UKGC Issues Warning To Fantasy Sports Providers
Fantasy sports is increasingly popular with sports fans looking to have some fun but also earn some real money. As we have reported over the years the daily fantasy sports industry particularly in the U.S. is hardly small money and had paid out hundreds of millions of dollars to recreational sports fans.
The amount of money being thrown around has of course also resulted in tighter regulations as many do consider fantasy sports nothing less than real money gambling.
The UK Gambling Commission is aware of the potential problems of massive leagues paying out large sums of money and has just issued a warning to fantasy sports league organizers ahead of the start of the football season. They are warning organizers to ensure they conduct their operations within the regulations and not with a betting pool of players that would require them to obtain a sports betting license.
The UKGC went to say that they do not want organizers to get “caught out by gambling law” and that organizers who operate their fantasy football leagues as a business will require a UKGC- issued pool betting license.
The UKGC pool betting license covers all betting activities including fantasy football by which players stakes are pooled and payouts are calculated on the formula of dividing the total pool value by the number of winners.
There is an exemption granted by the UKGC for privately run contests like office competitions. Here the only requirement to operate such a competition is to prove it is not being run as a business.
The UKGC put emphasis on warning operators who advertise and encourage people to gamble on social media. Here according to regulations anyone promoting on Facebook or Twitter could mean they are running their operation as a business and could require a licence.