In the right corner, weighing in with Heisenbergian uncertainty on the legal grounds for prosecuting fantasy sports gamblers, the Meade County Mauler, the Channette Choker, Attorney General Marty Jackley:
Prosecutors are entrusted with the enormous responsibility of protecting society through criminal enforcement. Before bringing a criminal action that has the lawful authority to take away ones liberty and freedom, a prosecutor must be satisfied that the law is clear and that a knowing violation is supported by the evidence. Based upon the current state of uncertainty, including the ongoing debate on whether daily fantasy sports wagering is predominately a permissive game of skill or an unlawful game of chance, it will not be my intent to seek felony indictments here in South Dakota absent a clearer directive from our state legislature. I will continue to consider other alternatives including potential civil remedies and National Attorneys General joint action aimed at protecting the intent of our Constitutional and statutory provisions [Attorney General Marty Jackley, press release, 2015.12.07].
And in the left corner, weighing in with a surprising desire for regulation, the Dell Rapids Distresser, Grandpa Cheap, Governor Dennis Daugaard:
Gov. Dennis Daugaard says he believes wagering on daily fantasy sports should be considered gambling under South Dakota law.
Daugaard told The Associated Press on Monday that he thinks fantasy sports is “no more a game of skill than blackjack is a game of skill” [“SD Governor Daugaard Says Fantasy Sports Should Be Considered Gambling,” AP via DRG News, 2015.12.07].
Place your bets on who will win this clash of South Dakota titans… but don’t do so blindly, because that would be a game of chance. Inform your bet with a review of South Dakota gambling law, and then you’re engaged in a game of skill, right?
Article 3, Section 25 of the South Dakota Constitution prohibits games of chance, with specific exceptions:
The Legislature shall not authorize any game of chance, lottery, or gift enterprise, under any pretense, or for any purpose whatever provided, however, it shall be lawful for the Legislature to authorize by law, bona fide veterans, charitable, educational, religious or fraternal organizations, civic and service clubs, volunteer fire departments, or such other public spirited organizations as it may recognize, to conduct games of chance when the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, religious, or other public spirited uses. However, it shall be lawful for the Legislature to authorize by law a state lottery or video games of chance, or both, which are regulated by the State of South Dakota, either separately by the state or jointly with one or more states, and which are owned and operated by the State of South Dakota, either separately by the state or jointly with one or more states or persons, provided any such video games of chance shall not directly dispense coins or tokens. However, the Legislature shall not expand the statutory authority existing as of June 1, 1994, regarding any private ownership of state lottery games or video games of chance, or both. The Legislature shall establish the portion of proceeds due the state from such lottery or video games of chance, or both, and the purposes for which those proceeds are to be used. SDCL 42-7A, and its amendments, regulations, and related laws, and all acts and contracts relying for authority upon such laws and regulations, beginning July 1, 1987, to the effective date of this amendment, are ratified and approved. Further, it shall be lawful for the Legislature to authorize by law, roulette, keno, craps, limited card games and slot machines within the city limits of Deadwood. The entire net Municipal proceeds of such roulette, keno, craps, card games and slot machines shall be devoted to the Historic Restoration and Preservation of Deadwood [South Dakota Constitution, Article 3, Section 25, last amended 2014.11.04].
South Dakota Codified Law Chapter 22-25A sets the rules for internet gambling:
SDCL 22-25A-1: For the purposes of this chapter, the term, bet or wager, means to directly or indirectly take, receive, or accept money or any valuable thing with the understanding or agreement that the money or valuable thing will be paid or delivered to a person if the payment or delivery is contingent upon the result of a race, contest, or game or upon the happening of an event not known to be certain. Bet or wager does not include the purchase, sale, or trade of securities or commodities under state or federal law.
SDCL 22-25A-2: For the purposes of this chapter, the term, gambling business, means a business that is conducted at a gambling establishment or involves the placing, receiving, or making of bets or wagers or offers to engage in the placing, receiving, or making of bets or wagers.
SDCL 22-25A-7: Except as provided in § 22-25A-15 [exempting state lottery and authorized Deadwood gambling], no person engaged in a gambling business may use the internet or an interactive computer service to bet or wager.
SDCL 22-25A-8: Except as provided in § 22-25A-15, no person may establish a location or site in this state from which to conduct a gambling business on or over the internet or an interactive computer service.
