Kansas Takes Steps To Outlaw Fantasy Football: Bad News For Yahoo!, CBS, And The NFL

[journeyscarab]

http://www.forbes.com/sites/marcedelman/2014/08/25/kansas-takes-steps-to-outlaw-fantasy-football-bad-news-for-yahoo-cbs-and-the-nfl/

Earlier this month, Yahoo, CBS, ESPN, and the NFL all launched pay-to-enter fantasy football contests that allowed Kansas residents to win prizes. Pretty soon, each of these leading fantasy football providers may find themselves “not in Kansas anymore.”

Last week, the Kansas Gaming & Racing Commission updated its Frequently Asked Questions about the legality of fantasy sports. The new language on this topic states that “[i]f a fantasy sports league has a buy-in (no matter what it is called) … and gives a prize, then all three elements of an illegal lottery are satisfied.”

The Kansas Gaming & Racing Commission’s new language seems to place the pay-to-enter fantasy football games hosted by Yahoo, CBS, ESPN and even the NFL itself on the wrong side of the line.

The Kansas Gaming & Racing Commission has expressed its concerns about fantasy football before. As recently as 30 months ago, the Kansas Gaming & Racing Commission’s website included language proclaiming that most fantasy sports contests were illegal. However, the Commission removed this language from its website in time for the 2012 fantasy football season. The language did not reappear until very recently.

Kansas currently stands as one of up to 13 states with an elevated risk of operating fantasy football contests. Nevertheless, many of the largest fantasy sports providers believe the risk is manageable and choose to operate in some of these states.

CBS, FanDuel, and DraftKings currently block participants in only five states: Arizona; Louisiana; Iowa; Montana and Washington. Meanwhile, Yahoo! prevents entrants in just six (the same five, plus Vermont).

The NFL currently operates fantasy football contests in Kansas that may violate state law (Photo credit: Wikipedia)

By contrast, many of the newer and less well-known fantasy sports websites do a far better job of hedging for the legal risk in all 13 states. Even before this new language appeared on the Kansas Gaming & Racing Commission website, several fantasy sports start-up websites listed Kansas among the impermissible states in their terms of service. Meanwhile, the Chief Operating Officer of Star Fantasy Leagues recently expressed an intent to begin blocking entrants in Kansas.

It is somewhat surprising that the larger companies in the fantasy football marketplace are not behaving in a more risk adverse manner to state gaming law. But it will be interesting to see how quickly Yahoo, CBS, and ESPN respond to the new Kansas Gaming & Racing Commission language about fantasy sports.

It will be interesting to watch how the NFL responds, given the league’s longstanding position that it staunchly opposes all forms of illegal sports gambling.

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Marc Edelman is an Associate Professor of Law at the City University of New York’s Baruch College, Zicklin School of Business, where he has published more than 25 law review articles on sports law matters, including “A Short Treatise on Fantasy Sports and the Law.” He also consults for companies in the sports, online gaming, and social media industries. Nothing contained in this article should be construed as legal advice.



Uh this seems a little short-sighted on the part of the Gaming Commission.

[Bowser]

LMAO, good lord.

Kansas, fucking shit up since....forever.

[wazu]

Kansans. Such a backwards people.

[BWillie]

You should see what they do to ppl that play poker. They tax them on how much they win. They could lose 1million in a year, but if they have 2 of 100 sessions where they win 100k, they are taxed on the 100k.

[Deberg_1990]

Well, they are not wrong. It is an illegal lottery if money is involved.

[Stewie]

You should see what they do to ppl that play poker. They tax them on how much they win. They could lose 1million in a year, but if they have 2 of 100 sessions where they win 100k, they are taxed on the 100k.

Just taking a page out of the IRS tax code. The Federal gov't pulls shit like this all the time, but unless you're affected no one cares.

[Big Poppa Payne]

Kansas only has $13.74 in their bank account so if they can find a way to tax it then I'm sure they will be fine with it.

[Pasta Little Brioni]

Kansas....can't win at football pretend the game doesn't exist.

[Stewie]

There's more to this than Kansas. There are 13 states with reservations and the NFL itself has concerns.

[Old Dog]

Non-issue to me. None of my money leagues have buy-ins that are paid to a site.

[GloucesterChief]

Don Fanucci The Government just wants to wet its beak.

[bdj23]

I was wondering how long it would take before these sites were outlawed.

