FSTA In the News

Congratulations to the winners of the 2009 FSTA Awards.  Marking the best in the industry, the Fantasy Sports Trade Association released the names of the winners of its annual awards on January 26 & 27 at the Palms hotel in Las Vegas during the 2010 FSTA Winter Conference, Sponsored by Yesteryear Fantasy Sports.  Award nominations are self-submitted and the finalists are determined by blind voting process by the FSTA Board of Directors.  The winners are selected by members of the Fantasy Sports Trade Association.

So, with no further ado, the winners of the 2009 FSTA Awards:

Again congratulations to the winners!

Time is short to get your registration in for the 2010 FSTA Winter Conference, sponsored by Yesteryear Fantasy Sports: the festivities kick off in less than two weeks!  Join us at the Palms in fabulous Las Vegas for two days of networking, fascinating conference presentations, and a whole lot of fun (it is Vegas, after all!)

The FSTA is proud to announce the addition of John Randle, legendary Minnesota Viking Defensive Tackle and veteran from “the trenches”.  John has teamed up with TrenchFantasy.com to help spread the word on one of the most innovative fantasy football game to hit the category in years.  Trench Fantasy is built around the idea that the ‘game is won and lost in the trenches’ and now fantasy players can compete in the trenches alongside their traditional QB, RB and WR leagues.

Hear the Pro Bowler’s thoughts on fantasy sports, how it has affected the players, and his role in the booming fantasy sports industry on Tuesday, January 26th.  Join us for dinner at the ESPN Zone, sponsored by XML Team Solutions, and get the chance to meet an NFL legend!

Log on to fsta.org/conference to learn more about the 2010 FSTA Winter Conference, sponsored by Yesteryear Fantasy Sports.

We will see you soon!

The Fantasy Sports Trade Association (FSTA) has been made aware of a situation in which four Fidelity Investments employees were terminated for perceived gambling in the form of fantasy sports.

The FSTA is disappointed by this action, as it furthers the incorrect perception that fantasy sports is linked to gambling.

“The FSTA recognizes each company’s right to set guidelines for an employee’s use of company assets and time for outside activities,” said FSTA president Paul Charchian.  ”However, the reason cited by Fidelity for the termination of these employees is that they gambled by playing fantasy sports, and that reasoning is troubling.”

Gambling law expert, Professor I. Nelson Rose, observes that, while fantasy sports may be considered gambling in a minority of states, “the government exempted fantasy sports from the Unlawful Internet Gambling Enforcement Act (UIGEA),” an action that reinforces the FSTA’s position that fantasy sports is not gambling.

Charchian continued, “Congress recognized the distinction between fantasy sports and criminal sports gambling, and wrote exclusionary language around fantasy sports play. No fantasy sports company has been the subject prosecution for gambling.  No person has been the subject of prosecution for gambling related to fantasy sports participation.”

Courts and federal government rulings definitively divide fantasy sports from gambling.  In Humphrey v. Viacom (2007), the courts found that, “as a matter of law, the entry fees for … fantasy sports leagues are not ‘bets’ or ‘wagers’ because (1) the entry fees are paid unconditionally; (2) the prizes offered to fantasy sports contestants are for amounts certain and are guaranteed to be awarded; and (3) defendants do not compete for the prizes.”  This ruling set the tone for the exclusionary UIGEA text that exempts fantasy sports from the UIGEA regulations, which are set to go into effect on Dec. 1, 2010.

According to a June 2009 FSTA study by research firm IPSOS, there are 27 million Americans aged 12+ playing fantasy sports.

Additional research commissioned by the FSTA via Dr. Kim Beason at the University of Mississippi indicates that:

• 54% say fantasy sport participation increases the camaraderie among employees in their workplace.
• 37% say fantasy sports participation is a positive influence in their workplace.
• 16% say fantasy sports participation has allowed them to make valuable business contacts.

“Fantasy sports offers virtually-free workplace team-building, providing myriad benefits, including cross-functional communication,” said Charchian.  “Restricting fantasy sports play chisels into workplace morale at a time when many companies are challenged by that very issue.”

