The Problem:
Online gambling is illegal. But right or wrong, people want to gamble. Fantasy sports are legal. The line between the two is not totally clear.
The Business
PitchersOnly.com
If you want to wager on baseball, you cannot. However, you may wager on fantasy sports. (Yes, you may bet on fantasy sports – even daily fantasy sports – and it’s completely legal.)
There is nothing to say you couldn’t simply wager on the fantasy statistics of pitchers only. You can’t get quite to actually wagering on the game, but you can certain get very close. If you work in fantasy sports, especially daily fantasy sports, you understand what I’m talking about.
Doableness
Daily fantasy sports is itself a subset of fantasy sports. Something like “pitchers only” would be even a further subset. That doesn’t mean it can’t be a very legitimate business. It can.
The UIGEA made many things possible. In enforcing a ban on online gambling, it permitted online horse race wagering, online lotteries, and online fantasy sports. Creative entrepreneurs have looked at the legislation with a fine tooth comb and created daily fantasy sports. What used to be a game that lasted a season can now last an evening.
For more information on the applicable UIGEA language, see my page answering, “Is Daily Fantasy Baseball Legal?”
My Thoughts
Legislation is an interesting thing. It has all kinds of unintended consequences. In this case, it created an entire new industry – daily fantasy sports. I don’t think anyone is completely sure where the industry eventually goes. One thing is for certain – new business models will be tried. Anything the UIGEA makes legal may be a business opportunity. For example, “multiple” real life games are necessary to fall within the definition of fantasy sports from a UIGEA standpoint. This means some daily fantasy football is not permitted. (Think Thursday or Sunday night.) However, weekly fantasy football is legal under the new language.
Another lesson that can never be learned enough. Those who have the power control the law. There is no way the NFL or MLB were going to let the UIGEA get passed without a fantasy sports exception. There was simply too much at stake.