Why Daily Fantasy Sports Is Gambling

This is family policy matter program is produced by the North Carolina family policy Council of profamily research unification organization dedicated to preserving the family and up from the studio here is John Rustin, Pres. North Carolina family policy Council joining us this week. Profamily policy matters.

It is our pleasure to have less burnout with us on the program is Executive Director of the stop predatory gambling foundation. He speaks and writes extensively about failed government policies that rely on predatory gambling views appeared on national television and radio including 60 Minutes, CNN, Fox News Channel and National Public Radio. He is also spoken before dozens of college audiences and faith groups across the nation.

Less is with us today to talk about a new report from stop predatory gambling entitled use promo code. Any quality inside online fantasy sports gambling in the misleading unfounded lobbying push for government regulation left like so much for being with us today on family policy matters actually invitation. Well, it's always great to have you on the program and were just so appreciative of the great work that you do and stop predatory gambling, no less. Many of our listeners are probably heard of fantasy football, baseball, or other similar fantasy sports leagues, but many may not be as familiar with daily fantasy sports explain if you would the differences between season-long fantasy sports games which some of our listeners may have participated in. In years past and the daily fantasy sports that we have seen increasing so rapidly in recent months, season-long fantasy sports started as a hobby was a form of community social activity. The trophy mattered more than the money today what you seen with the introduction of the so-called daily fantasy sports operators that fantasy sports has become a fleecing operation and it and it clearly incorporates the three major aspects of gambling which is consideration chance and prize consideration. When you put up something of value of money and so there's no debate. Without this is gambling the fee national casino operators like MGM that CEO appointed an ironic casino that there's no question this is gambling you have many of the people I founded these DFS companies is daily fantasy sports companies came over from the online poker Internet gambling world after was shut down in 2011 today to start a chance to finally pull mode and the law. The federal law and try to bring in extreme forms and another former extreme gambling and cloaking something else by calling it fantasy sports and making it sound inoculation advertising on television, and diversity of young kids play in the stuff now so it's been it's been a huge public ripoff and you're starting to see significant public leaders like that the New York Atty. Gen. has for an injunction into shut down the fan duel trafficking subject to the two biggest players. It is something that not on the surface people and how does it impact me impacts you in a major way because it is encouraging a major gambling ethic in our families and our communities were you people are being cheated and exploited in and in touch with kids because right susceptible to the stuff. Well I think it is. It seems to be one of these things that is become so insidious because there was an existing interest in these fantasy leagues. The people may build a team at the beginning of the league and do you, drafting of the players and to make up their teams and that sort of thing and follow their teams throughout the season, but this is one gambling because it really is something that happens on a rapidfire basis. It involves the components that you talk about that really are the classic definition of commercial gambling were the elements of chance for outweigh the potential elements of skill would you consider that to be the truth. Without question, and they know it.

The reason why you donate. They talk about this is such a dishonest way is because the business itself is dishonest right equipment when a practice is dishonest. The people promoted and spoke sponsor.

Talk about a dishonest machine that would state lotteries, and now we see that with this new form of of gambling framing is fantasy sports gambling, but it's really it's a form of Internet gambling listeners need to understand this is just really a bridge near the whole push for all so-called daily fantasy sports is going to bring in Internet gambling into every dorm room, every bedroom, every community in the country and they gonna do it to the back door as I can get Internet gambling legalized to Congress with her trying to do is bring in Internet gambling without calling Internet gambling just that of the real money in this business is not on this daily fantasy sports stuff is kept getting people to bet on more extreme forms of gambling and that in the wonder of the Internet. That's what you listeners with nebulizers is not a debate about fish sports is debate about Internet game is still the proverbial camel I know that you noted in the report that there really is a huge profit margin behind daily fantasy sports gambling talk about the little bit if you would use daily online fantasy sports gambling operators. They don't care who wins or loses, where they make their money is they get 10 to 15% of all the money wagered so they have a huge sweepstakes pool seen a little Sally can win $1 million in gonna put up your entry of the common crispies with really wager by reporting in your wager what they get is 10 to 50%, but off the top of all the money wagered and so you what you have is is a business model where you have worth 41% of these players do this full time they spend literally 12 to 14 hours a day crafting sophisticated algorithms and so forth.

To calculate the best players to select for their respective teams and they buy hundreds and hundreds of lineups in these games to the ref stack the odds in their favor to this 1% is reporting all this money and at roughly 90 to 95% is players are losing their money and in drafting and sandal it could care less about that scenario. They care about is getting a cut of the total amount wagered and that's what so it's so dishonest about this and that's why to legal and another stage right. State Atty. Gen.'s are taking action on shutdown was talking with one another to mention literally written for the benefit of our listeners talking more about the groups behind daily fantasy sports gambling's and while this is it is important for us to really understand it because these are about entities. These are folks who have a history of really targeting vulnerable populations through legal and sometimes illegal gambling operations what your listeners need to fully understand his is is online fantasy sports gambling operators. They're not the result of some citizens grassroots movement demanding Internet gambling or other smart phones in their bedrooms. This is being driven by very powerful financial interests protected regularly. Some of the big media media companies in our country like Comcast, which will jump NBC Time Warner Google capital, which is the investment arm of Google's media companies are behind this and they're making bulimic money on the advertising and you know a lot of the, the, the operators for this reflection.

