Online Fantasy Sports

Key Points

• As of 2023, Daily Fantasy Sports (DFS) are legal to play in 45 US states.
• In most states, players must be at least 18 years old to participate in games for money.
• Players aged 13+ may participate in free leagues, depending on the state and site's regulations.
• FanDuel and DraftKings are two major providers of DFS contests.
• Football, baseball and basketball remain the most popularly played Fantasy Sports across the US.

What is Fantasy Sports?

Fantasy sports is an online sports game in which you assemble a virtual team of real-life sports players. Gamers win or lose based on how these players perform in real-life sports events. Each sports player is awarded points based on their real-life performance.

This means top-scoring or winning players or athletes will have more points than the average player. For example, leading NBA players like Stephen Curry and LeBron James will have high points in fantasy sports games.

Some of the major sports leagues in fantasy sports include:

In fantasy sports, you act as the manager and can select players from different teams. The main objective is to select players with high points. The higher the total points, the better your chances are of winning fantasy sports contests.

Besides selecting players, you can also compete with other teams in fantasy sports tournaments or daily events.

Fantasy sports sites use a specific set of metrics to calculate points in each sport. For instance, baseball players are awarded points based on these metrics:

• Baseball box score
• Batting average
• Earned run average (ERA)
• Hits
• RBIs
• Strikeouts

Is Daily Fantasy Sports Legal in the US?

Yes, daily fantasy sports (DFS) games are legal in the US. Under the Unlawful Internet Gambling Enforcement Act (UIGEA), it is not illegal to participate in daily fantasy sports. Statutes in most states interpret daily Fantasy Sports as a game of skill since you need tactical knowledge to assemble virtual teams.

However, some DFS models are classified as illegal under the UIGEA. These illegal models include fantasy sports games where:

• The fantasy team that is based on the current members of a real-life team;
• The winning outcome is not determined by the accumulated statistical performance of all athletes on a team.
• The winning outcome is based on the point spread or score of a real-life team.
• The winning outcome is solely dependent on the performance of a single athlete in a real-life sports event.
• The prize money is not advertised to players before the start of a game.

Not all U.S. states approve of daily fantasy sports. It is illegal to gamble on DFS sites in Washington, Hawaii, Idaho, Nevada, and Montana. Furthermore, DFS laws are still in the gray area in some states.

U.S. states are also responsible for setting the age limit for accessing DFS and FS. You must be at least 18 years old to play in paid leagues. On the other hand, some sites allow 13-year-olds and older to play in free leagues.

ESPN, one of the major providers of DFS contests, provides access to registered members who are at least 16 years old.

How Do You Play Fantasy Sports?

Fantasy sports games are easy to play. Almost anyone can sign up for an online game. While the rules generally vary, the following is a broad step-by-step guide to playing fantasy sports in the U.S.

1. Sign up for a U.S. fantasy sports site.

2. Choose a sports league based on your commitment level and experience.

3. Next, create your team roster and choose a scoring style. You may choose to accumulate points on additional stats like yardage, reception, and strikeouts.

4. Choose your players in a draft. Most fantasy sports sites feature a selection board where players can view a player's current stats.

5. Create a cheat sheet filled with the names of possible players for a position. Besides choosing top players, keep your attention on rookies with high potential. Go for rookies selected in the first draft picks by major teams.

6. You can also trade in some players to bring in better-performing ones.

7. Arrange your roster by choosing the "starters" and "benchers." Most fantasy sites set a deadline for this step. So, ensure you submit your roster before the deadline.

8. Watch real-life games to watch your players' performances. An injury or penalty can reduce your overall points.

9. Select a league in line with your interests and participate in cash games or tournaments.

What is DFS Gambling?

DFS gambling is the fast-paced version of conventional fantasy sports games. In DFS gambling, tournaments and contests take place every day or week. Players no longer need to wait for a championship or league to finish. Now, they can play their virtual teams against other players in daily online sports events or contests.

FanDuel and DraftKings are the two biggest providers of daily fantasy sports in the United States. These sites offer the best DFS selections and rewards. You'll find the following types of DFS on these sites:

• Guaranteed Prize Pools
• Cash games
• 50/50
• Head-to-Head
• Parlay and prediction fantasy sports.

Guaranteed Prize Pools are daily fantasy sports contests in which players compete for a portion of the prize pool. Players must pay an entry fee to access the prize pool. Furthermore, they get to share the prize money if they win the contest. Some players may enter multiple times to increase their share.

Gamers can also find daily cash games on DFS sites. Only the best teams are rewarded in the DFS cash games. Also, the rewards are much smaller than in guaranteed prize pools

Two players compete for the prize pool in a head-to-head DFS contest. Furthermore, the winner takes all the prize money.

