Fantasy sports leagues are defined by the U. S. federal government as games of skill. Fantasy sports received specific exemption from the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA 2006). Because of this exemption, the paid contests SidePrize offers are completely legal.
Contests held through SidePrize are part of traditional, season-long fantasy sports games. These games require users to draft rosters of players to fit specific positions. Additionally, users must constantly decide who to bench, start, drop and pickup during free agency throughout the season.
The outcome of SidePrize’s contests are determined by the accumulated statistical performance of multiple selected players across multiple real-world events.
The 2006 Unlawful Internet Gambling Enforcement Act
The UIGEA defines “unlawful internet gambling” to mean “to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet.” The statute goes on to provide a definition of “Bet or Wager,” which specifically excludes participation in any “fantasy or simulation sports game,” provided that the following criteria are met:
- No fantasy or simulation team is based on the current membership of an actual team that is a member of an amateur or professional sports organization. SidePrize will reject challenges when a roster is compiled of players from a real-world team.
- All winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events.
- No winning outcome is based: (1) On the score, point spread, or any performance or performances of any single real world team or any combination of such teams; (2) Solely on any single performance of an individual athlete in any single real-world sporting or other event. SidePrize will reject challenges where all players are drawn from a single real-world sports event.
- All prizes and awards offered to winning participants are established and made known to the participants in advance of the game or contest and their value is not determined by the number of participants or the amount of any fees paid by participants.