The US Attorney’s office in Tampa, Florida has reportedly convened a grand jury to investigate whether daily fantasy sports (DFS) operators are acting in violation of the Illegal Gambling Business Act (IGBA).
Gaming law attorney Daniel Wallach (@WALLACHLEGAL) broke the news late on Friday, the perfect capper to what is undeniably the single worst week in daily fantasy sports history. If you’ve just emerged from a coma and wondering why your favorite DFS operator is wearing tar and feathers, start here, then go here, here and here.
The IGBA defines an illegal gambling business as one that is operating in violation of a state law and Wallach has written extensively on the quirk in Florida law that could prove dangerous for DFS operators, who have long argued that their product isn’t gambling due to its reliance on skill.
Florida law prohibits wagering on “the result of any trial or contest of skill, speed or power or endurance of human or beast.” The prohibition applies equally to bettors and those who facilitate such wagers, including operators, financial institutions and those who “aid, assist or abet in any manner” this activity.