Nevada regulators have ordered daily fantasy sports sites like DraftKings and FanDuel to shut down, saying they can't operate in the state without a gambling license.
The decision comes amid growing backlash by investigators and regulators over the sites, which have grown in popularity in the past year.
The sites insist they are skill-based games and not chance-based wagers, and are therefore not subject to gambling regulations. Customers pick daily lineups of players in professional football, basketball, hockey and more, and they compete with other players to earn the most points and win money - in some cases more than $1 million.
The state's Gaming Control Board issued a notice Thursday saying the sites must stop offering their contests to Nevada residents effective immediately. Operators face felony fines and 10 years in prison.
Regulators say the sites can apply for licenses. (AP)
American Gaming Association (AGA) President and CEO Geoff Freeman released the following statement after the Nevada Gaming Control Board (NGCB) issued a notice to Nevada gaming licensees about the legality of daily fantasy sports:
“The casino gaming industry has repeatedly called for greater legal clarity on daily fantasy sports. We appreciate that the Nevada Gaming Control Board has provided that clarity as well as a roadmap for DFS companies and casinos to provide popular fantasy sports within Nevada borders. We will continue to seek additional clarity in other jurisdictions, as eliminating ambiguity is in the best interests of all parties, including consumers.”
Nevada Senator Harry Reid released the following statement after the Nevada Gaming Commission banned unlicensed daily fantasy sports websites from operating in the state:
“I fully support the Nevada Gaming Commission's determination that daily fantasy sports is gambling. We have seen reports of insider betting and of young people gambling thousands of dollars a day with these unregulated companies. Until now, the websites offering daily fantasy sports have been operating in what is at best a legal gray area. Yesterday, the Nevada Gaming Commission, which has more experience regulating gaming than any other entity in the country, made it clear that these daily fantasy gambling companies must be regulated and held to the same high standards as other gaming operators in the state. Unless more states follow, we are going to see more corruption and families torn apart because of unregulated, illegal gambling.”
