Josh Moon

Montgomery Advertiser

Daily fantasy sports contests have been ruled by Alabama’s attorney general to be gambling, not games of skill, and illegal in the state.

Attorney General Luther Strange said that after studying Alabama law, the state’s broad definition of “illegal gambling” made the fantasy games illegal in the state. He has issued a cease and desist letter to both Fanduel and DraftKings, the two most prominent operators of the games.

“Daily fantasy sports operators claim that they operate legally under Alabama law. However, (they) are in fact illegal gambling.”

The games, which are played by millions of Americans and advertised frequently during televised sporting events, involve selecting a roster of players within a set salary cap from various teams in college and professional sports. Games on Fanduel and DraftKings cost anywhere from $1 per game to more than $1,000, and winners can rake in up to seven figures on some games.

According to Strange, Alabama law defines as “illegal gambling” any contest in which participants stake something of value with the hopes of winning a prize, even if the contests involve skill.

In the press release, Strange’s office concedes the selection of players for the fantasy sports contests involve some level of skill. But because the players can have poor performances, be injured or just not play better than another player at the same position, “the contests depend to a large degree on chance.”

“That is the very definition of gambling under Alabama law,” the release states.

The argument often cited by the fantasy sports operators and those who play the games is that they differ very little from trading stocks – a practice which involves chance and rewards those who study trends and make smart investments.

Alabama is the 12th state to declare daily fantasy sports games illegal in some fashion.

Gambling in Alabama: A high-stakes game of political intrigue