Study Shows DFS Is Based On Skill And Not Chance
The question whether daily fantasy sports is a game of skill or chance has been widely debated over the last few years. Both DFS giants DraftKings and FanDuel used the argument that DFS is a skill based game when defending themselves before lawmakers who considered them nothing less than real money gambling.
Indeed the very fact that this question is open to debate is what resulted in increased scrutiny for the DFS industry that resulted in lengthy lawsuits and increased regulation.
A recent study conducted by Kansas University concluded that DFS is indeed a games skill and not merely a game of chance. The study which was published in the Journal of Sports Science was aimed at legislators and the hope is for them to classify DFS not as gambling.
Among some of the findings of the study were that,” Unskilled participants never win at DFS. With extremely high probability, all DFS winners have skill.”
The result of the study by Professor Todd Easton and Sarah Newell were based on conclusion from studying simulation cases that generated random teams. The idea was to simulate a DFS participant who knows nothing about the sports. The results were that such participants failed dismally and did not won a single payout.
The study said,” The most astonishing result is that not a single team won a payout. It is difficult to truly comprehend the extreme rarity of losing all 35 contests. This is less likely than a single ticket winning the Powerball. It is less likely than flipping a coin and getting heads 28 times in a row. It is 300 times less likely than being struck by lightning this year.”
In their conclusion aimed at legislators the authors stated unequivocally that,” Elected leaders and the judges of the country or state determine what constitutes gambling. This paper has shown that DFS contests do not meet one the necessary requirements of gambling: chance. Thus, the authors recommend that states should no longer legally consider DFS salary cap contests as gambling and encourage the use of this research to inform the public and lawmakers of these new developments in this controversial topic.”