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The Nature of Daily Fantasy Sports

Daily fantasy sports (DFS) has become a hot ticket for sports buffs seeking fresh ways to engage with their favorite games. Despite its recent surge in popularity, it's not a new kid on the block - it's been around since 2007. This thrilling pastime gives players a chance to roll the dice, flex their skills, and potentially pocket some extra dough.

With sports authorities worldwide either hosting or green-lighting DFS games based on their leagues, it's no wonder folks are chomping at the bit to join the fun. We get it, and that's why we've cooked up this article just for you.

In this piece, we'll pull back the curtain on daily fantasy sports, breaking down how it's played and what it takes to come out on top. We'll cover the nuts and bolts, giving you the lowdown on everything you need to know to dive into this popular game. By the time you've finished this article, you'll be able to tell if DFS is your cup of tea. So, buckle up and let's get this show on the road.

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Daily Fantasy Sports: The Meaning

You may ask, "what is DFS fantasy?" Well, it's not rocket science and is, in fact, easy to understand. However, there's a reason why it is one of the most popular types of online games played right now. And that's because it is fun and can help get some extra cash.

Daily fantasy sports is quite the game if you're talking about innovation. It is based on real-life happenings in the world of sports. It is like a simulated version of sports leagues. More impressive is that you can play it over time and win differently. It is played in leagues such as the English Premier League, La Liga, the NBA, and the NFL. Daily fantasy sports is quite the game if you're talking about innovation. It is based on real-life happenings in the world of sports. It is like a simulated version of sports leagues. More impressive is that you can play it over time and win differently. It is played in leagues such as the English Premier League, La Liga, the NBA, and the NFL.

To play on fantasy sports sites, you need to invest time and effort into it. Since it is based on real-life events, you have to follow up on coaches, players, teams, injuries, and anything concerned with the sport you're playing fantasy sports on. You'd occasionally see fantasy sports players scratching their heads about who to choose, who to start, who not to choose, and whatnot. This is because playing DFS requires you to think from the position of a real-life coach, only virtually.

The main difference between daily fantasy games and full-season fantasy sports is the timeframe. Instead of waiting for the player statistics to accumulate points over a whole season, you'll wait one day or one week to know the results. This one takes less time than season-long games like fantasy football betting and can be played quickly. You can get paid quickly if you play daily fantasy games and win daily.

Unlike full-season fantasy sports, which is more of a social game, DFS betting involves real money paid to participate. Many more people participate in fantasy sports because of the larger payout. However, there is a larger payout because every participant is made to pay a certain fee to play. It's like a casino game. Where to play, you need to stake some money.

Latest Daily fantasy News

July 3rd, 20254 mins

Court in California Rejects Underdog’s TRO Request for DFS Opinion

A court in Sacramento, California has denied Underdog's request for a Temporary Restraining Order for the Office of the Attorney General Rob Bonta. AG Bonta is scheduled to issue his opinion on Daily Fantasy Sports, and this opinion may substantially affect Underdog's operations in the state.

A California judge has denied Underdog Sports' attempt to block Attorney General Rob Bonta from issuing a legal opinion on the status of Daily Fantasy Sports (DFS) in the state, dealing a blow to the fantasy sports and betting operator's efforts to safeguard its California operations.

Judge Jennifer Rockwell of the Superior Court of California, County of Sacramento, dismissed Underdog's ex parte motion for a temporary restraining order on Wednesday. The motion, filed on July 1, sought to halt the imminent release of Bonta's anticipated opinion, which is widely believed to conclude that most forms of paid fantasy sports are illegal under current California law.

Court finds no urgency for intervention

In her ruling, Judge Rockwell emphasized that Underdog had ample time to challenge the attorney general's authority. The court noted that the DFS legal review was prompted more than 18 months ago when State Senator Scott Wilk formally requested an opinion from Bonta.

"The fact that Petitioners delayed filing this action does not constitute a basis for ex parte relief," the ruling stated. Furthermore, the court underlined that any forthcoming opinion from the attorney general would not carry legal force on its own, nor would it change existing law.

"The Attorney General's forthcoming opinion on fantasy sports does not effect any change in law and does not carry the weight of law," the court noted. "As a result, the court explained that the protective relief we sought was not necessary," a spokesperson for Underdog said in a statement following the decision.

