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It's easy to assume that cryptocurrency eg: Bitcoin, Ripple, Ethereum, Litecoin, etc. They're not. Cryptocurrencies are a clever application of a much cleverer technology — the Blockchain. In this post, I will cover some of the basic concepts of the blockchain so you understand what it is, how it must be conceptualized, and what can be built on top of it. But as with all things, they make more sense if you understand why they were invented, before you get into what they do.



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In , Fantasy Sports Live launched its website, becoming the first major daily fantasy sports company in the United States and effectively beginning the DFS era. This was an important question because at the time PASPA prohibited states from crafting legislation to allow sports betting, but the federal law has since been repealed by the Supreme Court as of May and today, states are now allowed to determine whether to allow sports betting.

The federal law prohibited the transfer of funds for gambling but contained specific language in the act and defined fantasy sports to not be considered as a form of an unlawful wager — making it exempt from the law. But is DFS a form of gambling? Each day, week, or pre-determined amount time, real-life athletes are attributed points based on their statistical performance in real games, which is then totaled to determine a winner between participants who have full managerial control over the two imaginary teams.

In traditional fantasy sports, participants draft players at the start of the season and can trade players or add free agents over the course of the season just like real sports teams. As an example, a participant in a fantasy football league would, along with the other league participants, have an initial draft to select players to fill out a fantasy football team roster before the start of the NFL regular season.

Depending on how the fantasy sports league is setup, a salary cap may also be instituted to further the experience of running an imaginary team identical to that of a real-life sports franchise where better players cost more to have on a team and vice versa.

Fantasy sports leagues can be played for free or have an entry fee. However, this is where traditional fantasy sports and daily fantasy sports comparisons branch out into two separate types of fantasy-style games. With DFS, participants are not locked into a team at the start of the real-life and fantasy sports seasons, but instead are locked in on a daily or weekly basis and have the ability to reset and draft another team after only a day or week.

In traditional fantasy football, an individual NFL player is limited to only one team in a league unlike DFS which allows an individual NFL player to be drafted onto multiple teams in multiple entries. Here is an example of both:. Weekly Contest - Draft a team of NFL players from all teams competing in all games from a specific given week during the NFL regular season, playoffs, etc.

The goal is to draft a fantasy roster of NFL players the DFS participant believes will score the most points possible during a game or week in order to be eligible to win a portion of the prize pool. To be eligible for the prize pool and submit a drafted fantasy team into a contest, the participant must pay an entry fee, which varies based on the contest chosen.

The entry fee can range from a couple bucks to thousands of dollars with the amount of the entry fee and number of overall entries determining the size of the prize pool. DFS providers do offer free contest with cash winnings and other prizes as well. With daily fantasy sports explained and how it is structured in its traditional format, now the focus turns to what makes DFS controversial from a legal viewpoint.

Gambling is defined as the act of playing a game by risking money or property on an uncertain outcome of an event with the intent of winning money or property. The Unlawful Internet Gambling Enforcement Act UIGEA was signed into law in and prevented the use of online payments, such as credit card transactions, for online gambling in attempt to curb the rise of gambling on the Internet — particularly at poker websites.

UIGEA decimated chunks of the online gambling industry, but the act specifically provides an exception for fantasy sports, declaring it a skill-based game with results "determined predominantly by accumulated statistical results of sporting events, including any non-participant's individual performances in such sporting events" to not be considered as an unlawful wager on sports.

This opened the door for the introduction of daily fantasy sports and allowed it to take a sizeable slice out of the market pie that today includes over 60 million fantasy sports participants in the U. In , the legally of DFS was challenged by politicians from several states with many arguing that DFS is basically a prop bet on the uncertain nature of player performance put into a pool with other participants.

These states also held that DFS does not require skill like traditional fantasy sports because the ability to manage a roster over the course of a given sports season does not apply like with traditional fantasy sports. The notion of a prize pool is a position the state of Nevada took, ruling it a form of sports wagering where all DFS operators must have a sports pool license to operate in the state or cease operations.

None of the major companies have chosen to apply or pay for the gambling license in Nevada. This prize pool uses the traditional fantasy football scoring system, is based on a salary cap, allows a maximum of entries from any individual participant.

It is important to note that most DFS contest have guaranteed prize pools GPP regardless of whether the entry cap in a contest is reached, which is the case with the above example. Some contests are not held if the entry cap is not reached, and in this scenario, participants are refunded the entirety of his or her entry fee. This probably sounds equivalent to a raffle of sorts but churches and non-profit organizations hold those all the time, so why did some states ban or limit DFS operations?

