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Fantasy sports: Game of chance or skill?
Fantasy sports: game of chance or skill? Tom Pennington/Getty Images

Fantasy sports: Game of chance or skill?

Fantasy sports has been around for a decade, attracting a following of millions of people each year. Last year, the two biggest industry players, FanDuel and DraftKings, spent so much money lobbying states to legalize fantasy games that it impacted their profits. In November, they announced they would join forces and merge, pending approval by regulators.

While football is the predominant focus of fantasy sports, other popular North American team sports in this arena include basketball, baseball, hockey and golf.

However, fantasy sports' legality has been unclear, due to a growing controversy over whether it's a game of skill or a form of gambling. Many states consider it the latter, including Arizona, Iowa, Louisiana, Montana and Washington. Last year, eight states passed bills to legalize and regulate fantasy sports, including New York. More than a dozen other states introduced legislation in 2016 to legalize fantasy sports but failed to score.

Fantasy sports has grown annually by 12 percent on average since 2007, according to Forbes. Legal Sports Report said the industry took in $3 billion in 2015, but predicts slowing growth moving forward.

Whether you believe fantasy sports is a game of skill or chance, if you win, you do have to pay taxes.

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