October 27, 2017
Fantasy Sports Opinion Letters Are Required by Banks, Payment Processors and Credit Card Companies
Although the proposed merger between FanDuel and DraftKings (the two largest daily fantasy sports service providers) was recently called off, the fantasy sports industry continues to thrive and evolve. Over the past couple of years, over a dozen states have passed laws legalizing and regulating fantasy sports contests. In addition to these statutes, federal laws and state common law interpretations of existing gambling and lottery laws have paved a way forward for what should continue to be a robust gaming industry throughout much of the country.
In order to get up and running, credit card companies and payment processors require that fantasy sports operators obtain a fantasy sports opinion letter from a qualified law firm as a prerequisite to accepting the fantasy sports operators as clients. The fantasy sports opinion letter must establish that, upon a review of the subject fantasy sports operator’s business practices, the operator adheres to the many federal and state requirements that apply to its fantasy sports offerings.
Does My Business Need a Fantasy Sports Opinion Letter?