Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: November 12, 2015
The Firm
201-896-4100 info@sh-law.comTheir most obvious appeal to fans is the lucrative cash prizes that they offer. In fact, FanDuel’s prize payouts should surpass $1 billion this year. Unfortunately, if you are a National Collegiate Athletic Association athlete, the opportunity to earn cash from the booming fantasy sports industry is enticing. More to the point, it also prohibited by the NCAA, even if it is legal.
In 2006, Congress passed a bill called the Unlawful Internet Gambling Act, which prohibits businesses from facilitating gambling via use of the Internet. For reasons best known to Congress, however, the law has a specific carve-out for daily fantasy sports that meet certain skill based requirements.
Undeterred by Congress’s approach, however, the NCAA has taken a different position. NCAA bylaws prohibit any form of gambling by coaches, athletes and staff members. In addition, the bylaws specifically oppose all forms of sports wagering by anyone. A letter sent by the NCAA to DraftKings and FanDuel last month stated that the daily fantasy sites undermine the integrity of sports contests and jeopardize the welfare of student-athletes. Last month, in Dallas, NCAA executive vice president of regulatory affairs Oliver Luck reminded college athletes and athletic directors that participating in fantasy leagues violates NCAA rules, could cause an athlete to sit out an entire season, and could permanently endanger NCAA eligibility.
College athletes do not seem fully aware of this. College football is booming in the daily fantasy sports market, growing at roughly the same rate as it is for NFL football. The opportunity to earn cash from one’s own performance in the virtual game must be tempting to an NCAA athlete. A survey conducted in 2013 by the NCAA reports that an estimated 20 percent of NCAA athletes admit to participating in fantasy sports leagues and that more than 80 percent said they didn’t realize that joining a paid fantasy league was an NCAA violation. As a result, the NCAA has asked FanDuel and DraftKings to stop offering fantasy games based on college sports. This includes a concerted effort to prohibit the airing of fantasy sports-based advertising during NCAA televised performances.
The NCAA is making an effort to move away from fantasy sports, especially fantasy leagues based on college athletics. Initially, the push back against fantasy sports operations was a state focus. Fantasy sports operations are specifically prohibited in Arizona, Iowa, Louisiana, Montana, Washington and now New York. In New Jersey lawmakers and professional sports leagues are currently butting heads about whether fantasy sports is a game of skill or chance. With the powerful NCAA defining fantasy sports as illegal gambling, operations such as FanDuel or DraftKings may have no choice but to stand down.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]
Author: Bryce S. Robins
Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]
Author: Dan Brecher
For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]
Author: Bryce S. Robins
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!