Because of your loss situation and lack of effort devoted to the fantasy sports play, that would more than likely be treated as a hobby in the eyes of the IRS, so those earnings should not be reported as business income.
With the rest of the activity, much of it would depend on your intent to make a profit and the amount of time and effort you put into it. If you would be relying on the profits for your lively hood, as opposed to a side activity, that may show a profit motive. Also, the amount of money you earn would be key.
The IRS offers many qualifications to treat an activity as a business, such as performing in a businesslike manner, keeping detailed records, spending most of your time on the activity, the knowledge you need to acquire to succeed, whether you have made a profit in the past on similar activities, what your future prospects are with the activity.
By default, the IRS would probably consider all of it a hobby, so if you got audited, it would be up to you to prove otherwise.
Here is some information from the IRS:
Hobby vs Self-employed
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