Fantasy Online Sports Betting Exempted By UIGEA

Published Wednesday, December 02, 2015 -
Fantasy Online Sports Betting Exempted By UIGEA

A controversial and not as yet really settled issue is the legality of Fantasy Sports betting in the USA. The law on gambling in the States is what governs the license to print money sort of speak in a manner that is fair to all.

The interpretation of gambling on sports over the internet seems to be pushing some political buttons in certain jurisdictions. Politicians are reliant on their lawyers and in some cases they are lawyers to make rules to keep gambling under the watchful eye of government and in so doing are constantly changing laws to keep up with the times.

Various positions are held in America regarding the legality of making wagers over the internet. The first law, the Federal Wire Act of 1961, prohibits citizens from utilizing, “wire communication facilities” for the interstate transmission of bets or wagers or information that in any way helps the placing of bets and wagers “on any sporting event or contest.”  The Justice Department has interpreted,  “wire communication facilities” to include the internet.

The second law that is quoted and is claimed to be valid to discredit the legality of Fantasy Sports betting is the Professional and Amateur Sports Protection Act of 1992 (PASPA), which says, in short, that it is unlawful for anyone to bet or organize betting on events connected with amateur or professional athletes participation.

The Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), is the third law which prohibits the transmission or acceptance of funds in connection with “unlawful” online gambling activities. This law specifically exempts fantasy sports gambling so long as participants stick to the preset guidelines.

Of the three basic arguments quoted to be law only the last one the UIGEA is valid leaving no doubt that fantasy sports betting is legal in America.  In the rules of statutory interpretation, lex specialis derogat generali, states that the more specific law prevails over the more general one plus the more recent or “younger” of two conflicting statutes governs.






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