DraftKings âstrongly disagreesâ with Nevada ruling
DFS operator withdraws from the market but promises to work to overturn the ruling
DraftKings said it âstrongly disagreesâ with the Nevada regulatorâs ruling that daily fantasy sports is gambling, a move which means operators must apply for a sports betting license if they wish to continue operating in the state. [private]
In a statement released this afternoon, DraftKings said it would abide by the ruling and withdraw from the market but will âwork diligentlyâ to ensure that Nevadans have the right to participate in what the firm âstrongly believesâ is legal entertainment.
Rival operator FanDuel also issued a statement saying it was âterribly disappointedâ with the ruling but had also withdrawn from the market.
âWe are examining all options and will exhaust all efforts to bring the fun, challenge and excitement of fantasy sports back to our Nevada fans,â the statement said.
Yesterday the Nevada regulator released the finding of its investigation into DFS and how it sits with current state gaming law.
In its ruling, the regulator also said licensed sportsbook operators should âexercise discretionâ in âparticipating in business associationsâ with unlicensed DFS sites in order to offer the 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.