March 25, 2013
Loophole bets allow state to circumvent PASPA while awaiting court ruling
With its plans to legalize sports gambling held up in federal court, New Jersey is allowing casinos to offer daily fantasy games as an alternative.
The states Division of Gaming Enforcement has published regulations establishing standards for casinos to offer fantasy sports tournaments starting April 22. The casinos can charge patrons an entry fee and pay out winnings through the casino cage, but the activity is not considered gambling.
Fantasy sports tournaments are contests in which participants create and manage teams, made up of individual players from real teams, which compete against other fantasy teams based on statistics that players generate during real games.
It’s too early to tell how these fantasy games will affect sports book operators in Las Vegas.
“I’ve read the regulations and need to digest them to see what the opportunities look like,” said Joe Asher, CEO of Las Vegas-based William Hill U.S., which operates 160 sports books and kiosks statewide and is the risk manager for the Delaware lotterys parlay bets on National Football League games. “But obviously its a step in the right direction.”