This was a question that hit the OSN community immediately. OSN contacted Mike Sroka, CEO of OneSeason for an answer. We also got clarification on a question brought up from someone about some of the legal language around what they can and can’t do. Here is the response. Enjoy!

Q: Why did you guys build Fantasy Tycoons?  I thought this was going to be left to 3rd Parties?

A:  We have been and continue building out OneSeason to the best of our ability.  The Fantasy framework (games, metrics, etc.) required having the platform stabilized and enough players available for participants to differentiate.  We have now accomplished those things and are able to move down the dev schedule which we have prioritized as we see logical based on your feedback and operational necessity.

OneSeason and users benefit from 3rd party application development and we remain committed to opening up our system more and more.  Account level integration is a big project that requires careful consideration of the many potential implications.  Operating data helps us understand usage patterns as we pursue these goals.

Q: Is this legal within the context of the UIGEA?

A:  Much of our research has been performed into the reported federal and state case law and criminal gambling statues.  This is a relatively new and rapidly evolving area.  There are many forms of skill based games including Fantasy Sports being operated legally in the United States.  The structures of participation, display and prizes vary among these.  To fall outside the prohibition of unlawful gambling in most states, the participation in a contest must “control or influence” the outcome of the competition.  Therefore, a key to the distinction between fantasy sports and sports wagering is that fantasy sports require the consistent and recognizable involvement of the contestants.  Success is related to knowledge, attentiveness, control and skill in assessing the landscape.  On September 29, 2006, the U.S. Congress passed UIGEA.  The Unlawful Internet Gambling Enforcement Act of 2006 prohibits the transfer of funds from financial institution to an Internet gambling site, with notable exception of fantasy sports, online lotteries, and horse/harness racing.  UIGEA applies to all unlawful Internet gambling activities. 5361 § 3(9) defines “unlawful Internet gambling” as “to place, receive, or otherwise knowingly transmit a bet or wager by any means which involves the use, at least in part, of the Internet where such bet or wager is unlawful under any applicable Federal or State law in the state in which the bet or wager is initiated, received, or otherwise made.”  The fantasy sports contests offered on the Fantasy Tycoons App through OneSeason.com are games of skill with a consistent and recognizable involvement by participants.  We will continue to review and monitor activity in the space and may adjust the display and/or structure if necessary or appropriate to maintain compliance.