On Tuesday, the state of New York issued a cease-and-desist letter to the major daily fantasy sports operators, saying their activity is a form of online gambling and is illegal as a result.
FanDuel and DraftKings say they will fight the order, saying that daily fantasy sports is a game of skill and therefore not gambling.
That leads us to the central question: Is it gambling?
Regulators and casinos say yes because there is chance involved, and because people are betting on the outcome of sporting events. The only difference is whether people bet on the outcomes of a team versus an individual player, but the fundamental activity is still the same.
The daily fantasy site operators say their games are not gambling, because there is skill involved in picking the right lineups.
Some people will point to the fact that just 1 percent of participants win the vast majority of profits, saying that's because they are very skilled. Yet at the same time, these same people win a lot because they bet a lot; they enter hundreds of lineups, so a lot of their wins come from big participation.