Underdog disputes Bonta's authority and legal interpretation

Despite the court's ruling, Underdog continues to challenge Bonta's authority to issue an opinion on the matter. In its motion for the TRO, the company alleged that any opinion the attorney general might issue would rely on factual determinations that, under California law, fall outside the scope of the opinion process.

"The last two Attorneys General, Kamala Harris and Xavier Becerra, did not issue opinions on fantasy sports," an Underdog spokesperson stated. "Attorney General Bonta has been in office for more than four years without questioning fantasy sports games."

Underdog maintains confidence in the legality of its operations and believes California law supports fantasy sports contests. The company drew parallels to legal battles in other states, noting that courts in both Illinois and New York ultimately rejected attorney general opinions that deemed DFS unlawful. "We are optimistic the law will be followed and are confident in the legality of fantasy sports in California," the spokesperson added. "If a negative opinion is issued, fantasy sports will prevail on the merits."

Opinion expected any day, lawsuit still ongoing

While the request for a restraining order has been denied, Underdog's broader lawsuit against Bonta remains active. The company is contesting whether the attorney general has the legal authority to issue such an opinion on DFS in the first place.

The court's decision means Bonta is now free to release his opinion, which observers expect to arrive as soon as Thursday, the 3rd of July. While it may not carry the force of law, a negative stance from the attorney general could have significant implications for the perception and regulation of fantasy sports in California.

In the meantime, Underdog has signaled that it will continue to operate in the state. We thank the court for that clarity and look forward to continuing to offer our fantasy contests in California, the company said.

July 2nd, 20255 mins

Underdog Fantasy Takes Legal Action Against California AG Over DFS Judgment

The saga is just beginning: we've already reported that the California AG is set to release its opinion on DFS in the state, which may make it illegal - and now, we've just learned that Underdog has sued the Attorney General in order to stop the AG from releasing its opinion on Daily Fantasy Sports.

Daily fantasy sports operator Underdog has filed an emergency lawsuit to stop California Attorney General Rob Bonta from issuing a legal opinion that could significantly impact the fantasy sports market in the state.

Filed Monday in the Sacramento Superior Court, the lawsuit argues that the attorney general lacks the legal authority to issue such an opinion and warns that doing so could cause 'irreparable harm' to the company. The anticipated opinion is expected to declare daily fantasy sports illegal under California law - a move that Underdog says would not only destroy its own operations but also upend an industry that has operated in the state for decades.

Underdog warns of 'imminent irreparable harm'

In a memorandum supporting its request for a temporary restraining order or TRO, Underdog said it was blindsided by the impending release of Bonta's opinion. The company notes that approximately 10% of its overall business is tied to California customers.

"Without this Court's immediate intervention, this unlawful gambit may succeed," the memorandum states. "Underdog faces imminent irreparable harm - from fleeing customers, risk-averse banks and payment processors, and the loss of investment and goodwill - if the Attorney General issues the opinion as planned."

The company is seeking the TRO to preserve what it describes as the long-standing status quo for DFS in California, pending further court review.

Challenging the Attorney General's authority

At the heart of the lawsuit is Underdog's contention that the attorney general has no authority to weigh in on the legality of DFS through this type of opinion. The company asserts that such legal opinions are limited to questions of law directly tied to the responsibilities of the officials requesting them.

"Absent relief from this Court, Attorney General Rob Bonta will issue an opinion later this week that will decimate fantasy sports in California," the filing reads. "Attorney General Bonta should be enjoined from doing so, not because he is wrong in his views on the legality of fantasy sports - though he certainly is - but because...he lacks authority to issue the opinion."

Underdog contends that neither of the statutory requirements are satisfied in this case, and therefore the AG's office is overstepping its bounds.

Pressure campaign alleged

In a supporting declaration, Underdog attorney David Gringer of Wilmer Cutler Pickering Hale and Dorr LLP claimed that the AG's office is using the forthcoming opinion to apply pressure on DFS companies to exit the state voluntarily. According to Gringer, a representative of the AG's office indicated that the goal was to follow the playbook of Texas Attorney General Ken Paxton, whose 2016 opinion led one major DFS company to cease operations in that state.

"The representative stated that...the goal of the Attorney General's office would be to use the threat of an enforcement action... to pressure Underdog into agreeing to leave California entirely," Gringer's declaration reads.