Running these companies came from the illegal online poker companies or shut down in 2011 by the Department of Justice so you don't like being visited being driven by citizens demanding of chance this export in online gambling in her home since it's a huge ripoff and that's why you your every citizen where you will be a gambler, not like this impacts you know we need to continue are at our legislative leaders in our our law enforcement to take action to shut the scam artist and why is this such a great concern for the young adolescent population, were they particularly vulnerable to the lure of this type of gambling kids work is very unassuming so they'll optimize recognize when they're being exploited or when there was something it is not on the up and up so sick of kids starting the season-long fantasy sports thinking was intimate with their family or their friend at school would pick their favorite players. Now they being marketed. These online Internet gambling games is the form of daily fantasy sports which is best for preying on a whole generation of kids have been brought up on video games they play video games constantly being marketed and this is something we can pick your favorite athletes by like so you combine some of this.

This cultural of where they're addicted to video games that gets passed very passionate about sports and and then dish the excitement of winning money again up to what you are anything you when something freely.

It gets it gets excitement. People like that can also be addicting to this could get really attracted to it. The idea that we will allow them to be broadcast on national television for the last eight weeks throughout the season may be broadcasting over last year's open with that kind of intensity that we've seen over the last 8 to 8 weeks or so it just as appalling as unethical and and again time for thoughtful mom citizens out there who care about the direction of their state and their communities that the call for a shutdown of these operators does this activity currently violate federal law and if so how it what it there is no doubt that it mileage federal law.

That's why wishing that you did the New York US attorney. Investigation of this thus far and I think seem ultimately shut down the list in New York and other places to some major reform will come out of this after his investigation is done. There is no debate whether or not it's violated federal law when when when the Internet gambling prohibition passed in 2006 it keep claiming that there was carboxyl fantasy sports known could've comprehended what we see today with or without calling fantasy sport is not what the folks that carve out for in 2006. It didn't mean they allowed it and I was just saying that if any sports will be exempt from these from the so-called Internet gambling bed and I was when the other celebs also called season-long games or people had in my back in 2006. Federal law is pretty clear on this, both both from data from the 2006 large as well as the law back in 1992. There is a lot of riveting sports gambling and it because you can't not allowed to wager on player performance so that the reason why you haven't seen your other US attorneys jumping yet is because it is really a brand-new phenomenon using both in New York State using the US attorney there take action and Florida event doing that the US attorney there is doing a grand jury investigation. You're starting to see federal action now from various use attorneys but just for a little comprehension of what this is all about, because it cannot laconic them are nowhere and ended in its market is something that it's that's not well internally mushroomed in the supplement you talk about over the last several months and was completely unexpected but certainly not on plaintiff, and from the folks who are behind it now… Daily fantasy sports gambling becomes more popular, some have argued and we've seen this with sweepstakes gambling and other gambling activities here in North Carolina that the answer for Psalm is to regulated and taxes in order to allow the government to sponsor it and derive of revenue from why is government regulation or the legalization of online gambling which it would inevitably do, was not such a bad idea. Your listeners and North Carolina cars well versed in so-called regulated gambling at any state in the country right here your North Carolina lottery there God you have a casino not there in Western Carolina with the so-called Cherokee Casino which is operated by seizures you promised all these things that government gambling was supposed to do right on help fund education and do all these good things for the people North Carolina.

There hasn't been a bigger public policy failure in North Carolina last 25 years, I respectfully suggest you, then it is experiment with state lotteries. Okay it's like to hire inequality of opportunity in North Carolina as well as many other states, but know it hasn't hasn't encouraged us in of the subunits paying for education. It's been a gimmick in a budget gimmick where hasn't produced more money for education and it's extracted millions and millions of dollars from average North Carolina citizens putting them into deeper debt.

You know it's out so your listeners may be saying well you know I don't like the lottery, but it seems here to stay. I know it extracts the poor know why should I really care for all your listeners who don't play the lottery at all, which is good for them, they shouldn't. They should know that they pay even if they don't play by the enemy. You're paying for higher you're paying higher taxes and North Carolina for less services. As a result of that the North Carolina lottery benefaction around government revenues from gambling are very clear that over the long term budget problems get worse as a result of government gambling less unfortunate we are nearly out of town for this week that I want to give you an opportunity to let our listeners know where they can go to get a copy of this new report on the horns of daily fantasy sports betting again entitled use promo code inequality tell us where they can get that chair at our website and our home page of our website is stop predatory gambling.org great will make you less again. That website is www.stoppredatorygambling.org and without left Manila. Thank you so much for being with us on family policy matters for the great work that you're doing it stop predatory gambling.

We appreciate the partnership to work with you on these issues and are just so grateful for you. Thank you and thanks for the work you guys do really family policy matters. Information and analysis, future of the North Carolina family policy Council join us weekly for discussion on policy issues affecting the family. If you have questions or comments, please contact 919-807-0800 or visit our website and see family.org