With the cool breeze of fall comes pumpkin spice lattes, scarves, and, of course, football. Like all sports, football also brings gambling. However, the rise of internet gambling and fantasy leagues has spawned a new twist to sports betting: daily fantasy sports. Federal law and several state laws currently exempt season-long fantasy sports games that adhere to certain criteria from general prohibitions against gambling. Specifically, season-long games are considered “games of skill,” and thus, have garnered more favorable treatment under the law. However, short-term or daily fantasy sports games arguably do not involve the same exercise of skill, as opposed to elements of chance, in order to be considered legal under the same laws. So where does Illinois stand?
According to an advisory opinion issued by Attorney General Lisa Madigan last year, daily fantasy sports are considered gambling in Illinois, and gambling that is not specifically permitted by the state is illegal. However, the legal opinion is largely aimed towards the website operators themselves, such as Draft Kings and Fan Duel. It is unlikely that prosecutors would pursue individual cases against the daily fantasy players. In fact, state lawmakers recently introduced a bill to expressly ban daily fantasy sports, but the legislative session closed without holding a vote on it. It is likely that the debate on how to proceed will resume after the November 8, 2016, election. Given the current pressing budget issues, it is uncertain how much of a priority passing the bill will be. More generally, both DraftKings and FanDuel have filed suits against the Illinois Attorney General. These lawsuits will be decided on three key issues:
- Whether the daily fantasy sports contests offered by DraftKings and FanDuel fit within the statutory exemption for “bona fide contests for the determination of skill”under Section 28-1(b)(2) of the Illinois Criminal Code;
- Whether the “entry fees” to enter the companies’ DFS contests constitute a “bet” under Illinois law.
- Whether the Illinois Attorney General “selectively enforced” the lawby singling out DFS for special punishment, while not targeting season-long contests that share many of the same characteristics.
In sum, the question as to whether daily fantasy sports are legal in Illinois is still up in the air and remains very uncertain. With new raffles, sports leagues, and betting games emerging every day, the attorneys at Rock Fusco & Connelly can help you navigate the legal roadblocks for your business or on an individual basis.