Citing California's legal guidelines

Gringer also questioned the internal guidelines used by the AG's office in deciding when to issue opinions. According to state law (Section 12519), the attorney general may only issue formal legal opinions at the request of certain state officials - and only when the questions pertain to the duties of their respective offices.

When asked about these limits, the AG's office reportedly claimed that it was obligated to answer all questions posed by legislators, regardless of context. But Gringer pushed back, including a reference to the AG office's own published guidelines that contradict such an interpretation.

The attorney general's office has not publicly responded to the lawsuit, but a formal legal opinion is still expected by the end of the week. If issued, the opinion could lead to widespread disruption in California's thriving DFS sector.

June 30th, 20255 mins

California AG Eyes Possible Ban on Daily Fantasy Sports

California may soon make all fantasy sports illegal, as confirmed by several sources. In a statement, the Coalition of Fantasy Sports, which includes such platforms as PrizePicks, Betr, Splash Sports, Underdog Fantasy, and Dabble, have deemed the prospective change devastating to millions of DFS fans in California.

Rob Bonta, the Attorney General of California, is on the brink of issuing a legal opinion that could deem online fantasy sports illegal in the state, according to multiple sources. The decision, expected in the coming days, may fundamentally alter the future of fantasy sports in California and put at risk billions of dollars in business funds.

Bonta's office has remained silent on the matter, refusing to comment publicly as of Wednesday last week. However, sources familiar with the opinion say it will provide detailed reasoning and legal grounding for the anticipated conclusion that online fantasy contests constitute illegal gambling under current California law.

Fantasy sports industry reacts with alarm

The Coalition for Fantasy Sports - comprising platforms such as PrizePicks, Betr, Splash Sports, Underdog Fantasy, and Dabble - issued a statement calling the expected opinion 'devastating' for millions of Californians who have engaged in daily fantasy sports for over a decade.

"We hope the Attorney General's office will consider the views of sports fans across the state before making a decision," a coalition spokesperson said. "Californians have been playing daily fantasy sports games for more than a decade, and it is shocking to think that the state would suddenly take them away."

The platforms typically allow users to enter paid contests and compete for prizes based on the real-life performance of selected athletes - an activity that has long occupied a legal gray area in California.

Tribal leaders urge compliance with state law

Meanwhile, Bonta's pending opinion is being closely monitored by California's tribal gaming interests. On Monday, the Tribal Alliance of Sovereign Indian Nations and the California Nations of Indian Gaming Association urged lawmakers to withhold action on any proposed legislation regarding fantasy sports until the Attorney General's opinion is released.

James Siva, CNIGA Chairman, praised the anticipated move. "Illegal and unregulated gaming has been a problem in California for decades," Siva said in a statement. "These illegal practices deny consumers real protections and safeguards against illicit practices such as fraud and underage gambling. We are glad to see Attorney General Bonta address the issue and look forward to lawbreakers being held to account."

Years in the making: legal opinion rooted in longstanding concerns

The legal question of whether fantasy sports constitute a 'game of skill' or a 'game of chance' - the latter being generally illegal in the state without proper licensing - has simmered for years. In 2023, then-State Senator Scott Wilk requested clarity from the Department of Justice, stating that participants have no control over how athletes perform, which may render fantasy sports gambling under California law.

"Daily fantasy sports appears to be a game of chance not otherwise permitted by the laws of California," wrote Wilk in his request. After Wilk's term ended, Assemblyman Tom Lackey took up the cause, pushing for a legal opinion to clarify the issue.

Lackey said that while he hasn't seen the final opinion, he's been in contact with the DOJ to ensure public sentiment was acknowledged. "I was very interested in making sure that the people and their opinion was at least acknowledged," he said. "I think it's credible. I think it's important that (Bonta) is responding."

Legal showdown on the horizon

As California waits for Bonta's final determination, legal experts anticipate the issue may ultimately be settled in court. Chris Micheli, adjunct professor at McGeorge School of Law and lobbyist, said, "If there are any alleged activities that violate the law, we would expect a lawsuit to be filed by the attorney general. Ultimately, a court will decide if the AG's opinion is the right one, but courts in California give a fair amount of deference to the Attorney General."

