A fantasy sport (also known as rotisserie, roto, or owner simulation) is a game where participants act as owners to build a team that competes against other fantasy owners based on the statistics generated by the real individual players or teams of a professional sport also see daily fantasy sports. Probably the most common variant converts statistical performance into points that are compiled and totaled according to a roster selected by a manager that makes up a fantasy team. These point systems are typically simple enough to be manually calculated by a "league commissioner." More complex variants use computer modeling of actual games based on statistical input generated by professional sports. In fantasy sports there is the ability to trade, cut, and sign players, like a real sports owner.
- 1 Size of hobby
- 2 History
- 3 Legal issues in the United States
- 4 Popular sports
- 5 Picking teams instead of players
- 6 Associations
- 7 Montana Lottery to offer Fantasy Sports Wagering
- 8 See also
- 9 References
- 10 External links
Size of hobby
It's estimated by the Fantasy Sports Trade Association that 41 million people  age 12 and above in the U.S. and Canada played fantasy sports in 2014. Participation has grown over the years, though USA participation for 2014 is consistent with the past few readings. However, participation is up in Canada mostly due to Hockey.
A prior study conducted by the FSTA in 2013, showed 33.5 million people age 12 and above in the U.S. with the 2011 FSTA Study showing 3.1 million people in Canada played fantasy sports. A 2006 study showed 22 percent of U.S. adult males 18 to 49 years old, with Internet access, play fantasy sports. Fantasy Sports is estimated to have a $3–$4 Billion annual economic impact across the sports industry.
The hobby has also moved beyond the U.S. Fantasy leagues for soccer, cricket (e.g. Matchup Cricket) and other sports have come up. For example, according to a 2008 study by Ipsos, the number of British fantasy sports players aged 16–64 is estimated to range between 5.5 and 7.5 million. Of those, 80 percent of these players participate in fantasy soccer.
Early history - pre-"rotisserie"
The concept of picking players and running a contest based on their year-to-date stats has been around since shortly after World War II, Wilfred Winkenbach devised fantasy golf in the latter part of the 1950s, in which each player selected a team of professional golfers and the person with the lowest combined total of strokes at the end of the tournament would win. Golf is a simple fantasy game to administer and keep tabs on, since each participant is concerned only with the scores of his or her team members without anything else to complicate it. However, it was never organized into a widespread hobby or formal business.
In 1960, Harvard University sociologist William Gamson started the "Baseball Seminar" where colleagues would form rosters that earned points on the players' final standings in batting average, RBI, ERA and wins. Gamson later brought the idea with him to the University of Michigan where some professors played the game. One professor playing the game was Bob Sklar, who taught an American Studies seminar which included Daniel Okrent, who learned of the game his professor played. At around the same time a league from Glassboro State College also formed a similar baseball league and had its first draft in 1976.
While those two leagues focused on baseball, it may be football that produced the first version of the hobby. The Greater Oakland Professional Pigskin Prognosticators League began in the early 1960s with eight teams. George Blanda was the first player taken in the first draft in 1963.1963 draft results
Modern founding - "La Rotisserie"
The landmark development in fantasy sports came with the development of Rotisserie League Baseball in 1980 (although research suggests a team of players from Southern New Jersey have been running the same style league since 1976 making them the first Rotisserie players). Magazine writer/editor Daniel Okrent is credited with inventing it, the name coming from the New York City restaurant La Rotisserie Francaise where he and some friends used to meet and play. The game's innovation was that "owners" in a Rotisserie league would draft teams from the list of active Major League Baseball players and would follow their statistics during the ongoing season to compile their scores. In other words, rather than using statistics for seasons whose outcomes were already known, the owners would have to make similar predictions about players' playing time, health, and expected performance that real baseball managers must make.
Because Okrent was a member of the media, other journalists, especially sports journalists, were introduced to the game. Many early players were introduced to the game by these sports journalists, especially during the 1981 Major League Baseball strike; with little else to write about, many baseball writers wrote columns about Rotisserie league. A July 8, 1980 New York Times Article titled "What George Steinbrenner is to the American League, Lee Eisenberg is to the Rotisseries League" set off a media storm that led to stories about the league on CBS TV and other publications.
