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Boxing and MMA Fine Line After Nevada: Is Fantasy Sports Betting Gambling or Not?

By Robert Brizel, Head Real Combat Media Boxing Correspondent

The following editorial is the view of the author and not Real Combat Media

The professional sports of boxing and Mixed Martial Arts, like other sports, are within the realm of fantasy sports. In recent days, the question of whether or not fantasy sports and fantasy sports betting constitutes a game of chance or sports betting has been heavily weighed by the Federal Bureau of investigation, State Gaming Commissions and state Athletic Commissions.

Fantasy sports betting fits so far into a categorical no-man’s land of money of gamblers. If the whole idea is hypothetical, how then can it be considered to be gambling for real? The New York Times and other media outlets broke the story yesterday afternoon that Nevada regulators now consider fantasy sports to be casino gambling. The declaration means Nevada has declared fantasy sports games of chance, not games of skill. I disagree with this argument.

It does mean groups like DraftKings and FanDuel will be forced to obtain a gaming license from Nevada. If this holds, other states may follow suit until these and similar companies and their employees obtain up-to-date gaming licenses.

Much ado has been made about ‘insider information’ in fantasy sports groups. This terminology is being incorrectly applied. Inside information in fantasy sports is not the same as insider trading in the stock market. Collusion between employees of DraftKings and FanDuel has cost both sides heavy money from betting earnings. However, such information can hardly be considered a keen advantage. Nobody knows in reality how an actual sporting event will turn out.

Daily fantasy is not gambling, and as such, the Nevada Gaming Commission will most certainly be challenged in court. How can fantasy sports be fantasy in one state, and sports betting gambling in another? DraftKings and FanDuel are each worth more than one billion dollars. They are exempt from the unlawful Internet Gambling Enforcement Act of 2006. The act outlaws online poker and sports betting. Including Nevada, five states now prohibit them from conducting business.

Fantasy or not, sports fans like to risk money on fantasy sports possibilities. Nevada might have just chased substantial business away and devalued its properties even further with this sudden decision. Major sports leagues are investing in fantasy sports, which represent mega sponsorship and a monster following of viewers. Fantasy sports either are fantasy, or they are not, but it cannot be both. That’s reality from a current sports perspective. Nevada has made, in this reporter’s view, a major mistake by going against fantasy sports.

The end result is playing daily fantasy sports will probably need to have a Federal definition which will supersede the contradicting view the states have. If fantasy sports finds a major home in the United States and the Americas, and it is well on its way, Nevada, where casino gaming and proper values are on the downslide, might well have signed its old death warrant.

Fantasy sports will remain in a no-man’s land until it is properly regulated and defined. Nevada may have thrown away billions of dollars in revenue it desperately needs in the face of heavy gaming competition from other states. Look for some of the 45 states which allow fantasy sports betting to welcome it on a higher level, and all Nevada will prove is how much money it will have lost. Boxing and MMA, like other major sports, are as much a part of fantasy sports as they are in reality. Guess who wins? That’s part of the fun. Is such a guess skill or chance? It depends on what methodology, in this reporter’s view, a bettor uses in determining a fantasy sports outcome.

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