going to be an interesting fight in court.

Unlawful Internet Gambling Enforcement Act of 2006. 31 USC 5301

‘‘§ 5362. Definitions
‘‘In this subchapter:
‘‘(1) BET OR WAGER.—The term ‘bet or wager’—
‘‘(E) does not include—
‘‘(ix) participation in any fantasy or simulation
sports game or educational game or contest in which
(if the game or contest involves a team or teams)
no fantasy or simulation sports team is based on the
current membership of an actual team that is a
member of an amateur or professional sports organization (as those terms are defined in section 3701 of
title 28) and that meets the following conditions:
‘‘(I) All prizes and awards offered to winning
participants are established and made known to
the participants in advance of the game or contest
and their value is not determined by the number
of participants or the amount of any fees paid
by those participants.
‘‘(II) All winning outcomes reflect the relative
knowledge and skill of the participants and are
determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple realworld sporting or other events.
‘‘(III) No winning outcome is based—
‘‘(aa) on the score, point-spread, or any
performance or performances of any single
real-world team or any combination of such
teams; or
‘‘(bb) solely on any single performance of
an individual athlete in any single real-world
sporting or other event