In March 1981, Dan Okrent wrote an essay about the Rotisserie League for Inside Sports called "The Year George Foster Wasn't Worth $36."  The article included the rules of the game. Founders of the original Rotisserie league published a guide book starting in 1984. In 1982, Ballantine published the first widely available Bill James Abstract, which helped fuel fantasy baseball interest. Fantasy fans often used James' statistical tools and analysis as a way to improve their teams. James was not a fantasy player and barely acknowledged fantasy baseball in his annual Abstract, but fantasy baseball interest is credited with his strong sales.
In 1988, Peter Olenoski and Joseph Kikosicki formed the Managerial Baseball League "The Reality of the Fantasy" which they pioneered the first 5x5 format by accounting for Runs and Strikeouts. They went on to develop their own statistical program since there were no fantasy statistic companies that could accommodate up to 16 teams. What made their Managerial Baseball League so unique is that they paralleled their rosters just like MLB with 9 position players (one at each position and any extra player on the bench for the DH), 5 starting pitchers, 3 starting relievers, and 8 players on their bench - the reality being that every player on their roster does not get to play. To date, the Managerial Baseball League is the largest league in the world with 18 teams participating and expansion to 40-man rosters in September.
Soon the hobby spread to other sports as well and by 1988, USA Today estimated that five hundred thousand people were playing. The EMSBL (East Meadow Strat-o-Matic Baseball League), founded in 1972 started its 43rd consecutive year of play in May 2014 and is believed to be the oldest continuously playing fantasy sports league in the world.
In the few years after Okrent helped popularize fantasy baseball, a host of experts and businesses emerged to service the growing hobby. Okrent, based on discussions with colleagues at USA Today, credits Rotisserie league baseball with much of USA Today's early success, since the paper provided much more detailed box scores than most competitors and eventually even created a special paper, Baseball Weekly, that almost exclusively contained statistics and box scores.
The first experts on record as having written fantasy baseball articles for USA Today were John Benson, Alex Patton, and Ron Shandler. Perhaps the most well-known fantasy baseball expert in the late 1980s and early 1990s was Benson, who published his first fantasy baseball book in 1989. Later that year Benson developed the first draft-simulation program, software that he still sells today.
Patton published his first book ('Patton's 1989 Fantasy Baseball League Price Guide ") in 1989 and his dollar values were included in USA Today Baseball Weekly's fantasy annual throughout the 1990s.
Ron Shandler published his "Baseball SuperSTATS" book in November 1986. At first the book wasn't meant for fantasy baseball fans, but rather as a book of Sabrmetric analysis.
But it wasn't just baseball that saw new businesses and growth. Fantasy Football Index became the first annual fantasy football guide in 1987. Fantasy Sports Magazine debuted in 1989 as the first regular publication covering more than one fantasy sport. Fantasy Football Weekly was launched in 1992 (later becoming Fanball.com) and had $2 million in revenue by 1999. A large number of companies emerged to calculate the stats for fantasy leagues and primarily send results via fax.
In 1993, USA Today included a weekly columnist on fantasy baseball, John Hunt, and he became perhaps the most visible writer in the industry before the rise of the Internet. Hunt started the first high-profile experts league, the League of Alternate Baseball Reality which first included notables as Peter Gammons, Keith Olbermann and Bill James.
The hobby continued to grow with 1 million to 3 million playing from 1991 to 1994.
The seminal moment for the growth of fantasy sports was the rise of the Internet in the mid-1990s. The new technology lowered the barrier to entry to the hobby as stats could quickly be compiled online and news and information became readily available.
