Fantasy sports show potential for Web poker

The conference will bring together the leaders of a billion-dollar industry that allows people to compete against one another through the Internet in a game of skill.

"We're very comfortable these days," the trade association president said. "We've been growing at a ridiculous rate. ... We have grown by 2 million people a year since the Internet took off in the mid-1990s."

It's a lucrative business, with website-hosting fees and entry fees, websites and television and radio programs dedicated to player strategy, and books and magazines and newsletters. The industry has grown to the point that gaming companies are firmly aboard the bandwagon, bringing even more players into the action. Participants can win prize money from the comfort of their home playing against people from across the country.

A vision for the Web poker industry? Sure. But it's reality for the fantasy sports industry. Its success, and the barriers it has broken through, highlight the potential of interstate Internet poker.

The quotes above are from Paul Charchian, president of the Minneapolis-based Fantasy Sports Trade Association, which will hold its annual convention at The Mirage from Monday through Wednesday. Fantasy sports let fans draft their own teams from the rosters of professional leagues, then compete against other fans, piling up points based on their players' performances. Fantasy sports leagues typically require a buy-in, with the champion claiming most or all of the prize money. Most fantasy sports leagues are run through websites and cellphone apps that post scores in real time and allow players to manage their rosters.

At one point, the federal government was prepared to sink its fangs into the business. Some regulators and lawmakers considered the games illegal gambling. But industry lobbyists helped Congress understand that success in fantasy sports, while subject to elements of chance, requires great skill. And so when Congress banned online gambling - including poker - in 2006, the legislation contained a specific exemption for fantasy sports.

"Fantasy sports is not gambling. We've cleared that hurdle," Mr. Charchian told the Review-Journal's Chris Sieroty.

The Web poker industry is still working on a federal solution that would allow it to rival online participation fantasy sports. Like fantasy sports, poker is a game of skill enjoyed by millions of people. But the only way to play it online is through intrastate sites. Nevadans can only compete against other Nevadans. It's a limited player pool with limited business potential.

Legislation championed by Gov. Brian Sandoval in his State of the State address, which would allow Nevada to enter compacts with other states to share players, is one way to clear the hurdle of the federal ban. The 2013 Legislature should make it a priority.

The potential is there. Just look at fantasy sports.