Abstract
Pay-to-play (P2P) fantasy sports participation is growing rapidly. The combination of its resemblance to gambling and its exemption from regulation creates a significant public policy concern. For a sports fan with no interest in gambling, P2P fantasy sports may appear to be a safe and legal alternative. This research investigates that assumption by examining the relationship between sports fanship, fantasy sports, and gambling. First, two-part models are assessed to determine the likelihood of participation in P2P fantasy sports, sports betting, and online gambling and, conditionally, the amount spent on each of the three by those who participate. Second, a moderated-mediation model investigates the direct and indirect effects of fanship on P2P fantasy sports, sports betting, and online gambling. Results indicate that playing P2P fantasy sports leads to higher levels of sports betting and online gambling. Fans high in materialism engage directly in sports betting, but fans low in materialism engage through fantasy sports. Finally, the authors propose recommendations for public policy changes and private intervention.
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