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Lottery and casino spend impacted by Daily Fantasy Sports

The casino and lottery industries could be slowly being threatened by Daily Fantasy Sports (DFS), according to a new poll conducted by Leger, The Research Intelligence Group, pdf.

Lottery and casino spend impacted by Daily Fantasy Sports

The online survey that was conducted this month showed that of the 1,004 respondents polled, money spent on online DFS reduces the amount spent on casino games and lottery by a majority of online DFS players. More than 61 percent of DFS players, of the 15 percent of adults in the U.S. who claimed to participate in DFS this season, agree that the money spent this season on DFS decreased the amount allocated to Lottery games such as Mega Millions, Powerball or Instant Games.

Each time they play, FanDuel players spend an average of $37, narrowly edged out by the $39 spent per-play by users of DraftKings exclusively. Those figures increase significantly for those who play on both sites. In addition to lowering lottery spends, 56% of DFS players say that this season’s Fantasy Football spend has decreased their casino gambling spend. That could factor into Nevada’s ruling last week by the state’s Gaming Control Board, which found DFS constitute unlicensed gambling, and subsequently ordered DFS operators to cease operating in Nevada, joining Iowa, Louisiana, Montana, Arizona and Washington which also prohibit the activity. DFS operators will now be required to obtain a license if they are going to operate in the state.

As it stands for the moment, DFS is classified as a game of skill and under the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) not considered gambling under the purposes UIGEA. However, a broader definition of DFS as “gambling” could come into play  soon if the growing numbers of lawmakers who feel differently get their way.