Do you have to Pay Taxes on Fantasy Sports Winnings?

Yes. The IRS taxes all income, including fantasy sports winnings. You must report the gambling income as "other income" under the Schedule 1 section of Form 1040. On the other hand, you may list the winnings as "business income" under Schedule C. Keep in mind that you can't deduct your losses or expenses under Schedule I. You can claim all of your losses and costs from playing fantasy sports on Schedule C.

Note: The IRS will classify your winnings as business income under the following circumstances:

• If it earns a profit three times in the last five years.
• You frequently participate in daily fantasy games and contests.

How many States is DFS Legal in?

As of 2023, DFS is legal in 45 US states. However, only Maryland and Kansas State have regulatory laws on fantasy sports. Most states are either pushing to fully legalize it or have passed bills supporting it.

Which US States have DFS?

Daily fantasy sports games are legal in most US states. As of 2023, you will find DFS sites in the following states.

Which States Do Not Have Daily Fantasy Sports

Some US states have yet to legalize and launch daily fantasy sports sites. As of 2023, here’s a list of the states where it is illegal to gamble on DFS sites.

Which States Are Not Accepted at FanDuel?

FanDuel is arguably one of the largest DFS sites in the United States. According to Mordor Intelligence, FanDuel users are almost half of the total number of fantasy sports players in the U.S. Unfortunately, FanDuel DFS is yet to be legalized in some states. These states have yet to allow FanDuel DFS.

Which States Are Not Accepted At DraftKings in the US?

DraftKings and FanDuel together control 90 percent of the daily fantasy sports industry in the country. It features one of the largest fantasy and daily fantasy contests and tournaments. Despite DraftKings’ large presence, it has yet to penetrate the US states listed in the table below.

What is the Most Played Fantasy Sport in the US?

Fantasy football and baseball are the most played fantasy sports in the US. According to the Fantasy Sports and Gaming Association (FSGA), there were 50.4 million fantasy sports players in the US in 2022. About 29.2 million (58 percent) are active fantasy football players, while 12.5 million (25 percent) play fantasy baseball. Fantasy basketball is the third-most played fantasy sport. It has over 11 million players participating in fantasy leagues like the NBA and NCAA basketball.

Is Fantasy Football legal in the US?

Yes. Under the Unlawful Internet Gambling Enforcement Act, it is mostly legal to play fantasy football. However, not all states are fully on board with legalizing fantasy football. States like Nevada do not allow pay-to-play fantasy football games.

To legally play fantasy football for real money, players must fulfill these criteria:

• Be above the legal age limit. Each US state has laws concerning the age limit for playing fantasy football.
• Always check the state's regulatory agency for more information.
• Players must use state-approved FS and DFS sites.

Note: You will find fantasy football games on these sites: DraftKings, FanDuel, Yahoo Fantasy Sports, ESPN Fantasy, and NFL Fantasy Football.

Is Fantasy Baseball Legal in the US?

Yes. Fantasy baseball is legal in most states in the US. Also, it is the second-most played fantasy sport, with over 12 million players. To play this game on US DFS sites, interested players must meet these requirements:

• be above the minimum age limit
• deposit an entry fee on a DFS and FS site
• must play for real money on a state-licensed FS site.

Sites that offer fantasy sports include FanDuel, DraftKings, Fantasy Drafts, and Yahoo DFS.

Is it Legal to Bet on Sports in the US?

Yes. The US Supreme Court removed the ban on sports betting (PASPA), thus allowing states to decide whether to legalize it or not. As of January 2023, 24 states have legalized sports betting. Also, more states are working to pass laws to approve sports betting. For example, Massachusetts may approve sports betting and launch sportsbook sites by March, 2023.

Can you Win Real Money Playing Daily Fantasy Sports in the US?

Yes, US players can win real cash on DFS sites. DFS sites like FanDuel and DraftKings offer DFS games with huge price pools and rewards. In addition, you can use the bonus as leverage to increase your earning potential. For example, Draftkings offers a $3 entry fee for some DFS games and contests.

How do I bet on Fantasy Sports in the US?

Here's a general guide on how to bet on fantasy sports in the US;

1. Select a Fantasy Sports Site

The US is home to big-name fantasy sports sites like FanDuel and DraftKings. Each site has a unique set of features for FS sports gaming. Choose a site that offers the best unique set of features for your gaming needs.

For example, Draftkings has a $50,000 salary cap, which is smaller when compared to FanDuel's $60,000 salary cap. Also, Draftkings provides a 20 percent boost up to $500 on all first-time deposits.