Additionally, fantasy sports is embraced by all major sports leagues, players associations, and major media portals such as NBC, CBS, Fox, ESPN and Yahoo!

Added Charchian, “If there were any merit to Fidelity’s suggestion that fantasy sports participation is gambling, these entities would very likely not support it.”

“The FSTA is happy to work with Fidelity to enhance their understanding of the legal issues around fantasy sports participation, especially surrounding the gambling distinction.”

About the FSTA

The FSTA is the largest and oldest trade group representing the fantasy sports industry with over 120 members ranging from small startups to large media corporations. As the voice of the industry since 1998, the FSTA has been the leader in providing demographic data, annual conferences and collective action to ensure unfettered growth.

Related Links:

Fantasy Sports Trade Association: Visit www.fsta.org for more information.

Professor I. Nelson Rose: (http://www.gamblingandthelaw.com)

Complete Text of the UIGEA: http://thomas.loc.gov/cgi-bin/query/F?c109:6:./temp/~c109YxQR7a:e220380

Charlie Wiegert’s comments from his blog, http://www.godfatheroffantasysports.com/

Jeff Thomas’s comments via http://www.fantasysportsbusiness.com

Entrepreneur.com published a story this week detailing the growth of Fantasy Sports from a niche to a staple in the minds and hearts of sports fans.  Read the article here: http://www.entrepreneur.com/magazine/entrepreneur/2009/september/203140.html

USA Today has a story about four new fantasy sports products by companies traditionally unrelated to the fantasy sports industry, including Best Buy, Snickers, Ford, and Coors Light.  FSTA President Paul Charchian contributed to this article, opining that fantasy sports players are, to advertisers, “highly dedicated, highly committed players with very, very attentive engagement.  “Read the entire article from USA Today.

FSTA President Paul Charchian was on The Takeaway, a podcast service that discusses politics and issues in popular culture.  Listen to the interview at The Takeaway website.

Saturday, August 29 BlogTalkRadio.com will host a 12-hour fantasy football talkathon to help raise money for The Cystic Fibrosis Foundation.

Cecil and Sigmund from footballguys.com will host the event beginning at noon EST and wrapping up at midnight on August 30.  There are several ways the fantasy sports industry can help promote this event.

For more information about the event contact Marc Ronick from BlogTalkRadio.

Click here for more information about the event.

News announced today that FSTA member Open Sports has been contracted to provide fantasy sports games for Fox Sports on MSN.  Read more details at the Sports Business Journal.

Read the press release in its entirety here.

An article on Entrepreneur.com detailing Mike Levy and FSTA member OPENSports.com talks about the positive aspects of investing in the fantasy sports industry in 2009.  Author Karen Spaeder calls the fantasy sports industry one of the best startup markets this year.

“Once you’ve found your niche, it’s critical to find ways to make your sports fan customers happy. Levy says of his OPENSports.com users, “These users are a dedicated bunch.” And you don’t even need to set out beer nuts to do it.”

Read the entire article at: http://www.entrepreneur.com/magazine/entrepreneursstartupsmagazine/2009/march/200590.html

The ESPN fantasy sports documentary “Silly Little Game” will be filming at the 2009 FSTA Summer Conference, Sponsored by MyFantasyLeague.com, June 18 & 19.  The project, first announced in May, is described below:

“Fantasy Sports is a $4 billion dollar industry that boasts more than 20 million participants and a league for almost every sport imaginable. But for all this success, the story of the game’s inception is little known. The modern fantasy leagues can be traced back to a motley group of writers and academics who met at La Rotisserie Francaise in New York City to form a baseball league of their own: The Rotisserie League. The game quickly grew in popularity, and with the growing use and popularity of the Internet, the “Founding Fathers” never foresaw how their creation would take off and ultimately leave them behind. Innovative filmmakers Adam Kurland and Lucas Jansen will chronicle the early development and ultimate explosion of Rotisserie Baseball, and shine a light on its mostly unnoticed innovators.”

A film crew will be in Chicago speaking to attendees about the growth and history of fantasy sports, along with looking at the future of the industry.

