[JURIST] The Tennessee Attorney General [official website] on Wednesday issued an opinion [text, PDF] that states that fantasy sports amounts to illegal gambling within the state. Attorney General Herbert Slatery said in his opinion that all fantasy sports games, including those on daily sports sites such as FanDuel and DraftKings, are illegal within the state. The opinion also says that fantasy players win mostly by chance rather than skill when choosing teams and athletes in numerous game formats. The AG went on to argue that, “absent legislation specifically exempting fantasy sports contests from the definition of ‘gambling,’ these contests constitute illegal gambling under Tennessee law.” Many fantasy sports websites have issued [Tennessean report] against the opinion, claiming that it is improper and unfounded.

Many officials have stated that online fantasy sports may be an illegal form of gambling. Hawaii Attorney General Doug Chin [official website] released an advisory opinion in January declaring [JURIST report] that daily fantasy sports websites in which players pay to participate are considered gambling and are therefore illegal in the state. Also in January Texas Attorney General declared [JURIST report] daily fantasy sports websites illegal within the state. Earlier that month the Appellate Division of the New York State Supreme Court granted [JURIST report] FanDuel and Draftkings a stay allowing them to continue to operate within the state during their appeal. In August the US Court of Appeals for the Third Circuit [official website] ruled against New Jersey, deciding 2-1 to uphold [JURIST report] the federal ban on sports betting in all but four states. In December 2011 the US Department of Justice [official website] clarified its stance on online gambling [JURIST report] in a memorandum opinion holding online non-sports related gambling that crosses state or international borders is not covered by the Wire Act of 1961 [text, PDF].