This is a sad, textbook example of how companies often use government power to destroy competition.
The American online gambling industry has been battling the powerful Las Vegas casinos for years to legalize online sports betting in each state. They are, historical A 2018 Supreme Court case struck down the Professional and Amateur Sports Protection Act, a federal ban on sports betting across the country.
Courts found the law to be a protectionist racket, and for better or worse, the floodgates opened for legalization of online sports betting in most states almost overnight. (Related: Stephen Moore: The left is coming for your cigar)
But now the kings of the hill in the world of online sports betting (led by FanDuel and DraftKings, the same companies that benefited enormously from the court's wise decision to deregulate) have announced the same flaws they claimed. It uses a certain legal logic. against To bet on popular sports fantasy leagues illegal.
Just like the brick-and-mortar casinos they have been fighting against for years, the Online Gambling Association is using its political muscle to try to eliminate this new competition.
They have good reason to be concerned.
The fastest growing sport in America in terms of participation and revenue is fantasy league sports. You can play while leaving your phone on the sofa.
Now there are some 50 million Americans Draft players (that's half the fun) and earn points based on how well your draft picks perform statistically (like scoring a touchdown) in games played on the actual field or court. and compete for prizes. Fantasy leagues are so popular that national television viewership for local games, as well as when local teams play, has increased dramatically.
Fantasy has spread to baseball, soccer, basketball (pro and college), and even the TV show “The Bachelor.”
Fantasy leagues have evolved from a weekend hobby at fraternity parties 20 years ago to huge profits and big business. Estimates vary about how much money is wagered each year because much of the revenue is not reported to the government. However, the Sports Management Degree Hub estimates that around $18 billion will be exchanged in 2022, up from less than $5 billion a decade ago.
Draft players can play for as low as $2 and as high as $5,000 in high stakes games.
The question is: Are fantasy sports leagues like roulette, a game of pure luck, or are players, like general managers, making smart drafting decisions to build “winning” teams? Is it a game that requires skill? sports betting alliance, Traditional online gaming company lobbying departmentrecently filed a complaint in Wyoming that Fantasy League “is a sports betting site operating under the guise of fantasy sports.”
They claim these are illegal, unlicensed and unregulated gambling establishments and should be shut down. The Wyoming Gaming Commission accepted this argument, and other states are considering similar measures under lobbying pressure.
The Wyoming ruling overturns nearly a century of precedent that federal and state law treats games of skill differently than games of chance. If the Gaming Commission (which understandably wants to regulate the industry as much as possible to expand its own powers) does not back down and the Sports Betting Alliance wins here, online fantasy leagues will Either you go out of business, or you go out of business. They become bogged down in a thicket of complex and costly government regulations.
Both of these options are what fantasy league contestants are looking for.
But what state gambling regulators can't determine is why there is a problem here that needs fixing. The general public was not affected. These leagues are immensely popular with his 50 million Americans. Could they all be wrong or am I going wrong here?
No, clearly, the only “victim” here is the gambling industry itself, acting like a mafia boss who opposes competitors encroaching on its monopoly. Instead of taking a tire iron to the perpetrator, they run to the courthouse for protection.
You can bet here. If FanDuel and his allies win with this tactic of stimulating competition against government regulators, the biggest losers will be the tens of millions of Americans hooked on fantasy his sport. .
To borrow a sports metaphor, the court should simply say, “No harm, no foul.”
Stephen Moore is the co-founder of the Unleash Prosperity Committee. He is an economist at FreedomWorks and serves as an economic advisor to the Trump campaign.
Copyright 2024 Creators.COM
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
