Page 6 - LA Games Conference Materials

Fantasy Sports and eSports Law Practice
As part of its industry-leading Social Media and Games Team, Sheppard Mullin has a particular focus on the cutting-edge legal issues with fantasy sports and eSports.
Fantasy Sports
Legality of Business Models — As the industry adopts more innovative business models, including daily fantasy sports, the need to carefully consider federal and state legal issues increases. Sheppard Mullin has numerous attorneys who routinely advise clients on the legality of evolving business models that require the application of federal and state lottery and gambling laws. For many such clients, our attorneys have conducted a 50 state analysis and advised on the legality of fantasy sports business models and game features. Of note:
• Few states currently have laws that expressly address fantasy sports, but this is changing. States such as Maryland, Kansas and Montana have passed specific laws and we anticipate others will follow; for example, Nevada’s Gaming Control Commission is investigating the legality of daily fantasy sports. We help clients stay up to date on these legislative changes;
• Many businesses mistakenly believe that The Unlawful Internet Gambling Enforcement Act (“UIGEA”), a federal statute that has an exception that exempts fantasy sports from its coverage, renders all fantasy sports offerings legal; this is clearly not the case as the exception applies only if specific conditions are met and it does not affect the scope of state law or other federal laws (such as the Wire Act, the Professional & Amateur Sports Protection Act, the Illegal Gambling Business Act, the Travel Act, and potentially others). Adherence to the conditions is important;
• Certain state’s attorneys general have opined on the legality of fantasy sports; and
• Many factors may impact the legality of a given business model and it is important to assess all of the factors.
Digital and Virtual Currency Issues — some fantasy sites use digital or virtual currency instead of real money, believing that this will avoid legal issues. This is not always the case. Our attorneys advise clients on the legal issues with digital and virtual currency, including bitcoin and other cryptocurrencies, and how they may impact the legality of business models.
IP Issues — Sheppard Mullin’s game team has one of the deepest and broadest groups of IP lawyers in the country, and routinely advises clients on the most advanced IP issues with fantasy sports.
• Patents — Many of the technologies, processes and business models resulting from the rapid innovation in the fantasy sports industry are patentable; we help companies assess the unique aspects of their fantasy sports offerings, develop and implement patent filing strategies and handle patent licenses, sales/acquisitions and patent litigation.
• Copyrights/Trademarks — Various aspects of fantasy sports can implicate copyright and trademark issues. We help fantasy sports companies develop and implement strategies to protect their own copyright and trademark rights and minimize the likelihood of infringing others.
• Immigration Law — The U.S. recognizes eSports players as professional athletes which facilitates the ability to get visas to enter the country to play in U.S. tournaments.
Beijing | Brussels | Century City | Chicago | Del Mar | London | Los Angeles | New York Orange County | Palo Alto | San Diego | San Francisco | Seoul | Shanghai | Washington, D.C. www.sheppardmullin.com