State Exemptions In 2012 And The Reasons Why

[Greg Ambrosius]

Yesterday the NFBC opened its Registration page, officially kicking off the 2012 NFBC season. This is our 9th season of competition and we truly believe this is going to be our biggest and best year yet. Signups are already pouring in and tomorrow we'll begin our first Slow Drafts of the season. Very exciting.

However, one change that you may have noticed on the Registration page is the exclusion of six states. This year for the first time, the NFBC is excluding participants from the states of Washington, Montana, Louisiana, Arizona, Vermont and Iowa. The exclusion is for all live and online events hosted by the NFBC.

The NFBC and NFFC have guaranteed their prizes and paid over $11 million over the last eight years, in full and on time, while running first rate events and contests for our players. We strive for, and consistently achieve, excellence, and at the same time, we run our business in compliance with applicable laws. Though there is federal legislation, the Unlawful Internet Gambling Enforcement Act of 2006, which expressly exempts fantasy sports games from the definition of illegal gambling (provided that certain conditions are met), several states’ anti-gambling statutes contain definitions which could be interpreted to affect fantasy sports contests. State statutes can vary from federal statutes, and we must adhere to the laws of all the states where we may find ourselves doing business; sometimes this comes down to a matter of interpretation.

The NFBC is clearly a game of skill, not chance, requiring participants to make myriads of decisions throughout the course of the long baseball season. To be successful, an NFBC participant needs a deep and extensive knowledge of baseball and its athletes. Nonetheless, due to interpretations of certain state statutes, we feel it has become necessary to take certain precautions, and we are thus not accepting registrations from residents of Washington, Montana, Louisiana, Arizona, Vermont and Iowa. If laws or interpretations change in the future, then we will obviously adapt as well. However, in the meantime, we apologize for any inconvenience or disappointment these revisions may have caused.

If you have any questions or want to learn more about these state guidelines, contact me at [email protected]. Thank you for your understanding.

[Gekko]

Any lawmaker who thinks this is a game of chance is free to try their "luck" at the NFBC. I guarantee if they don't possess skill, they will get their asses handed to them. 100% stone cold lock.

[Greg Ambrosius]

Obviously this was a big part of our delayed beginning to the 2012 season. This was an issue we took very seriously and yet it affects so many of our players. Again, if players in those states have questions about this exemption they can contact me at [email protected] or at 715-254-5553. I'm always interested in explaining our position.

[whale4evr]

Greg,

Any idea where this trend is going? Are these new statutes from the affected states? Could other states conceivably follow suit in the future? That would really kill the industry if more states go the same route.

[Greg Ambrosius]

Greg,

Any idea where this trend is going? Are these new statutes from the affected states? Could other states conceivably follow suit in the future? That would really kill the industry if more states go the same route.

No, this is nothing new. These six states have always had language in their state gambling laws that leaves it open to interpretation that fantasy sports could fall under their umbrella. None of these states -- except for one recently with us -- have aggressively pursued fantasy sports games or made this issue. But you can see where contests from ESPN, Sportsline, FanDuel and other companies are voiding these six states and now STATS is voiding these six as well.

What needs to be done, in my opinion, is for the industry to approach these six states and ask for an opinion about fantasy sports rather than just keep exempting them. Let it be clear: In no state gambling language is fantasy sports specifically mentioned. It's just the way these states word skill vs. luck and the reward of monetary prizes that scares some folks away and rightly so. In my opinion, it's time to hire the right person to ask for these states to add the same fantasy carve-out language we have in a federal bill or at least get a legal opinion from each of these states. I'm sure their state residents would like to know if what they are doing is okay or not. Also, why should we have a federal law that specifically says fantasy sports is a game of skill and legal to be played under the right guidelines when other states don't have the same opinion? It's time to all get on the same page.

This is an industry issue that I hope gets resolved in the next year. And I hope we can help get it resolved. It's certainly on my To-Do list.

[Dawg]

Crap...I knew this was coming. Being from Iowa I have had a hard time in the past signing up for a lot of games Greg mentioned above. I guess I will have to move to another state!

[mattjb]

Can't tell you how relieved I am to not see Maryland on that list.

[The Mighty Men]

Can somebody please get Idaho added to that list so we all have a chance next year?

[PGromek]

Walla Walla?

[shazballz]

Greg,

Any idea where this trend is going? Are these new statutes from the affected states? Could other states conceivably follow suit in the future? That would really kill the industry if more states go the same route.

