Friday, October 16, 2015

Nevada Bans Unlicensed Daily Fantasy Sports

The Nevada Gaming Control Board has ruled that daily fantasy sports (DFS) is a form of gambling, and needs to be licensed to be legal. Unlicensed operators, most notably DraftKings and FanDuel, have been effectively shut down in the state of Nevada as of today.

Licensed operators in Nevada (the sportsbooks) can offer daily fantasy, but they largely don't have the technology yet. I wonder if some of the bigger players like William Hill and CG Technology will step up to the plate.

The ruling brings daily fantasy sports to an interesting crossroads. DraftKings and FanDuel could probably get licensed in the state of Nevada if they really wanted to, but their entire business hinges on the premise that they don't offer gambling.

If they admitted they offer gambling by getting a Nevada license that would probably put them in hot water with other states, not to mention the sports leagues themselves.

Now the question is whether other states will follow Nevada's lead and ban DFS, or is Nevada the only state that really cares enough to do anything since they want to protect their other gambling interests.

I look forward to the day when all sports gaming is legal in every state (well, except for Utah) and we don't have to go through with this "is it gambling" charade.