Fantasy Sports Not Gambling, Bill Declares

Fantasy sports -- a $1.5 billion industry, rabidly participated in by some 15 million people -- will not be defined as gambling under terms of the Unlawful Internet Gambling Enforcement Act of 2006 (HR 4411). The bill, which passed 317-93 in the House, would prohibit the use of credit cards, ATM cards and other forms of electronic fund transfers for any purpose related to Internet gambling.

The bill specifically exempts fantasy sports games, educational games, or any online contest that, "has an outcome that reflects the relative knowledge of the participants, or their skill at physical reaction or physical manipulation (but not chance), and, in the case of a fantasy or simulation sports game, has an outcome that is determined predominantly by accumulated statistical results of sporting events, including any non-participant's individual performances in such sporting events..."

Any readers who have ever played in a fantasy sports league know that while chance plays a part, an intimate and current knowledge of the sport and its players is the key to success.

Fantasy sports have come under fire recently as a result of a lawsuit filed by Colorado attorney alleging that the popular pay-to-play fantasy sports leagues hosted by ESPN, CBS and The Sporting News represent illegal Internet gambling. These leagues typically offer large cash prizes and merchandise to the winners.

Also See: Fantasy Football 101 and Fantasy Baseball Classroom