Meanwhile, the potential crackdown is raising eyebrows among members of the public and media personalities alike. Carmichael Dave, a Sacramento-based radio host, questioned the logic of banning fantasy sports while allowing other forms of financial risk-taking. "Why can I bet on the latest crypto scheme or my life savings on stock apps," he asked, "but I can't bet on whether the Giants or the Niners or the Kings are going to win a ball game?"

The California DOJ is expected to release Bonta's legal opinion by July 3.

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What Types of Sports are Available in Daily Fantasy

There are lots of sports types offered in Daily Fantasy Sports. These games allow you to assemble teams, and you win or lose based on the performance and appearance of those players in real life. Traditional US and outdoor sports are organized for fantasy play, although native sports like Basketball are more popular in the country. The types of sports you can play daily fantasy sports in are:

Football (NFL)

Baseball (MLB)

Basketball (NBA)

College football

College basketball (NCAA)

Hockey (NHL)

Tennis (ATP)

Soccer

Rugby

Cricket

What are the Types of Daily Fantasy Sports Games

Guaranteed prize pool (GPP)

Here, the players set an entry fee for anyone who wants to join the game. Nobody can participate in it without paying the fixed standard fee. The good thing about this type of fantasy sport is that the game will run seamlessly if the contestants are complete. What's more is that irrespective of turnout or participation, the winners' prizes are guaranteed.

Cash fantasy games

This type of fantasy sports game is smaller than the guaranteed prize pool. Here, the team with the most points wins the prize. Players can either join an already-created league or make their own.

Head to head fantasy games

It positions two players against each other in contest mode. Think of it like a tournament semi-final or final. First, it is a straight knockout for the loser, and then, whoever comes out on top takes home all the prizes with the most points.

Fifty/fifty games

The game here is based on hierarchy, and the winners and losers are divided into halves based on the competition. The first 50% that did better got all the prizes. The bottom 50%, however, get nothing from the game.

Multipliers

The winners of this type of fantasy sports get a multiple of their stake if they win. In other words, if you win a game, your entry fee is multiplied by the agreed multiplier, and you're paid out. Depending on the game, this multiple is mostly 5x or 3x the entry fee.

Showdown fantasy games

As the name goes, there is a single showdown to determine the winner. Just one game is played, and whoever wins carries the day.

Leagues

It is like a tournament, only that it involves playing with fewer players.

Beat the score

Here, a score is set, probably by a previous win. The only way to win this type of DFS is to beat the previous score or the designated one.

Qualifiers and satellites fantasy games

In this type, winning aims to get prizes, but promotion to another game. It's like a ladder that helps you get closer to the prize.

How do You Play DFS?

Daily Fantasy Sports (DFS) is as easy as pie and doesn't call for any special skills. It's a game where you go head-to-head with other enthusiasts in a friendly competition. DFS can be a just-for-fun social game that doesn't cost a dime or offer any payout, or it can be a high-stakes game that's a stone's throw away from gambling, where you pony up some cash to enter and stand to win a payout if you come out on top. It's caught on like wildfire across the globe, and it's high time you learned how to play.

First off, you've got to sign up with a site that hosts DFS games. That's your ticket to the game.

Next, regardless of which DFS game you're playing, you've got to put together a virtual team. In most games, you're working with a pretend salary cap or budget that puts a leash on how you assemble your team. Once your team is set, your success hinges on the real-world performances of your chosen players.

When the dust settles after the match or game week, the points racked up by all your players are tallied. If your team's score is through the roof compared to your rivals, you'll be sitting pretty in the winner's circle.

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Can You Call Daily Fantasy Sports Gambling?

The classification of daily fantasy sports (DFS) as gambling is a subject of considerable debate. However, it's crucial to delve deeper into the inherent characteristics of DFS to understand why it's not typically categorized as gambling.

DFS is fundamentally a game of skill, not a game of chance or luck. Participants in DFS contests must employ a variety of skills to succeed. These include a deep understanding of the sport in question, the ability to analyze and interpret statistical data, and the strategic planning necessary to assemble a winning team within the constraints of a salary cap. This is a far cry from traditional gambling activities, which rely heavily on random outcomes.

Moreover, the legal definition of gambling often involves three elements: consideration (an entry fee), chance, and a prize. While DFS involves consideration and a prize, the element of chance is significantly reduced compared to traditional forms of gambling. This is because the outcome of a DFS contest is more influenced by the skill of the participants than by random chance.