[a pp roach]

This is some subliminal gay bashing by Kansas (surprise!). They clearly do not like grown men having fantasies about footballers. How intolerant of them.

[Hydrae]

Well, they are not wrong. It is an illegal lottery if money is involved.

I have to wonder about that. It is not a game of chance really since you get to select your players, etc. The scoring is not random, JC will certainly score more points than Knile this year so the ability to pick JC in your draft indicates skill as well. I would think a lottery is pure chance on which balls hit. You can choose your numbers but they all have the same 'value' and expectation of winning.

[bdj23]

I have to wonder about that. It is not a game of chance really since you get to select your players, etc. The scoring is not random, JC will certainly score more points than Knile this year so the ability to pick JC in your draft indicates skill as well. I would think a lottery is pure chance on which balls hit. You can choose your numbers but they all have the same 'value' and expectation of winning.

Scorcer!!!

This state is ran by idiots.

[Psyko Tek]

Kansans. Such a backwards people.

Why, the fuck , did Dorothy want to go back there?

[kcjayhawks5]

:usa:

[cosmo20002]

So...what step did Kansas take to outlaw fantasy football?
Because it looks like none.

If any entry fee is involved it probably is "illegal" in Kansas and everywhere else. It's really not different than betting on anything else.

I wouldn't be too worried about going to jail though.

[BigRedChief]

LMAO, good lord.

Kansas, fucking shit up since....forever.more so since the Tea Party took over.

[wazu]

So...what step did Kansas take to outlaw fantasy football?
Because it looks like none.

If any entry fee is involved it probably is "illegal" in Kansas and everywhere else. It's really not different than betting on anything else.

I wouldn't be too worried about going to jail though.

Changed the official language on their website to clarify that fantasy football is completely illegal. Which means somebody cares about it.

[bowener]

Sadly, I now live in this ass backwards state CHALK full of slack jawed mental rejects that elect politicians like Brownback.

[Hootie]

if I want to fucking gamble with my hard earned money, I'm going to fucking gamble

go fuck yourselves, anyone who tells me what I can and what I cannot do with my money

[BWillie]

Just taking a page out of the IRS tax code. The Federal gov't pulls shit like this all the time, but unless you're affected no one cares.

Difference is even if you file as a professional in Kansas, still taxed the same. Other states you can file as a professional and not get the shaft

[BWillie]

So...what step did Kansas take to outlaw fantasy football?
Because it looks like none.

If any entry fee is involved it probably is "illegal" in Kansas and everywhere else. It's really not different than betting on anything else.

I wouldn't be too worried about going to jail though.

Well, actually in many states, online blackjack, poker, etc is outlawed, and fantasy football for a fee is not. Draft Kings and other sites are operating legally in a bunch of states to this day. To me, it shouldn't be a double standard.

[BWillie]

Kansas only has $13.74 in their bank account so if they can find a way to tax it then I'm sure they will be fine with it.

Guess again. Compared to most state economies Kansas is doing more than fine.

http://www.alec.org/publications/rich-states-poor-states/

Oh look at that, what do you know, those massive liberal states of California, New York, and Illinois all at the bottom. Wow wonder why?

[TomBarndtsTwin]

The State of Kansas . . . . . . . . where football goes to die . . . in ALL forms.

[007]

Hell no fantasy football would improve the NFL

[cosmo20002]

Well, actually in many states, online blackjack, poker, etc is outlawed, and fantasy football for a fee is not. Draft Kings and other sites are operating legally in a bunch of states to this day. To me, it shouldn't be a double standard.

Are Draft Kings and other FF truly operating "legally" in a bunch of states or are states simply looking the other way, not wanting to dedicate resources to a simple and popular activity that doesn't really affect more serious crime?

[Earthling]

I remember in the late 60's Kansas banned commercial airlines from serving drinks if they were flying above the state boundaries. LMAO

[BWillie]

I remember in the late 60's Kansas banned commercial airlines from serving drinks if they were flying above the state boundaries. LMAO

Im still in awe that so many states including Kansas limit not only where you can buy hard alcohol, but what time of the day you can buy it. I mean who gives a shit.

[Kman34]

Kansas Gaming & Racing Commission ,,,,,Hmmmmm, I bet more than one person on that Commission is in a keeper league..:hmmm:

[Predarat]

Wow how horrible. Stupid ass law. Next thing you know they will ban PIIHB.

[htismaqe]

Wow how horrible. Stupid ass law. Next thing you know they will ban PIIHB.

