Atlantic City Casinos To Add Fantasy Sports Games For Money

Sticking a finger in the eye of the sports leagues that have won the first legal decision to prevent the State of New Jersey to offer sports betting, New Jersey is allowing casinos to offer daily fantasy sports games as an alternative.  According to the New York Times article, the state’s Division of Gaming Enforcement published regulations establishing standards for casinos to offer fantasy sports tournaments for money.  Even though players will pay money to play and can win cash, New Jersey won't regulate these games as gambling, dovetailing with federal law that distinguishes between fantasy sports and sports gambling.

From a gaming industry perspective, these games are not envisioned to be money makers for the casinos on their own.  They will be used as marketing tools to help attract players that will hopefully stay and play other games, eat at the restaurants, etc.  From New Jersey's perspective, this may open another front in the battle over sports betting, showing the court that what the sports leagues are doing with fantasy sports really isn't all that different than sports betting.  Don't be surprised if the casinos expand the offering to include college sports in addition to professional sports, hoping the NCAA tries to legally stop the activity.  That may be the legal trap being set by New Jersey.

The Times article does quote how this could be good for casinos as people will feel comfortable online with a trusted entity.  The person who said that from a online gambling advocacy group obviously doesn't know anything about fantasy sports.  Over 30 million Americans play fantasy sports now, predominantly online, with large players such as CBS and Yahoo.  They aren't going to switch to some Atlantic casino website because a state government says it is OK.  The federal government back in 2006 said it is OK.

Don't read too much into this development as a great positive for fantasy sports.  Think of this development as another chess move in the battle for sports betting in New Jersey.  If New Jersey wins, that is the big development as that will allow any state to offer sports betting if it desires.