SDCL 22-25A-9: A violation of § 22-25A-7 or 22-25A-8 occurs if the violation originates or terminates, or both, in this state. Each individual bet or wager offered in violation of § 22-25A-7 or from a location or site that violates § 22-25A-8 constitutes a separate violation.
SDCL 22-25A-10: Any person who violates § 22-25A-7 or § 22-25A-8 is guilty of a felony as follows:
- For a first offense, a Class 6 felony;
- For a second or subsequent offense, a Class 5 felony.
I’m neither a lawyer nor a fantasy sports follower (at some level, aren’t all sports fantasies?), but making money on fantasy sports seems to be contingent on the result of a contest or the happening of an event not known to be certain… because if we knew that my fantasy team was going to beat your fantasy team, neither of us would bet, right? Statutes 2 and 7 indicate that AG Jackley will only be throwing the fantasy sports industry dudes in the paddywagon; the more general SDCL 22-25-1 indicates that the betting itself is a mere Class 2 misdemeanor.
AG Jackley probably has bigger fish to fry than fantasy gamers. But we’ll see if the Legislature adopts the industry-lobbied hands-off approach of the state Gaming Commission or the know-it-when-I-see-it common sense of the Governor.
And if attend the budget address today and notice and see any legislators checking sports stats on their phones during the Governor’s speech, you can bet they’re just doing research on potential fantasy sports legislation.
FWIW – My elderly mother believes that blackjack is a game of skill. You gotta be able to count and add and subtract and stuff.
Cory…the outcome of some games are certain
And Richard, if you and I set up a blackjack table at the VFW, the AG will have our hides, right?
Maybe I lack perspective, since I don’t do fantasy football, but what’s the difference between drawing three in poker based on your assessment of which cards in your hand are most likely to pay off and drawing a new tight end for your fantasy football team based on your assessment of which players have the best stats?
HOLD THE PRESSES! Jackley wins with a knock out! With a rolling pin!
Nobody expects the Attorney General’s Annual Pie Day!
http://www.keloland.com/newsdetail.cfm/attorney-generals-annual-pie-day-is-saturday/?id=188255
The crowd applauded. A few minutes later, an older gentlemen in the back nodded off.
It’s as much a gamble as throwing $20.00 in a slot machine, for sure!
jackley mentions his RAGA (Republican Attorneys General Assn), a majority of 27 states that are all about self promotion of themselves to higher office, and selling fear. Previously their fossil fuel ties were discussed.
for example, see their press page:
RNC: 5 reasons Pam Bondi is a GOP Woman to Watch
She’s A Trailblazer
Pam Bondi, a Florida native who grew up in Temple Terrace, ran a successful campaign in 2010 and became the first female attorney general in Florida’s history.
She’s a Legal Leader
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RAGA Chairman and Florida Attorney General Pam Bondi[:] “EPA overstepped its authority, again. The EPA should not be permitted to intrude unlawfully on state authority and burden farmers, businesses and landowners.”
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“Attorney General Zoeller has been a great colleague of mine and a strong advocate for the Republican attorneys general…[and] has been a strong defender of states’ rights and would be a real leader in the fight against an overreaching federal government as a member of Congress.”
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“While I believe every citizen should have access to quality health care, today’s decision in King v Burwell unfortunately chooses Obama’s government-run health care over free market patient-based solutions that are the most efficient and cost effective insurance for the millions in need.”
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RAGA…announces the addition of Samantha Dravis to its senior staff, where she will serve as Policy Director and General Counsel. Dravis will also serve as President of the Rule of Law Defense Fund (RLDF), a 501(c)(4) policy organization affiliated with RAGA. Before joining RAGA, Dravis served as legal counsel at Freedom Partners Chamber of Commerce, where she was responsible for FEC and IRS compliance and handled a range of legal issues. She was previously an associate at the law firm Taft, Stettinius & Hollister, and, in 2012, worked as elections day operations director in Michigan for the Romney for President campaign.
Prior to attending law school, Dravis was associate director for political affairs at the White House during the administration of President George W. Bush, and served as a Legislative Assistant in the office of Congressman Dan Lungren of California. Dravis is an honors graduate of the University of Notre Dame Law School, where she served as Executive Solicitation Editor of the Notre Dame Journal of Law, Ethics, and Public Policy, and the University of Kansas, where she studied political science.
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The latest example of Obama Administration overreach is here. A new regulation issued by the Environmental Protection Agency would greatly expand federal authority…. The administration is selling the rule as protecting drinking water, but make no mistake — this is about power and control.