Daily fantasy sports (typically shortened to DFS) exploded in popularity a few years ago as a new way to play fantasy and potentially win money. It is an online game where players put together virtual fantasy teams to compete against others for cash prizes based on the performance of those teams.
While DFS games may appear similar to traditional fantasy sports, there is debate over whether or not they should be considered a form of gambling. A lot of that debate comes down to a single question.
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Is DFS a Skill or Luck?
Many people argue that DFS should be considered a skill-based game, given that it requires strategic thinking and knowledge to succeed. However, luck is also always part of the equation when attempting to predict what happens in sports.
Why DFS Success Relies on Skill
DFS players who understand how particular player statistics affect the odds of winning can use that knowledge to make informed decisions about which athletes to pick for their team. It would be impossible to blindly make picks and hope that it all turns out for the best. Getting lucky once or twice is one thing, but sustained success requires skill and knowledge.
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The top DFS players in the world all treat daily fantasy sports like their job. It’s impossible finding success when only putting in minimal effort. Most spend months and even years developing a system that works for them. The system doesn’t have to perform well all the time, but enough to be up long term with money earned.
All this work is necessary because just like with gambling, DFS companies make money on the accumulative losses of players. More than 85% of DFS players lose more money than they win. When looking at DFS specifically, only a small percentage at the top makes enough to treat it like their full-time job.
Why DFS Success Relies on Luck
Plenty of people stick by claiming DFS relies heavily on luck. Inconsistent player performance and unforeseen injuries can significantly affect the outcome of games, even if a person is very well prepared. Some even go so far as to call DFS a new form of gambling, since wagers are based purely on hope or chance rather than skill.
DFS is very hard to win long-term relying on luck, but a person can always good a crazy return playing for the first time. There have been instances where people know nothing about a sport, but they picked a few players and ended up winning big.
The luckier a game becomes, the more people label it as gambling. There are so many variables to sports that luck will always play some role.
Is DFS the Same as Gambling?
According to laws in several countries and states, there is a distinct difference between daily fantasy sports and gambling. Daily fantasy sports get viewed as a bit more of a skill-based game, so it’s allowed in areas where gambling isn’t.
Winning percentages are roughly the same for DFS and sports gambling. Maybe the biggest thing in DFS favor is that people compete against other players instead of the house. While companies will take a form of commission on every game played, this distinction has helped out.
Wording can also play a role in differentiating the two. Instead of putting money down, it’s known as an entry fee in DFS. They reward prize money instead of winnings. This might be very similar to sports betting, but it’s helped keep DFS legal in a lot more states than sports betting.
This has led to FanDuel and DraftKings operating in all but five states with daily fantasy sports. Meanwhile, less than half of the states don’t allow in-person and mobile app sports betting. There’s optimism that will change within the next decade or so, but DFS is the clear legal winner right now.