No, this is nothing new. These six states have always had language in their state gambling laws that leaves it open to interpretation that fantasy sports could fall under their umbrella. None of these states -- except for one recently with us -- have aggressively pursued fantasy sports games or made this issue. But you can see where contests from ESPN, Sportsline, FanDuel and other companies are voiding these six states and now STATS is voiding these six as well.

What needs to be done, in my opinion, is for the industry to approach these six states and ask for an opinion about fantasy sports rather than just keep exempting them. Let it be clear: In no state gambling language is fantasy sports specifically mentioned. It's just the way these states word skill vs. luck and the reward of monetary prizes that scares some folks away and rightly so. In my opinion, it's time to hire the right person to ask for these states to add the same fantasy carve-out language we have in a federal bill or at least get a legal opinion from each of these states. I'm sure their state residents would like to know if what they are doing is okay or not. Also, why should we have a federal law that specifically says fantasy sports is a game of skill and legal to be played under the right guidelines when other states don't have the same opinion? It's time to all get on the same page.

This is an industry issue that I hope gets resolved in the next year. And I hope we can help get it resolved. It's certainly on my To-Do list.

Be careful what you wish for. Letting the Feds have complete say on this issue might not be a good idea. If they ever decided to change the law then it could put you out of business. I think lobbying the few states to change the wording of their laws seems safer. If you lose a couple of states, well that sucks, but I would be scared to death of allowing the Federal Government to regulate the industry.

Maybe this is just my Libertarian side rambling here.

[rockitsauce]

sorry been under a rock.....so are you saying that I cannot compete here anymore because I reside in Tucson, AZ? some wording has recently changed, wtf? my brother just sent me a copy of shandler's book. I don't do effing yahoo, this is ridiculous. The gov't doesn't have more important shit to worry about, there isn't a stupid gremlin out there to show my feelings rt now, this just SUCKS!

* I should've known AZ would be on the list. AZ should be on ALL lists for things that suck. The only guarantee u have here is hot dry weather. This place is the Alabama of the west.

[Ando]

[/quote]

sorry been under a rock.....so are you saying that I cannot compete here anymore because I reside in Tucson, AZ? some wording has recently changed, wtf? my brother just sent me a copy of shandler's book. I don't do effing yahoo, this is ridiculous. The gov't doesn't have more important shit to worry about, there isn't a stupid gremlin out there to show my feelings rt now, this just SUCKS!

* I should've known AZ would be on the list. AZ should be on ALL lists for things that suck. The only guarantee u have here is hot dry weather. This place is the Alabama of the west.

You are the first person I thought about when I was saw Arizona added to this list. This is not good and I hope something gets done about it soon for your sake and other's.

You live with your brother for more than half the year, right? Right?

[rockitsauce]

sorry been under a rock.....so are you saying that I cannot compete here anymore because I reside in Tucson, AZ? some wording has recently changed, wtf? my brother just sent me a copy of shandler's book. I don't do effing yahoo, this is ridiculous. The gov't doesn't have more important shit to worry about, there isn't a stupid gremlin out there to show my feelings rt now, this just SUCKS!

* I should've known AZ would be on the list. AZ should be on ALL lists for things that suck. The only guarantee u have here is hot dry weather. This place is the Alabama of the west.

You are the first person I thought about when I was saw Arizona added to this list. This is not good and I hope something gets done about it soon for your sake and other's.

You live with your brother for more than half the year, right? Right? [/quote]

Thanks man, I get real names mixed up w/ handles on here, is it Matt? No matter, I appreciate the thought. as the Dude would say, "it's a bummer, man". I always try to see something funny in everything...it's how I'm wired I guess, maybe it's a defense mechanism, hope 4 the best, expect the worst, but this is truly a gotta laugh to keep from crying I will need to go to rehab if I cannot compete here. They're gonna hafta put me on happy pills to numb my existence w/out fantasy baseball.....and ppl think Doughboys is obsessed. Please. That guy DOES indeed have a life. He has a wife, kids/grandkids, a love of doritos I have none of those things, screw doritos! U wanna talk obsessed? I'm doin a goddamn mockdraft w/ myself and 11 autobots..RIGHT NOW. OK, let's be real here, don't make me have a breakdown....ahhhh, F... ..!

[attachment=0]bummer.jpg

[homer35h]

This sucks, being from Iowa I was happy that I didn't have to worry about this with NFBC but I guess add another site
I can't play on, I hope cdm doesn't change there rules because I'am running out of places to play.

