The Legality Of Fantasy Sports

A recent federal court decision in New Jersey threw out a claim for funds recovery based on the losses of players who participated in fantasy sports competitions. It was an emphatic result that clarified the legal status of fantasy sports but raised interesting questions over whether similar arguments might fare better in other circumstances.

The legal status of fantasy sports has long been unclear, however most experts have tended to believe that it was not illegal. The Unlawful Internet Gambling Enforcement Act (UIGEA), passed as part of the Safe Harbor Port Security Bill in late October 2006, stated that fantasy sports games were exempt from prohibition as long as the following conditions were met:

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