Nevada Bans Daily Fantasy Sports

Nevada gaming regulators have placed a ban on all unlicensed daily fantasy sports sites from providing their service to people residing in the Silver State, claiming that fantasy sports gameplay is a form of sports betting.

The order filed by Nevada’s Gaming Control Board declared that such DFS websites as FanDuel and DraftKings may apply for a Nevada gaming license to legally operate as a sports pool. However, until then The Control Board ordered a “cease and desist” that forbids all DFS websites from Nevada.

Hope For Fantasy Sports in Nevada

Because daily fantasy sports services have been deemed illegal in the state of Nevada without proper licensing, all types of unlicensed operations must halt immediately. However, that does not mean that daily fantasy sports will be non-existent in the state, as sports book operators can still offer the gameplay. That being said A.G. Burnett the Gaming Control Board Chairman stated:

They should exercise discretion in participating in business associations with daily fantasy sports operators that have not obtained Nevada gaming approvals. We're not saying they can't do it. We're saying they can do this as long as they have a gaming license.

Why the Ban?

The Gaming Control Board performed an extensive analysis of DFS and determined that the form of sports gameplay constitutes sports wagering. It found that DFS involves “wagering on the collective performance of individuals participating in sporting events.” This determination of DFS websites goes against the argument that they are skill games and not a form of wagering. Additionally it does not follow that the Unlawful Internet Gambling Enforcement Act of 2006 allows for wagering on fantasy sports.

Statement From FanDuel:

FanDuel, which is one of the two Daily Fantasy Sports titans made a statement on Thursday night:

[we are] terribly disappointed that the Nevada Gaming Control Board has decided that only incumbent Nevada casinos may offer fantasy sports. This decision stymies innovation and ignores the fact that fantasy sports is a skill-based entertainment product loved and played by millions of sports fans. This decision deprives these fans of a product that has been embraced broadly by the sports community, including professional sports teams, leagues and media partners. We are examining all options and will exhaust all efforts to bring the fun, challenge and excitement of fantasy sports back to our Nevada fans. In the interim, because we are committed to ensuring we are compliant in all jurisdictions, regrettably, we are forced to cease operations in Nevada.

Statement From DraftKings:

DraftKings, another leader in the DFS world, stated:

We understand that the gaming industry is important to Nevada, and, for that reason, they are taking this exclusionary approach against the increasingly popular fantasy sports industry. We strongly disagree with this decision and will work diligently to ensure Nevadans have the right to participate in what we strongly believe is legal entertainment that millions of Americans enjoy.

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