[Greg Ambrosius]

Crap...I knew this was coming. Being from Iowa I have had a hard time in the past signing up for a lot of games Greg mentioned above. I guess I will have to move to another state!

Dawg, Jesse, Rockitsauce, call me at 715-254-5553 for more information. I don't want any of you guys jumping off the ledge over this just yet. Thanks.

[Walla Walla]

I wish I never had asked about this!

[whipsaw]

I feel badly for those in the exempted states... hopefully the state legislatures will wake up and realize this is ridiculous...

That said, I would imagine that there are a number of easy ways around this issue for those affected.

[Captain Hook]

sorry been under a rock.....so are you saying that I cannot compete here anymore because I reside in Tucson, AZ? some wording has recently changed, wtf? my brother just sent me a copy of shandler's book. I don't do effing yahoo, this is ridiculous. The gov't doesn't have more important shit to worry about, there isn't a stupid gremlin out there to show my feelings rt now, this just SUCKS!

* I should've known AZ would be on the list. AZ should be on ALL lists for things that suck. The only guarantee u have here is hot dry weather. This place is the Alabama of the west.

I hope this is really not a surprise to you - state laws here haven't changed in years

As others have said, lots of ways do work around it

[TOXIC ASSETS]

There has to be some sort of exemption for Rockitsauce, doesn't there? For God's sake, this guy just did one of the "all time" drafts --- you have to love fantasy sports to participate in that. Rockit, send me an email or if you don't have it, send me a PM here. There has to be a way to get this done.

[rockitsauce]

* I should've known AZ would be on the list. AZ should be on ALL lists for things that suck. The only guarantee u have here is hot dry weather. This place is the Alabama of the west.

I hope this is really not a surprise to you - state laws here haven't changed in years
As others have said, lots of ways do work around it

Perry, if that's the case than why is this an issue now? (if the laws haven't changed in years) I've competed here since 2007 and have lived in Tucson since '03...never an issue til now I spoke w/ Greg this am, so I know why Stats is taking the stance that they are, and I understand the decision.

As u alluded to there are ways around this roadblock and the rockit will abide

[rockitsauce]

There has to be some sort of exemption for Rockitsauce, doesn't there? For God's sake, this guy just did one of the "all time" drafts --- you have to love fantasy sports to participate in that. Rockit, send me an email or if you don't have it, send me a PM here. There has to be a way to get this done.

Thx Ken, appreciate the concern. Luckily my brother resides in NC (though he's another PHILLIE fan ) some folks know him as Cobb, others as Harry Crumb, to me he'll always be little Joe

anyways, we're not gonna let Gov. Cryptkeeper keep me from my beloved NFBC!

[Atlas]

I read an article on this in a waiting room about a year ago. I forget what periodical it was, but they made a good case that it WAS NOT a game of chance. They did it with basically the same points Greg made.

I would go a step further...

Taking the NFBC as the premier Fantasy Sports affilitation, just scan the top (and, unfortunately, the bottom) of the winners list each year and you'll see consistancy in the standings (Lindy, et al).

Statistics isn't my profession, but a little bit of logic would tell you that if this were a lottery system, then you would expect see a much more dispersed finisher's list year to year. As it stands now, the top players are, for the most part, the top players each year. And the lesser players are, unfortunately, the lesser players each year (raises hand).

It can vary by a little, but that little can be attributed to an error (or more than one error) in judgement; an unforeseen injury (is there ever a "foreseen injury?...oh yeah, Josh Hamilton) or....guess what...a little LUCK, be it good or bad.

Sorry.
Had to get that off my chest.

[Money]

I'd like to lobby to get the state of Idaho included here!! Kidding.

So now we have Alias players playing from Alias states. Where does Frank Kowolski reside? We need his expert advice here

Seriously, I can't believe it would be illegal for you to simply access the website from a given state, that would be ludicrous. The issue is the exchange of funds I'm presuming. There is an obvious way around all of this and I'm sure anyone with the passion for this game and this site are already on top of those options. Just sucks that you have to jump through those hoops. Good luck to all of you.

[Sack]

In order to protect himself in this area and the public outcry to add the State of
Idaho to the list of ineligible States, rumor has it that THE CHAMP has banished
his Son Gabe from the house and sent him to live in CALIFORNIA....just in case!

Lindy, sounds like a WIN - WIN to me!

[MadCow Sez]

We all know Gabe is the rainmaker...but why in the hell would you ever send anyone to live in California?