The Economics of Our Fantasies
For outsiders looking in, it seems like fantasy sports are worlds unto themselves. And in the digital age, these worlds are used by millions of Americans, they're fast-moving, and they're worth hundreds of millions of dollars. After investigation the two biggest websites that operate these fantasy sports worlds, New York Attorney General Eric Schneiderman has determined they're illegal in this state.
In cease-and-desist notices submitted to FanDuel and DraftKings, the Attorney General's office wrote that much like a lottery, the websites mislead customers into believing they can win big, when the chances of winning are actually slim. He also cited concerns about public health and economic risks associated with gambling.
But how different are online fantasy sports games from poker or even trading on the stock market? Money Talking host Charlie Herman talks with Andrew Stern from Business Insider and Tim Fernholz from Quartz about the nuts and bolts of the multimillion dollar industry and who stands to lose if the Attorney General shuts down the two websites.
