Player Pricing Mechanisms and the Daily Fantasy Sport Chance Versus Skill Debate

Differentiating and defining games of skill versus chance have major legal implications when classifying gambling, especially in relation to daily fantasy sports in the United States. This paper provides a theoretical discussion and introduces an empirical approach to analyzing game player pricing mechanisms. If game pricing mechanisms are fully efficient—player prices fully reflect the expected contributions from players—then that game is one of chance since there is no opportunity for skill to play a role in outcomes. This paper examines player prices from DraftKings’ daily fantasy football product. Empirical results show that there are strategies deriving from the pricing mechanism that can be incorporated by skilled participants to increase their expected performance and improve their chances of winning. This provides evidence that daily fantasy sports are skill-based—a necessary condition for skill to be a predominant factor in game outcomes as part of the legal debate.

Gamification through fantasy sports – Empirical findings from professional sport leagues

PurposeIn this paper, Fantasy Sports (Hereafter FS) is conceptually classified as a concept of gamification for professional sport leagues. From a sporting perspective, FS is often criticized because such online activities may be at the expense of physical activities. Otherwise, gamification can ultimately lead to economic advantages for sport leagues. To further empirically analyse this supposed juxtaposition, an empirical study is presented.Design/methodology/approachIn the empirical study, participation and non-participation in a sport league-related FS league are analysed and the study uses a divided sample (N = 319) for a one-factor Welch-ANOVA. FS effects on sport practice (engaging in doing sport) and usage (engaging with sport) of FS players as well as on gaining and retaining fans are investigated.FindingsResults demonstrate that participating in gamified FS experiences increases sport usage while not harming general sport practice. Furthermore, FS participation increases consumption capital as well as sport fans' loyalty and word of mouth (WOM) towards the league brand. Building on the results, league brands should foster gamified FS applications to retain their fan base and acquire new fans.Originality/valueThe authors’ theoretical contribution indicates the importance of FS as a gamified application and essential marketing tool for professional sport leagues. By introducing the terms sport practice and usage, the authors bridge the traditional logic of sport consumption with innovative approaches around engagement in and with sports. The results refute the prejudice that FS leads to less physical activity due to time substitution or displacement.

Daily fantasy sports and the law in the USA

This chapter examines legal, regulatory, and social issues surrounding the phenomenon of the daily fantasy sports (DFS) industry in the USA. Traditional fantasy sports contests largely involved groups of family or friends creating their own respective “fantasy” teams of real professional athletes, whose actual games results over the course of an entire season determined the success of one’s fantasy team. Fantasy sports contests were not considered gambling on sports, and federal legislation exempts “fantasy sports” from prohibitions against online gambling. As the name implied, DFS is a different product, offering users who pay the DFS operating company to select their team roster on a daily basis, competitions can occur over a day or a week depending on the contest, and among thousands of users, few of whom are consistent winners in the contests. The DFS commercials and advertisements are again blaring the airwaves. Major DFS operators are expanding their product lines and are now fully immersed in online, mobile, and casino sports gambling in states where legal. The DFS and sports gaming market is booming; the technology, analytics, user sophistication, financial stakes, and the distinction between DFS and gambling are increasingly blurred. This chapter considers the legal, regulatory, and social issues arising from the expanding DFS and sport gaming business.