The Gambling Machine's Transformation into Daily Fantasy Sports
The federal and state gaming laws that prohibit sports gambling are not taken kindly by the gambling machine. As Guattari predicts, the abstract assemblage is constantly in flux exploring new difference and virtual possibilities. As a result, much of sports gambling occurs illegally, in ungoverned space where the gambling machine can run rampant. According to a CNBC report, $80-90 million was bet legally through the Nevada Gaming Commission during March Madness in 2013. That’s a lot of money right? Wrong. That only represents 4% of the total amount wagered on March Madness with over $2.5 billion being wagered illegally. Each year, it is estimated that $60-70 billion is illegally wagered on college football, and $30-40 billion on MLB [1]. The NBA Commissioner Adam Silver, citing internal studies, concluded that across all sports there is over $400 billion in illegal betting annually [2]. As is evident by the abundance of sports gambling throughout the world, government regulation has yet to slow down the wrath of the gambling machine.
The newest assemblage to the gambling machine is in the form of Daily Fantasy Sports (DFSs). As society advanced into the internet era, the United States created a legislation to slow down the gambling machine from assembling on the internet. The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) attempted to shut down the internet assemblage of the machine. The UIGEA defines gambling as something where the outcome is the result of pure chance, and skill does not increase one’s odds of winning [3]. As a result, gambling’s most prominent internet assemblage at the time (internet poker) was deemed illegal. Out of the ash of poker, rose DFSs.
DFSs drew on much of the same consumer base and also captured additional market participants due to the plethora of illegal sports gambling. Better yet, this new part of the gambling machine was protected under the UIGEA! This is due to the fact that it is believed that DFS success is correlated with a higher level of skill and thus not gambling. If you are a John Oliver fan and/or want to see a satirical monologue on DFS's view on gambling, check out this video. Some legislatures disagree with this point and as of a few days ago, New York State won an initial lawsuit against DFSs sites causing a temporary shutdown in New York [4].
The loss for DFS v. Commonwealth of New York State is just another small hiccup for the gambling machine. As it has in the past, the gambling machine will transform and ascend anyone or thing trying to slow it down. DFSs are the current working arm for the assemblage. If they fail, it wont be long before a new arm emerges.