In DFS, the participants have control over which players they choose for their team, and their success hinges on their ability to predict player performance based on their knowledge and analysis. This is in stark contrast to games of chance, where the outcome is largely or entirely dependent on luck.

Furthermore, the skill element in DFS is not a one-time factor but is consistent across multiple contests. Skilled DFS players consistently outperform less skilled players over time, further emphasizing the skill-based nature of DFS.

In conclusion, while DFS does involve an element of risk, as do many competitive endeavors, it is fundamentally a game of skill. The success of a participant is more dependent on their knowledge, analytical abilities, and strategic planning than on mere luck. Therefore, it's more accurate to view DFS as a skill-based competition rather than a game of chance or a form of gambling.

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Is Daily Fantasy Sports Legit?

Another question you may have concerns the legality of daily fantasy sports in America. One of the biggest problems people face when playing the game is wondering if it is a crime. The answer to the question depends on your state in America.

Many states in the USA have expressly made it legal to play on fantasy sports sites in their territory, while others have outlawed it. On the other hand, some have left it gray, not explicitly denouncing it while not allowing it.

However, most states in the USA allow it. Therefore, the chances that you're in a state that permits playing on DFS sites are much higher than otherwise. Hence, you can rest assured and check our list below to see if your state allows you to play daily fantasy sports.

What States are DFS Fames Legit and Illegal in the US?

As we said in the last paragraph, here you'll know some states that allow playing on DFS sites and those against it. So, read along to know what your state thinks about it.

The frontier states that uphold playing fantasy sports in their landscape, among others, are:

The states where DFS games are either prohibited or where major providers are not accessible include:

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Upcoming DFS Laws

The casino and sports betting progression in the US has not abandoned fantasy sports as a form of gambling. That's why it had to take legislative actions to make it legitimate in the state. At the turn of the 2010s, casino legalization became a heavy topic. And, around 2015 and 2016, states started legitimizing and regulating DFS around America. The glaring thing is that different states have taken different approaches to control DFS in their territories.

For some states, fantasy sports is just a game. Hence, they put only fair laws to guide their activity in the state. But on the other hand, some states consider it a form of gambling and regulate it just like a casino or sports betting site will be regulated. Either way, it is only a matter of time before playing on the best DFS site is legalized in American states.

FAQ

Is there a lot of money in DFS games?

The potential to earn money in daily fantasy sports (DFS) games varies greatly based on the type of games you participate in, the amount you're willing to invest, and your level of skill. Some players engage in large-scale tournaments, which often require substantial entry fees but offer the possibility of winning significant sums, sometimes reaching into the thousands or even millions of dollars. However, these tournaments are highly competitive and carry a high level of risk. To secure a portion of the prize pool, you must outperform hundreds or even thousands of other participants. On the other hand, you might choose to participate in cash games. These are smaller contests with more modest entry fees and more predictable payouts. While they're generally easier to win, the returns are also smaller. To consistently profit from these games, you'll need a sound strategy for managing your bankroll and a thorough understanding of the game. In essence, while there is the potential for substantial earnings in DFS games, achieving this is no simple task. Success in this highly competitive and unpredictable market requires a combination of strategic acumen, discipline, and a touch of good fortune.

Are DFS games and sports betting the same thing?

Considering the standpoint of many officials, sports betting is more of a skill-based game than luck. Most people also consider fantasy sports to be skill games. However, DFS is mostly considered different from sports betting in the US.

Are professional sports authorities in tune with DFS

Most sports league authorities in America consider fantasy sports betting a legitimate game mode. The National Basketball Association (NBA), National Hockey League (NHL), and Major League Baseball (MLB) have some stakes in DFS platforms in the country. Therefore, they consider it major as regards American sports. Taking this outside the US, the English Premier League, for instance, have its fantasy football site where they conduct fantasy sports, although it is more of social gaming than gambling.

Can the government tax DFS winnings?

Put plainly, yes! Daily fantasy sites winnings are taxable in most states where it is allowed. Hence, you can expect to get taxed on your DFS winnings.

Author: Travis Asherton

Updated: 1 week ago

Author: Travis Asherton

Editor | Sports Betting Expert

Updated: 1 week ago

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