Modern Day Bucket Shops? Fantasy Sports and Illegal Exchanges

6 Texas A&M Law Review 619 (2019).

34 Pages Posted: 7 Jun 2019

See all articles by John T. Holden

John T. Holden

Oklahoma State University

Ryan M. Rodenberg

Florida State University - College of Education; Florida State University - College of Law

Date Written: May 20, 2019

Abstract

The rapid emergence of online daily fantasy sports has raised questions as to why the contests are allowed, while other forms of gambling are restricted. Historically, “bucket shops” were banned enterprises where businesses would effectively accept wagers on whether companies’ stock prices would go up or down. There was never an underlying investment in companies themselves, only a deposit into a “bucket.” While bucket shops have largely faded, we examine whether they have disappeared in name only. Our analysis opens up another avenue for regulators beyond the antiquated skill-versus-chance evaluation typically applied to gambling activities and suggests that certain fantasy contests may run counter to Commodity Futures Trading Commission regulations. Applying this existing regulatory framework would likely enhance consumer protection and market integrity.

Keywords: daily fantasy sports, sports betting, financial regulation, gambling, bucket shops

JEL Classification: K00, K10, K19, K20, K23, K29, K30, K39, K40, K49, L50, L59, L80, L83, L89

Suggested Citation

Holden, John and Rodenberg, Ryan M., Modern Day Bucket Shops? Fantasy Sports and Illegal Exchanges (May 20, 2019). 6 Texas A&M Law Review 619 (2019)., Available at SSRN: https://ssrn.com/abstract=3391382

John Holden (Contact Author)

Oklahoma State University ( email )

201 Business Building
Stillwater, OK 74078-0555
United States

Ryan M. Rodenberg

Florida State University - College of Education ( email )

Tully Gym 1002
1114 W. Call Street
Tallahassee, FL 32306-4450
United States
850-645-9535 (Phone)
850-644-0974 (Fax)

HOME PAGE: http://education.fsu.edu/faculty-and-staff/dr-ryan-rodenberg

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States
850-645-9535 (Phone)
850-644-0974 (Fax)

HOME PAGE: http://education.fsu.edu/faculty-and-staff/dr-ryan-rodenberg

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