were not liable for printing or production errors. (more…)