Its not illegal as Sean suggests ... these are deemed games of skill as per their press release when the crappy laws were put in place:
Legality of Skill Games and Fantasy Sports Contests Unchanged by Legislation
TORONTO, ONTARIO--(CCNMatthews - Oct. 6, 2006) - Following Saturday's passage of the Unlawful Internet Gambling Enforcement Act (UIGEA), FUN Technologies, (TSX:FUN)(AIM:FUN), one of the world's leading online and interactive casual games providers, announced it would continue to operate business as usual in its FUN Games and FUN Sports divisions. The legislation includes a specific allowance for fantasy sports contests, such as those offered by FUN Sports, and permits online competitions in games of skill, such as those offered by FUN Games, to continue in the U.S. states in which they have always been legal. Skill games have always been legal in the states in which FUN Games operates.