Here is an example of odds on an NFL point spread :. In the example, the second number in parenthesis indicates the odds and in turn, the payout for picking the winning team. When it comes to DFS, companies like FanDuel and DraftKings do not use odds like traditional sports betting, however this does not mean odds are not used in their formula.

This is not comparable to a raffle or lottery because all tickets in both have an equal chance of winning where drafting a roster in DFS does not. DraftKings routinely posts the statistically odds of users winning to show transparency.

At the time of write this piece the odds of DraftKings users winning a contest are:. Both the Past 7 Days and Past 30 Days results from all DFS sports contests held by DraftKings show the odds are weighted against a participant by a much larger margin than a traditional point spread at a sportsbook, where Perhaps the most important factor in DFS on whether it is gambling is the use of the salary cap because the salary of a player can be viewed like that of odds from a sportsbook.

The amount of salary of an NFL player in a contest is determined by how likely they are to perform in his real-life NFL game. A player who has the highest salary should, in theory, gain the most amount of fantasy points for the contest. The salary cap and the salaries are made by an algorithm to create variation among entries. If every contest participant drafted the same roster with the theoretical best players, then every contest would likely end in a tie for 1st place.

However, this became grounds for a court case in , which sparked legislative moves from states and led to ESPN discontinuing sponsored segments by DraftKings but agreed to still run advertisements.

This resulted in both DFS providers expressly prohibiting any employee from providing any company information to anyone outside the organization and not allowing any current or former employee to participate at any daily fantasy sports contests to further ensure credibility and the integrity of the service both provide. The algorithm used by DFS companies is one of the primary arguments made by state lawmakers as to why DFS should be considered gambling even though the vast majority of states consider DFS to be a skill-based game where higher sports knowledge increases the chance of winning.

In total, 41 states and Washington D. All major DFS providers are not permitted to take customers from 9 states. Playing daily fantasy sports has become a mainstream and generally more accepted way to wager and attempt to win money on sports as opposed to tradition sports betting, but even that archaic view is rapidly shifting since the repeal of PASPA with more states becoming more open to legalizing sports betting to increase state tax revenue as time passes by.

Yes, it is gambling in a unique form created by the exclusion of fantasy sports in the wording of UIGEA federal law to its benefit and thus, being declared legal by a clear majority of states. With that being said, DFS or even traditional sports betting as well should not be considered malicious or be accused of running gambling companies in a malevolent manner. Trusted and legally licensed sportsbooks and daily fantasy sports operators do not hide anything other than their probability formulas and algorithms used to determine odds and player salaries.

Detesting either for these reasons would be like calling Coca-Cola a shady business just because they refuse disclose their secret recipe. In fact, an argument could be made that both are among the most transparent businesses in the world today, since the numbers never lie and are displayed clear as day before placing a bet or paying an entrance fee. Like sports betting, DFS is clearly gambling by definition and are both also games of skill requiring a person to be truly adept at understanding both the sport being wagered on and the value of numbers in order to beat the odds, which are weighted against the person placing a bet or paying an entry fee.

Connect with us. Is DFS Gambling? Daily vs Traditional Fantasy Sports Fantasy sports leagues can be played for free or have an entry fee. DFS Season Goals The goal is to draft a fantasy roster of NFL players the DFS participant believes will score the most points possible during a game or week in order to be eligible to win a portion of the prize pool.

Is DFS a form of gambling? What are the odds of winning in Daily Fantasy Sports events? At the time of write this piece the odds of DraftKings users winning a contest are: Both the Past 7 Days and Past 30 Days results from all DFS sports contests held by DraftKings show the odds are weighted against a participant by a much larger margin than a traditional point spread at a sportsbook, where How does the salary cap work in DFS?

Which states allow DFS? Summary of Daily Fantasy Sports Playing daily fantasy sports has become a mainstream and generally more accepted way to wager and attempt to win money on sports as opposed to tradition sports betting, but even that archaic view is rapidly shifting since the repeal of PASPA with more states becoming more open to legalizing sports betting to increase state tax revenue as time passes by.

Is DFS a form gambling in terms of the most basic definition? But being more skilled and knowledgeable than the person next to you does. By Mezzo Parks. By Anderson Armistead.



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Is DFS Gambling?

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In , Fantasy Sports Live launched its website, becoming the first major daily fantasy sports company in the United States and effectively beginning the DFS era. This was an important question because at the time PASPA prohibited states from crafting legislation to allow sports betting, but the federal law has since been repealed by the Supreme Court as of May and today, states are now allowed to determine whether to allow sports betting. The federal law prohibited the transfer of funds for gambling but contained specific language in the act and defined fantasy sports to not be considered as a form of an unlawful wager — making it exempt from the law.


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