MLB invests in them, as do two NFL team owners, Fox Sports and a small Internet-based firm known as Google.
What could possibly attract the attention of such well-capitalized organizations? The very same enterprises now estimated to churn millions in “entry fees” every week — online daily fantasy sports mega-giants Draft Kings and FanDuel.
These betting sites are now embroiled in a controversy, thanks to a recent investigation by the New York Times. In a wagering world version of “insider trading,” it appears that employees of both firms have used their expert knowledge for personal gain or for the benefit of friends. The most high profile example involved a DraftKings staffer who won $350,000 on FanDuel, purportedly banking on player information that wasn’t publicly available.
Pretty hefty purse when the average winnings equal about $20.
And yet, what might get lost in all the debate is a fundamental question: are these sites really a thinly-veiled version of illegal gambling?
The two now operate in 45 states and seem to skirt federal laws. Yet, when fantasy executives define their work as a “game of skill, not chance,” thoughtful people should wonder.
Could one not argue that winning at horse racing depends upon superior knowledge of the horses, jockey, track and weather conditions and more? Or, is Jason Robins co-founder and CEO of DraftKings more accurate when he says fantasy sports resembles stock market investing?
I leave it to legal experts and public regulators to decide the nuances of single day versus multiple contests, what constitutes more skill than chance and how you determine “no chance” exists whatsoever.
But I will tell you that sports betting is a billion dollar industry and one that often deeply awakens the addictive tendencies especially of young men. And, its impact can be devastating, leading to massive debt, foreclosure and even jail. I know of one man now in treatment whose online sports wagers ultimately jeopardized his home, business and sadly, his marriage.
Some point out that addicts will always find a way to “get what they need.” This is true, but it’s also true that the easier, more covert ways we offer people to gamble, the more likely people will end up hooked.
To me, these fantasy sports look like another illusory and elusive “one more bet” for those who really need one more chance.
