To have an understanding of Daily Fantasy Sports, or DFS, you first have to understand what fantasy sports are. From the name alone, you might think the name refers to sports or events that are fictional, like simulated horse races. In fact, fantasy sports are based on real-life games and fixtures on a wide variety of sports.

Fantasy sports allow fans to use their knowledge of their team’s league to formulate their own squad of players, or a “dream team” of sorts. The fantasy element applies when it comes to the players’ pricing, scoring, and the fact that the teams assembled will never actually exist.

One popular fantasy game is UK soccer’s Fantasy Premier League. Fans, or “managers”, are given a budget of £100 million to assemble a squad of 15 players: 11 first team players and four substitutes. The company that runs the website uses complex analytical tools to set an individual price for each player, which can be anywhere from £4m to £12m, or in some cases even more. The price of the player reflects the likelihood of them scoring points based on both their real-life ability and their scores in previous seasons.

So, what’s the difference between the Fantasy Premier League and DFS? With the former, players compete in leagues over the course of a season. This means it can take close to a year to determine the winner. With DFS, you pay an entry fee in the morning and the contest can be settled, with cash prizes, by the evening. It combines the speed of a single day’s sport with the appeal of fantasy sports.

In recent years, DFS has seen an explosion in popularity, above all in the United States, and with it came a long argument about whether paid fantasy contests are a game of skill or a form of gambling. The answer still depends on the state you live in.

DFS is a very modern phenomenon, as is Bitcoin (BTC). Both appeal to a younger generation looking to do things differently, so it is no surprise that crypto holders ask where they can play DFS with Bitcoin. Read on for the legal picture, how DFS contests work and how to keep it fun.

How to Bet on DFS With Bitcoin

Before you think about Bitcoin, check whether paid DFS is allowed where you live. At federal level, the Unlawful Internet Gambling Enforcement Act of 2006 carves certain fantasy sports contests out of its definition of a bet, provided the prizes are fixed in advance and the results reflect the participants’ skill across several real-world events (31 U.S.C. § 5362). That exemption does not make DFS legal everywhere. Each state applies its own gambling laws, and they fall into roughly three groups:

• States that regulate DFS. Operators have to register or be licensed, pay fees and follow consumer-protection rules. New York is a clear example: the New York State Gaming Commission registers interactive fantasy sports operators and publishes the list of who is permitted.
• States that allow DFS without a specific licensing regime, where contests run under general law and the operator’s own terms.
• States where paid DFS is restricted or treated as illegal gambling. Here the major operators exclude players from paid contests.

The fastest way to find out which group your state is in is to check your state gaming regulator’s website, or the location check that every legitimate DFS operator runs when you try to enter a paid contest.

Now the Bitcoin part. Fantasy sites that take crypto deposits and ask no questions about your location are not a way round state law. If a DFS operator must be registered in your state and is not, it is operating illegally there, and you have no regulator to turn to if it withholds your winnings.

If a DFS site says it accepts crypto, check two things on its own website before you deposit: its banking or payments help page, which should describe exactly what it accepts and how withdrawals work, and its registration or licence in your state. If you cannot confirm both, do not deposit. For most players the simplest legal route is to sell crypto for dollars through a regulated exchange (our guide to buying Bitcoin explains how exchanges and wallets work) and fund a registered DFS account by card or bank transfer.

Welcome offers in DFS usually take the form of free contest entries or deposit matches that you unlock by playing a set amount in entry fees. As with any promotion, the terms decide its real value, so read them before you opt in.

Playing DFS may start off as a novelty, but it can quickly become a daily habit. If you think you might be playing a fair bit, use the tools that registered operators provide: deposit limits, entry limits, time-outs and self-exclusion.

How Daily Fantasy Sports Contests Work

Every DFS contest follows the same basic pattern:

1. Pick a slate. A slate is a set of real games on one day, or one weekend in the NFL.
2. Draft within a salary cap. Each athlete has a price, and your lineup must fit under the cap and fill every position.
3. Score points. Your players earn fantasy points from their real statistics: yards and touchdowns, points and rebounds, hits and strikeouts.
4. Get ranked. In head-to-head and 50/50 contests, roughly half the field wins a modest prize. In large tournaments, a small share of entries wins and the top prizes are big.

Remember that the operator keeps a share of every entry fee, and that you are competing against other players, some of whom enter many lineups built with research tools. For most people, DFS is entertainment rather than income.

DFS With Bitcoin: Age Limits and Help

The minimum age for paid DFS is set by each state and by the operator’s terms. It is 18 in many states and higher in some, so check the rules where you live before you sign up. Registered operators verify your age and identity.

If fantasy contests are taking more of your money or time than you meant, call or text 1-800-MY-RESET (1-800-697-3738), the free National Problem Gambling Helpline run by the National Council on Problem Gambling. It covers every state and is open around the clock.

References

• 31 U.S.C. § 5362, Unlawful Internet Gambling Enforcement Act definitions (fantasy sports exemption)
• New York State Gaming Commission, Interactive Fantasy Sports
• National Council on Problem Gambling, National Problem Gambling Helpline