Premium fantasy sports leagues does not constitute illegal gambling, according to a ruling in a court case decided in the New Jersey District Court.  The ruling by Judge Dennis Cavanaugh dismisses a suit brought by a lawyer turned professional gambler who sued several large operators of fantasy sports leagues, including Viacom, CBS Corp., the Walt Disney Co., ESPN and the Sporting News, reports THREsq.

The lawsuit was filed in June 2006 by Charles Humphrey who claimed that these companies operated illegal pay-for-play online fantasy sports leagues whose registration fees constituted wagers. He claimed he was entitled to recover as gambling losses all of the individual entry fees paid by participants in fantasy sport leagues he alleged were illegal.

The judge dismissed the case on procedural ground, among other things. Also, he talked about the bigger picture: “As a matter of law, the entry fees for Defendants’ fantasy sports leagues are not ‘bets’ or ‘wagers’ because (1) the entry fees are paid unconditionally; (2) the prizes offered to fantasy sports contestants are for amounts certain and are guaranteed to be awarded; and (3) Defendants do not compete for the prizes.”