ST. LOUIS (KMOX) – Legal or not? That’s the question many people – including federal investigators – are asking about fantasy sports-betting websites like FanDuel and DraftKings.
Sports and gaming attorney Daniel Wallach, a guest of John Hancock and Michael Kelley, says it depends on how one interprets federal and state law.
“The daily fantasy sports industry has maintained that their product is 100 percent legal because of a carve-out provided in a federal law known as the Unlawful Internet [Gambling] Enforcement Act of 2006,” Wallach says. “There’s a carve-out for fantasy sports.”
Both privately owned websites began as start-ups within the past decade, and are now worth over $1 billion apiece.
Wallach says the answer to who owns a piece of the action might be surprising.
“Most of their investment comes from venture capital, media companies and professional sports leagues,” he says. “The National Basketball Association, by way of example, owns a small piece of FanDuel.”
And NBC and ComCast were also early investors in the sites, which are now under federal investigation.
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