Nevada regulator rules DFS is sports betting
Likes of FanDuel and DraftKings ordered to close sites and apply for a sportsbook licence in the state
Daily fantasy sports (DFS) operators such as FanDuel and DraftKings have been forced to pull the shutters down on their Nevada-facing sites after an investigation by the state regulator ruled the activity was effectively sports betting. [private]
In a statement posted yesterday, the Nevada Gaming Control Board (NGCB) said DFS involved wagering on the collective performance of individuals participating in sporting events, which under current state law required operators to possess a sportsbook license.
The NGCB first announced its investigation into daily fantasy sports back in July. Along with the Gaming Division of the Nevada Attorney General, the regulator analyzed the legality of real-money DFS pursuant to the Nevada Gaming Control Act.
The likes of FanDuel and DraftKings must now close their Nevada-facing sites with immediate effect, and apply to the Nevada Gaming Commission for a sportsbook license if they wish to continue offering their games to players in the state.
The regulator also said licensed sportsbook operators should âexercise discretionâ in âparticipating in business associationsâ with unlicensed DFS sites in order to offer daily fantasy sports contests to their players.
The ruling comes off the back of a difficult few weeks for the sector, following the DraftKings data leak scandal which has resulted in the FBI and the Department of Justice launching their own investigation into DraftKings and the wider DFS industry.
Investigations are also underway in New York, while a number of class action lawsuits against both FanDuel and DraftKings have also been filed.