There is still time to reserve a spot at the 2009 FSTA Summer Conference in Chicago–check out the agenda and get registered here:  http://fsta.org/news/events/chicago2009.php

(June 3, 2009) The Fantasy Sports Trade Association has become aware of a lawsuit filed by Yahoo! Inc. against the NFL Players Association in the U.S. District Court of Minnesota over the issue of licensing fees.

This suit appears to be similar to the one initiated by CBS Sports against the NFLPA last year in the same court.  CBS Sports won summary judgment in the case in April (the NFLPA has since appealed). 

In 2007, CBC Distribution and Marketing Inc. won rulings in both the United States District Court in St. Louis and in the United States Court of Appeals for the Eighth Circuit rulings against Major League Baseball and its Players’ Association which allowed the company to use player names and statistics without paying a licensing fee. The U.S. District Court where the CBS lawsuit was heard and where Yahoo! has filed its lawsuit is part of the Eighth Circuit.

“The fact that the NFL Players Association continues to demand licensing fees is disheartening news for the industry, and for fantasy sports participants,” says Paul Charchian, President of the FSTA.  “The Players’ Association is seemingly oblivious to the obvious and tangible benefits derived from the proliferation of fantasy sports, along with the many cases that have already been decided in favor of fantasy operators.  While the FSTA will support Yahoo in this case, we also hope to cooperate with each of the players’ associations to help maximize fantasy sports products.”

Read the filing in its entirety here.

This is sure to be a hot topic at an already hot conference June 18 & 19–make sure you register to reserve your place at the 2009 FSTA Summer Conference, Sponsored by MyFantasyLeague.com.  Check out the agenda and get registered! 

The Fantasy Sports Trade Association has been the voice of the fantasy sports industry since 1999. Learn more about the organization and become a member here.

John Charles Bradbury, author of the book “The Baseball Economist: The Real Game Exposed” will join the 2009 FSTA Summer Conference sponsored by MyFantasyLeague.com to provide insights into current economic conditions and looks at how these unprecedented times will affect sports and other leisure activities.  Conference attendees will get exclusive access to Dr. Bradbury’s research and discussions that will give you the advantage for 2009 and beyond.

The complete agenda for the 2009 FSTA Summer Conference is available now at fsta.org.

This year’s election is complete, and CBS Sports and XML Team Solutions will now gain representation on the Fantasy Sports Trade Association’s board of directors.

View full article at FantasySportsBusiness.com

The Maryland state legislature is exploring changing state rules to allow prizes for fantasy sports players, and the FSTA provided testimony.

View the full article at FoxNews.com

Fantasy sports, where fans select real athletes for make-believe teams, are exploding onto new platforms like smart phones and social networking sites, grabbing the attention of advertisers, wireless carriers and software companies.

View full article at Reuters.com

The U.S. Supreme Court on Monday declared open season for fantasy-sports companies. The high court effectively ended a three-year legal battle when it refused to hear an appeal from Major League Baseball and its Players Association that, if successful, could have given professional sports leagues the ability to control the lucrative fantasy-sports business. Instead, the court’s decision solidifies the rights of fantasy-sports companies to run their businesses without having to buy licenses from the major sports leagues or their players’ unions anymore.

View full article at Wall Street Journal Online

The U.S. Supreme Court has rejected an appeal from Major League Baseball and its players association, thereby giving a fantasy sports operator the right to use players’ data without paying licensing fees.

View full article at Gaming Industry Media

The U.S. Supreme Court rejected an appeal from Major League Baseball and its players association, leaving intact a ruling that lets a fantasy-sports company use players’ names and statistics without paying licensing fees.

View full article at Bloomberg.com

In this opening week of the baseball season, most major league managers have their home plates full with only one team to worry about. Cuong Truong has to manage players from different 10 teams.

Truong is no Joe Torre, but he is one of a growing number of fantasy sports enthusiasts. These fans spend countless hours at their computers pondering the statistical permutations of their own custom teams, made up of players from all the rosters in Major League Baseball.

View full article at ABC News Online