DFS (Daily Fantasy Sports)

DFS occupies a distinctive position in the US gambling landscape. The two dominant operators, DraftKings and FanDuel, both built their initial businesses on DFS before pivoting heavily into sports betting after the 2018 PASPA decision. DFS operates in many US states under "game of skill" exemptions that pre-date sports betting legalization, which has given it broader geographic reach than licensed sportsbook in some periods. The product's regulatory classification is contested. Some states regulate DFS as a distinct product with its own licensing framework; others treat it as legal under game-of-skill exemptions; a few have ruled it constitutes gambling and restrict or prohibit it. Newer DFS-adjacent products like "pick'em" contests (DFS where the player picks more or fewer athletes against a projection) have triggered enforcement action from sports betting regulators who argue they're effectively prop bets. The DFS legal envelope is one of the more contentious frontiers in current US gambling policy.