Tennessee's attorney general has called fantasy sports contests illegal gambling.
Attorney General Herbert Slatery wrote a formal opinion that said fantasy sports betting violates state laws against gambling because participants pay an entry fee to win a prize and a portion of that fee goes to a pot where wins are paid out.
In fantasy sports, players assemble imaginary teams made up of professional sports figures. These virtual teams compete against each other based on how well the real professional players wind up performing in the real world.
The attorney general said that while participants may use skill to select players, the actual performance of many athletes is often left to chance by things like the weather, injuries, and referees.
Representative Craig Fitzhugh, a Democrat from Ripley, requested the opinion.
DraftKings, Inc., a skill-based fantasy sports game platform, released the following statement Wednesday in response to Attorney General Slatery’s advisory opinion:
"We have been and are in an active dialogue with elected officials to advance thoughtful and appropriate legislation that includes consumer protections to govern our skill-based contests and are encouraged by our progress to date in Tennessee. We call on all of our fans and Tennessee supporters to let their voices be heard in the coming days to show support for this legislation and protect their right to play the games they love.”
FanDuel also released a statement Wednesday:
"While we respectfully disagree with the opinion, the Attorney General expressly noted the legislature can make needed updates to antiquated state laws and ensure nearly one million Tennesseans can continue to enjoy all forms of fantasy sports — from any season-long leagues to daily play. A bill to protect fantasy sports and install important industry-wide consumer protections has already passed the state senate and legislators will be hearing from constituents from all across the state with a clear message: do not take away a game we love. We hope members of the legislature will listen to them, and act quickly to modernize state law and bring full clarity to the issue. Additionally, Tennessee has benefited from the economic boom fantasy sports has spurred, with new sports analytics companies like Rotogrinders and Footballguys headquartered in Tennessee. The state should be a home for this growing industry, but the legislature has to act to take advantage of this growing economic opportunity."