Pretty sure that's been illegal in KS for 150 years. :D

[jspchief]

Completely misleading title.

They didn't outlaw fantasy football.

[Bambi]

Well it's no Ferguson but we have have our problems I suppose.

[Old Dog]

Completely misleading title.

They didn't outlaw fantasy football.

Shhhhh, they're on a roll. Don't confuse them with facts.

[Reerun_KC]

Hell no fantasy football would improve the NFL

THIS!

[Fish]

http://i60.tinypic.com/2w2o1w0.jpg

[notorious]

So...what step did Kansas take to outlaw fantasy football?
Because it looks like none.

If any entry fee is involved it probably is "illegal" in Kansas and everywhere else. It's really not different than betting on anything else.

I wouldn't be too worried about going to jail though.


It's like being worried about the cops breaking down the door because you and your buddies are playing Texas Hold Em'

[WilliamTheIrish]

I remember in the late 60's Kansas banned commercial airlines from serving drinks if they were flying above the state boundaries. LMAO

That was the former Sedgewick County Sheriff, elected to AG, Vern Miller. He also was famous for leaping out of car trunks during undercover busts for weed. Not kidding.

there used to be this HUGE party thrown on the campus of KU called The Big Eat. And for a few bucks you could eat and drink and find weed and acid. It was incredible. Those were the days... LMAO

Vern Miller did not like The Big Eat.

[WilliamTheIrish]

2/26/71 / Lawrence Journal-World / Jerry Schwartz

Miller Leads Drug Raids

Vern Miller had promised to land in Lawrence with both feet. Early this morning, he did. Leading a battalion love 154 law enforcement officers, Miller, the new Kansas Attorney General, swept into Lawrence arresting thirty young persons on various drug charges. The defendants ranged in age from 16 to 24 and the charges against them were for sale or possession of narcotics, including LSD, cocaine, hashish and marijuana. The arrest began at 2:30 a.m. with 22 nearly simultaneous raids by seven man teams of law enforcement officers. There was no violence: nobody was hurt. No "hardware," such as explosives or heavy firearms was discovered or confiscated with the exception of one 22 caliber rifle that the owner had used for normal hunting activities, according to officers.
Lawrence Police, members of the Douglas County Sheriff's Department, Topeka police, men from the Shawnee and Sedgwick County sheriff's departments and members of the Kansas Bureau of Investigation as well as A.G. Miller's agents were all in on the raid. The action began shortly after midnight at the National Guard Armory in Topeka where nearly 200 officers and news media representatives gathered for a briefing. By 2 a.m., the men had organized into 22 teams of seven men each, containing a KBI officer as the commander and at least one Lawrence policeman as a guide. They were given arrest and search warrants and each team was assigned a specific address. Miller cautioned the teams that the raid was to be conducted in a firm and businesslike manner and added, "we aren't out to harass anybody."

He did it all without SWAT teams.

Each of the 22 teams took two cars from the Topeka staging area to Lawrence. Here, the group broke into the teams and headed for various parts of town. Miller's first stop was an apartment complex at 1123 Indiana. Two apartments were raided there and several arrests were made. Among other items, a syringe was found in one apartment. Miller helped in the arrest and in the search of the apartment that followed. When the search concluded, Miller leaped into his car and went to 1309 Ohio. On the top floor of that building another raid was in progress. One man was in custody and law enforcement agents were cataloging evidence and taking photographs. Miller, with a team of news media representatives trailing, then sped across town to 818 New York. At this location, officers uncovered a real plum -- a suitcase containing substantial amounts of a substance that appeared to be marijuana. Three arrests were made at that location. Mark Shepard, 20 who lives in the house, sat on the sofa while officers poured (to be continued)

[ModSocks]

As if people needed more reasons to believe Kansas is dull and boring.

[WilliamTheIrish]

I remember in the late 60's Kansas banned commercial airlines from serving drinks if they were flying above the state boundaries. LMAO

Vern Miller would actually stop Amtrack trains and check if they were serving liquor as they passed through the state.

[duncan_idaho]

As if people needed more reasons to believe Kansas is a backwards, out-of-touch wasteland.

FYP

[WilliamTheIrish]

FYP

LMAO As if Missouri is some Mecca of Merica.

I miss Frazod.

[cosmo20002]

Completely misleading title.

They didn't outlaw fantasy football.

They "took steps" to outlaw it.

Well, they really didn't do that either.