2. Deposit and pick a sport.

Most sports leagues have a fantasy sports version. Scroll through the list on your preferred FS site, and select a sport. Don't choose an unfamiliar sport. Fantasy sports players may spend hours predicting the performance of their preferred athletes. Also, you need to know all the stats and follow real-life sports events.

3. Next, make a choice between daily fantasy and fantasy sports

Daily fantasy sports is the best option for getting a daily and consistent income. However, you need to dedicate time to this option. On the other hand, fantasy sports can run for a sports season, which may take between a few months and a year.

You can also choose between cash games and tournaments. Cash games like 50/50 are relatively safer and more preferred for new players. In a 50/50 DFS, you only need to be in the top 50 percent of winners. You can easily double the initial entry fee in a 50/50 cash game.

Playing Online

What are the Best DFS sites in the US?

The best DFS sites in the US include:

• DraftKings
• FanDuel
• DRAFT
• Monkey Knife Fight
• FantasyDraft
• Fantasy Football Players Championship
• FastPick
• Sports Hub
• Scout Fantasy Sports
• Yahoo Fantasy

Are DFS Betting Apps legal in the US?

Yes. DFS betting apps are legal in the US. Sites like FanDuel and DraftKings maintain mobile apps in states where it is legal to play fantasy sports. You can find your preferred DFS betting app on Google Play or Apple's iOS app store.

How Old do you Have to be to Play US Daily Fantasy Sports?

There is no federal age limit for fantasy players. However, US states allow players over 18 to play fantasy games for real money. For example, Michigan and Connecticut residents 18 years of age and older can access and play for real money on DFS sites. On the other hand, you must be over 21 years old to play DFS in Arizona, Iowa, Louisiana, and Massachusetts.

What Sportsbooks are Legal in the US?

The US houses over a dozen legal sportsbooks. As of 2023, fantasy sports betting is legal in 48 states, while traditional sportsbooks fall under a more complex system of legality. In states where sports gambling is legal, bettors can place their wagers at any number of licensed locations

Some of the top legal sportsbooks in the US include:

• DraftKings
• Caesars
• BetMGM
• BetRivers
• FanDuel
• PointsBet
• FOX Bet
• Golden Nugget
• Betway
• BetFred
• Bally Bet
• SuperBook
• Circa Sports
• BetParx
• Hard Rock
• PlayUp
• Fubo Sportsbook
• SBK (Smarkets)
• Tipico
• Bet365
• Elite Sportsbook
• Maverick Sports
• BetWildwood
• MaximBet
• Borgata
• Action 24/7
• SI Sportsbook
• Sky Ute

Is PrizePicks Legal in the US?

PrizePicks is licensed to operate in the US. As of January 2023, the site is legal in 27 states, including North Dakota, California, and Arkansas. PrizePicks offers daily fantasy sports contests and casino games. You'll find both popular casino titles and sports leagues on this site.

Is bet365 Legal in the US?

Bet365 is a legal and licensed sportsbook operator in the US. It launched its first online sportsbook and app in New Jersey in August 2019. Within a few years, the sportsbook had expanded to Ohio and Colorado. Today, bet365 is one of the best sportsbooks in the US. Nevertheless, you must be 21 years old and older to wager real money on this site.

Is Caesars Sportsbook in the US?

Caesars Sportsbook is one of the licensed sportsbooks operating in the US. It is legal in 19 US states, including Louisiana, Kansas, Maryland, and Virginia. Caesars online sportsbook is popular for its numerous bonuses, including the Caesars Rewards Program. In addition, it has the largest retail sportsbook operation in the country.

Is Bovada Legal in the US?

Yes. Bovada is a legal gambling operator in the US. However, the site is not legal in New Jersey, Delaware, New York, and Maryland. Due to restrictive regulations, Bovada pulled out of New York on June 21, 2021. This exit gave way for FanDuel and DraftKings to become the new favorites in the state.

Is BetMGM legal in the US?

Yes, BetMGM is a legal and licensed gambling operator in most states in the US. The operator is an offshoot of a much-larger MGM Resorts International and Entain Holding. It is legal in 20 US states, including Louisiana, Kansas, and Iowa. As one of the top gambling operators, it features retail casinos and sportsbooks in most states.

Is DraftKings legal in the US?

Yes. US players can gamble for real money on DraftKings. DraftKings fantasy sports is legal in 45 US states, including New Jersey and Delaware. It features one of the largest fantasy sports sites in the country.

Is SuperDraft legal in the US?

SuperDraft is a legal fantasy sports site in the US. Backed by Caesars Entertainment, the fantasy sports site launched operations in New Hampshire in 2019. As of January 2023, you can find SuperDraft fantasy sites in more than 30 US states. In addition, it features a mobile app on Android and iOS-powered devices.