DraftKings is a website that allows users to enter into daily and weekly fantasy sports contests from all over the world.
There are rumors that they are entertaining the idea of expanding into China and covering Chinese sports for fantasy leagues.
But it’s really not that surprising.
China has done well with network marketing companies before, so this would be right up their alley.
Who are the Draft Kings?
Since 2012 the company is considered to be a very populous online fantasy destinations for many people and it claims that everything it offers is 100% legal, which aiming in providing online users with short term fantasy contests, like football, when compared to other seasonal leagues. More specifically, the site allows the users of draft kings to bet real money on their teams.
Even though it’s a successful website, just a few months ago the company was reported last April to have raise $250 million at a $900 million valuation in late March. This led many people wondering if sports betting online is a legal act.
But fantasy sport is considered to be “a game of skills”, according to the federal law. How can in fact this be possible, when gambling in not legal in some States in America, like Nevada and Oregon?
Legal Online Gaming. Play. Team Up. Win.
People across the United States of America are gambling on sports every day, but illegally. In 2006 the government passed a federal law that established these kind of online games as legal ones.
In fantasy sports, users make their own teams based on real life players. The outcome of the game is determined by the way a specific player performs in a certain play and the points he gets in a real game.
So, unlike some other sports online gambling, where people bet on the result of specific games, the law states that fantasy games is a form of game, where actual skills are taking into consideration in order for someone to win by betting. More specifically, while online casino games, such as poker, are considered to be games of luck, on the other hand, fantasy online sports, including daily fantasy, are declared as games of skill.
Therefore, this distinction is what makes fantasy sports legal, while at the same time online casino games, as well as other online lotters are not considered to be legal by the federal law. Furthermore, the law that declared fantasy sports (like draft kings) as legal was first introduced in 1999 and the last action on it took place in 2006. Thus, under the current laws in the United States, the fantasy sports are considered legal and will continue to flourish more day by day, racking up millions of dollars in revenue.
It’s true that online fantasy sports sites promise big rewards for their players. For example, Draft Kings said it would come out with more than $1 billion in winnings this years. While there are many ways to play, the basic idea if that fans of draft players onto their virtual teams and the enjoy by seeing whose team performs the best, which comes away with cash.
In addition, online fantasy sports companies, as draft kings, highlight the idea that players aren’t gambling in the sense of placing bets on random events, like roulette for example.
Instead, they are engaged in different kind of contests, that -theoretically of course- incorporate skills and knowledge, as well as attention to detail.
Will China allow such a thing? I guess time will tell.