In early October 1995, what would become a popular fantasy hockey website was released by Molson Breweries. It was part of the company's "I am Online" strategy and centred on its "I am Canadian" advertising campaign; it would focus on music, entertainment and hockey. The website allowed visitors to register accounts and participate in hockey leagues of nine teams in which the visitor would be the general manager for one of those teams. The general manager would draft a team from a pool of NHL players, and could later negotiate trades with other teams in the league. Disputes would be arbitrated by a commissioner by email. The site included daily updates of NHL statistics, and also featured content from the Hockey Hall of Fame. On 24 May 1996, Molson Breweries won the International Digital Media Award for best website of 1995.
While several fantasy businesses had migrated to the internet in the mid-1990s, the watershed era for online fantasy sports was in 1997 when two web sites made their debut that forever changed the fantasy sports industry: Commissioner.com and RotoNews.com.
Commissioner.com launched on January 1, 1997 and first offered a fantasy baseball commissioner service that changed the nature of fantasy sports with real-time stats, league message boards, daily updated box scores and other features—all for $300 per league. Commissioner.com was sold to SportsLine late in 1999 for $31 million in cash and stock in a watershed moment for the fantasy industry. The sale proved fantasy sports had grown from a mere hobby to big business. By 2003, Commissioner.com helped SportsLine generate $11 million from fantasy revenue. Commissioner.com is now the fantasy sports engine behind the CBSSports.com fantasy area (after SportsLine was sold to CBS in 2004).
RotoNews.com also launched in January 1997 and published its first player note on February 16, 1997. RotoNews revolutionized how fantasy sports information was presented on the web with the innovation of the "player note" which were snippets of information every time a player got hurt, traded, benched or had a news event that impacted his fantasy value - all search-able in a real-time database. Most sites today follow how RotoNews had a "news" and "analysis" element to each player update. Within two years RotoNews had become one of the top ten most trafficked sports sites on the web, according to Media Metrix, ranking higher than such sites as NBA.com. RotoNews.com was sold to Broadband Sports in 1999 and later survived as RotoWire.com.
It wasn't long before the larger media players got involved. Yahoo.com added fantasy sports in 1999 and offered most of its games for free - a largely new business model for fantasy sports. A trade group for the industry, the Fantasy Sports Trade Association was formed in 1998.
Other entries during this era included Fanball.com, launched in 1999 by the parent company of Fantasy Football Weekly.
The first survey of the fantasy sports market in the U.S. in 1999 showed 29.6 million people age 18 and older played fantasy games. However, that figure was reduced in later years when it was determined the survey also included people who play NCAA bracket pools, which are not exactly fantasy sports (where you pick individual players).
While fantasy sports were fueled by the dot-com boom of the Internet, there was a turbulent period when many of the high-flying Internet companies of the era crashed in 2001. Fanball.com went bankrupt in 2001 (later to re-emerge in 2001). RotoNews.com's parent company, Broadband Sports, went belly up in 2001. The company would re-emerge as RotoWire.com.
There were also wide variations on business models. RotoNews.com launched the Web's first free commissioner service in 1998, quickly becoming the largest league management service. Yahoo.com became the first major media company to offer games for free in 1999. Due to the rising competition, Commissioner.com, which had charged as much as $300, offered its commissioner services for free starting with football in 2000.
Two years later the trend reversed. Sportsline moved back to a pay model for commissioner services (which it largely still has today). TheHuddle.com, a free site since 1997, started to charge for information. RotoWire.com moved from a free model to a pay model in 2001 as well.
Despite the economic instability, fantasy sports started to become a mainstream hobby. In 2002, the NFL found that average male surveyed, for example, spent 6.6 hours a week watching the NFL on TV; fantasy players surveyed said they watched 8.4 hours of NFL per week. "This is the first time we've been able to demonstrate specifically that fantasy play drives TV viewing," said Chris Russo, the NFL's senior vice president. The NFL began running promotional television ads for fantasy football featuring current players for the first time. Previously fantasy sports had largely been seen in a negative light by the major sports leagues.
Due to the growing popularity of season long fantasy sport leagues, a new platform, daily fantasy sports, emerged with great success. Websites such as Draftkings, Draftstreet and Fanduel have offered up to one million dollar prizes for one day contests thanks to its growing userbase and popularity.
