Why Are Fantasy Sports Not Legal in Every Province?
The biggest roadblock to the broader legalisation of fantasy sports is the interpretation of the game itself. For example, many state legislators across the US argue that there are elements of chance in DFS games, which can be considered gambling. In 2016, New York Attorney General Eric Schneiderman issued a cease-and-desist order to DraftKings and FanDuel, deeming their practice as illegal gambling.
In the meantime, the state has legalized traditional and DFS sports betting, but the situation can be used as an example of a wedge between legislation and DFS.
Luckily for Canadians, the Canadian Criminal Code clearly distinguishes between games of chance and skill. Generally, daily fantasy sports are taken as games of skill; hence, they are not considered gambling, and it’s up to provinces to enact laws that either ban or allow DFS sites, just like traditional betting platforms.
The Legal Landscape of Canada’s DFS
Considering that you create your own team and take into account different stats and situations, such as injuries, coaching styles, and many other pieces of information when building that team, it’s a clear signal that great skill is needed to be successful in DFS betting. In fact, the 2018 MIT study, based on win/loss records from thousands of different players over the years, demonstrated that fantasy football is a contest that rewards skill.
Overall, Canadian provinces have welcomed DFS sites. For example, Ontario is one of the provinces with the most advanced sports betting and DFS laws in the country, allowing daily fantasy sports sites access to the market provided they’ve been licensed by the Alcohol and Gaming Commission of Ontario (AGCO).
The licensing requirements include a $100,000 registration fee and a 25% tax on DFS revenue. However, the most restrictive aspect of the rules is that players from Ontario can only compete against each other, which diminishes the choice of contests and prizes.
Alberta, Quebec, and many other provinces impose no such limitations, thus fostering the impressive growth of the market.
Conclusion
Daily fantasy sports (DFS) has garnered significant attention in Canada, and it won’t be slowing down any time soon. Although Canadian law identifies DFS as skill-centric, provincial stances differ — like Ontario’s stringent rules compared to Alberta and Quebec’s more open approach.
For Canadian gamers, it prompts a reflection: In this evolving DFS landscape, are you well-informed of your province’s stance? Stay updated on regulations to ensure a smooth gaming experience.
