Millions of Americans play and join in on fantasy football leagues each year, yet few have thought about whether the practice is legal under gambling laws.
Is Fantasy Football Illegal?
Although fantasy football looks suspiciously like gambling, the Unlawful Internet Gambling and Enforcement Act of 2006 carves out a spot for legal fantasy football contests as they involve an element of skill. Where things get confusing is where federal law clashes with state laws, and where leagues may involve higher stakes and outcomes rely more on chance.
It depends, mostly on whether the game involves any element of “chance,” the precise definition of which depends on the state. Entry fees and prizes are illegal in “chance states.” Usually states only ban play-for-cash contests involving more chance than skill. In a few other states, however, fantasy football contests are illegal when results are based even slightly on chance (accounting for weather or injuries, for instance).
Where Is Fantasy Football Allowed?
Beyond those states, others may view fantasy football contests as illegal for other reasons. However, states like Florida and Kansas have had cases calling the legality of fantasy football into doubt, yet haven’t challenged CBS or Yahoo gamers legally.
Certain formats of fantasy football are somewhat risky under state and federal law. Some unusual formats of fantasy football (such as shorter-season contests or small-roster leagues, which allow for just one game with a mishap to cause a less-than-likely outcome) pose a more risky skill-to-chance ratio that typical leagues and may therefore be illegal.
The federal Unlawful Internet Gambling Enforcement Act of 2006 protects fantasy football leagues, although players must report their winnings to the IRS. According to Yahoo! Fantasy, participants can not be residents of Arizona, Iowa, Louisiana, Montana, Vermont, or Washington. Participants must also be 18 and over the age of majority in their primary state of residence.