Fantasy sports continued to grow with a 2003 Fantasy Sports Trade Association survey showing 15 million people playing fantasy football and spending about $150 a year on average, making it a $1.5 billion industry. In 2014 the genre continues to gain mainstream legitimacy with NBC Sports announcing the creation of a partnership with daily fantasy sports website Rotogrinders for daily fantasy content for their online properties.
New fantasy game genres
With the growth of the industry, fantasy has branched out to include non-sports related games focused on politics, sales, celebrity gossip, movies, and reality TV.
Additionally, new types of fantasy sports games have continued to evolve. In particular, starting in 2006 a number of operators offered daily draft games where players can draft, play and win (or lose) within a single day. Dream11.com was the first to introduce the Freemium model in December 2011. Popularity of cricket in India has ensured increased users on the site. A few of the existing players in the fantasy cricket domain in India are offering a 'Cricket Stock Exchange', which is an online trading game working on the principles of Stock Exchange. It is still unclear whether these types of games will see mainstream adoption.
Legal issues in the United States
STATS, Inc. vs. NBA
In 1996, STATS, Inc., a major statistical provider to fantasy sports companies, won a court case, along with Motorola, on appeal against the NBA in which the NBA was trying to stop STATS from distributing in game score information via a special wireless device created by Motorola. The victory played a large part in defending other cases where sports leagues have tried to suppress live in-game information from their events being distributed by other outlets. The victory also accelerated the market for real-time statistics which were largely fueled by the growth of the fantasy sports industry.
CDM vs. MLBAM
The development of fantasy sports produced tension between fantasy sports companies and professional leagues and players associations over the rights to player profiles and statistics. The players associations of the major sports leagues believed that fantasy games using player names were subject to licensing due to the right of publicity of the players involved. Since the player names were being used as a group, the players had assigned their publicity rights to the players association who then signed licensing deals. During the 1980s and 1990s many companies signed licensing deals with the player associations, but some companies did not. The issue came to a head with the lawsuit of Major League Baseball Advanced Media (MLBAM), MLB's Internet company, vs. St. Louis-based CBC Distribution and Marketing Inc., the parent company of CDM Sports. When CBC was denied a new licensing agreement with MLBAM (they had acquired the rights from the baseball players' association) for its fantasy baseball game, CBC filed suit.
CBC argued that intellectual property laws and so-called "right of publicity" laws don't apply to the statistics used in fantasy sports. The FSTA filed an amicus curiae in support of CBC, also arguing that if MLBAM won the lawsuit it would have a dramatic impact on the industry, which was largely ignored by the major sports leagues for years while a number of smaller entrepreneurs grew it into a multi-billion dollar industry, and a ruling could allow the MLBAM to have a monopoly over the industry.
"This will be a defining moment in the fantasy sports industry," said Charlie Wiegert, executive vice president of CBC. "The other leagues are all watching this case. If MLB prevailed, it just would have been a matter of time before they followed up. Their player unions are just waiting for the opportunity."
CBC won the lawsuit as U.S. District Court Judge Mary Ann Medler ruled that statistics are part of the public domain and can be used at no cost by fantasy companies.
"The names and playing records of major-league baseball players as used in CBC's fantasy games are not copyrightable," Medler wrote. "Therefore, federal copyright law does not pre-empt the players' claimed right of publicity."
The 8th Circuit Court of Appeals upheld the decision in October 2007. "It would be strange law that a person would not have a First Amendment right to use information that is available to everyone," a three-judge panel said in its ruling.
The U.S. Supreme Court upheld the 8th Circuit Court's decision by declining to hear the case in June 2008.
Unlawful Internet Gambling Enforcement Act of 2006
The Unlawful Internet Gambling Enforcement Act of 2006, which was an amendment to the larger and unrelated SAFE Port Act, included "carve out" language that clarified the legality of fantasy sports. It was signed into law on October 13, 2006 by President George W. Bush. The act makes transactions from banks or similar institutions to online gambling sites illegal, with the notable exceptions of fantasy sports, online lotteries and horse/harness racing.
