Nevada regulator launches investigation into DFS
Head of the regulator raises concerns over player protections and whether daily fantasy sports sites have the âappropriate approvalsâ to operate in the state
The Nevada Gaming Control Board has told eGR North America it is trying to establish whether daily fantasy sports sites such as DraftKings and FanDuel have the appropriate approvals to operate in the state. [private]
Despite a carve-out in the Unlawful Internet Gambling Enforcement Act (UIGEA) 2006 classifying fantasy sports as a game of skill, head of the Nevada regulator A.G Burnett (pictured) told eGR NA he had concerns over player protections and whether state gambling laws were being complied with.
âIn order to offer a gambling game into Nevada, youâve got to have the appropriate approvals,â Burnett said. âUIGEA is a payment-processing statute that contained language regarding certain types of these activities, but the important factor is that it does not affect state gaming laws; they essentially trigger the applicability of most federal gaming laws,â he added.
Burnett said the regulator âhadnât reached any decisionsâ yet and welcomed input from various stakeholders in the industry. He also said the legal investigation had nothing to do with regulating and taxing daily fantasy sports operators.
Despite the UIGEA carve-out, five states including Iowa and Washington have blocked daily fantasy sports sites from operating within their borders. A recent push by the industryâs trade body â the Fantasy Sports Trade Association â has seen lobbyists deployed in each state to try and change the status quo.
The outcome of Nevadaâs legal investigation could have a significant impact on the industry, starting a domino-effect of other regulators delving deeper into the legal status of daily fantasy sports. As yet, however, Texas is the only state where a bill has been tabled seeking to regulate, license and tax the sector.