With all the discussion heating up regarding the legalizing of online gambling, most investors have probably missed that skill based gambling is already legal in most states. Betting on fantasy sports and other skilled based games is legal in nearly all states and has a preferential carve-out on the Federal level under the Unlawful Internet Gambling Enforcement Act of 2006. According to Forbes contributor Marc Edelman, daily fantasy sports are insulated from federal liability if it meets three conditions as follows:
- The value of the prizes is not determined by the number of participants.
- All winning outcomes reflect the relative knowledge and skill of participants.
- No winning outcome is based on the outcome of the score of games or the single performance of an individual athlete in a single, real-world event.
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