The bill specifically exempts fantasy sports games, educational games, and other online contests that meet certain conditions. A participant's team (if any) must not be "based on the current membership of an actual team." Outcomes must "reflect the relative knowledge and skill of the participants and [be] determined predominantly by accumulated statistical results of the performance of individuals (athletes in the case of sports events) in multiple real-world sporting or other events." All prizing must be determined in advance of the competition and can not be influenced by the fees or number of participants.
- Fantasy baseball
- Fantasy cricket
- Fantasy football (American)
- Fantasy football (Australian rules football)
- Fantasy football (Association)
- Fantasy basketball
- Fantasy golf
- Fantasy hockey
- Fantasy Auto Racing
- Fantasy League of Legends
- Fantasy Rugby league
- Fantasy Rugby union
- Fantasy Sports stock simulations
- Fantasy professional wrestling
- Fantasy Congress
- Fantasy Surfing
- Daily Fantasy Sports
- Fantasy F1
- Fantasy MMA
- Fantasy Boxing
- Fantasy esports
Picking teams instead of players
One way to play fantasy sports is to have each person pick teams from a league instead of players. There is a predetermined number of rounds and there is a predetermined number for how many times each team gets picked. When a person takes a turn, the player picks exactly one team and then it is the next person's turn to pick. Players may pick a team more than once, as long as that team is still available at least once.
An example of this type of fantasy league is using the 30 teams in Major League Baseball and having 12 players. Each person gets 10 teams total, counting repeats as many times as they happen. Each team gets picked exactly 4 times (12 players × 10 teams per player = 120 and 30 teams × 4 picks per team = 120). This calculation shows that there will be 120 total picks after exactly 10 rounds.
Each individual's score is determined by adding up the total number of regular season and postseason wins by the teams that they picked. If a team was picked more than once, that team's number of wins gets added into the calculation the number of times that the team was picked.
Once the postseason starts, players are awarded points based on their teams that made it to the postseason. Predetermined numbers of points are set to give to people based on the spots in the postseason that their teams had to begin the postseason with: the best record in the league, the second-best division winner in the league, the third-best division winner in the league, the first wild card spot, and the second wild card spot. Predetermined points are also given out based on the postseason results, such as League Championship Series losing teams, the World Series losing team, and the World Series winning team.
Once all points are added up for everyone, the final rankings are based on point totals, going from highest to lowest. (Predetermined tiebreakers would have to be set to avoid ties for any place.)
The Fantasy Sports Trade Association was formed in 1997 to represent the growing industry. Beginning in 2000, the FSTA has honored past members and contributors to fantasy sports with induction into its Hall of Fame. As of 2014, 17 men have been inducted into the FSTA Hall of Fame. They are:
- 2000: Daniel Okrent, Inventor of Rotisserie Baseball
- 2000: Glenn Waggoner, Editor, Rotisserie Baseball Handbook
- 2000: Cliff Charpentier, Fantasy Sports Inc.
- 2001: Greg Ambrosius, STATS, Inc.
- 2001: John Dewan, STATS, Inc.
- 2001: Charlie Wiegert, CDM Fantasy Sports
- 2001: Bill James, Author and Sabermetrician
- 2002: John Benson, Diamond Analytics Corporation
- 2004: Peter Pezaris, Daedalus World Wide Corporation
- 2006: Ron Shandler, Baseball HQ
- 2011: Peter Schoenke, Rotowire.com
- 2011: Bill Winklebach, Founder, GOPPPL Fantasy Football League
- 2011: Rick Wolf, Full Moon Sports Solutions
- 2012: Matthew Berry, The Talented Mr. Roto
- 2013: Paul Charchian, LeagueSafe
- 2013: Glenn Colton, Dentons, U.S.
- 2014: Rob Pythian, SportsData, LLC
Montana Lottery to offer Fantasy Sports Wagering
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