uNevada Says DraftKings & FanDuel Are Unlicensed Gambling, Bars Them From Operating In Stater

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• The same day that news broke of an ongoing FBI investigation into the legality of online daily fantasy sports sites like DraftKings and FanDuel, Nevada gaming regulators declared that these sites are unlicensed gambling businesses and barred them from operating in the state.

  In a notice [PDF] released Thursday afternoon by the Nevada Gaming Control Board, the regulator revealed that it has been probing the legality of daily fantasy sports [DFS] sites for “several months” and concluded that the sites’ pay-to-play tournaments constitute gambling under state law, which requires sports betting pool operators to obtain a license from the state’s Gaming Commission.

  “Therefore, since offering DFS in Nevada is illegal without the appropriate license, all unlicensed activities must cease” until either the state changes its laws or the DFS sites obtain licenses, according to the notice.

  There appears to be one way for these sites to continue operating in Nevada. The notice allows for existing sports book licensees to offer DFS gambling to their customers. But the Control Board cautions they should “exercise discretion in participating in business associations with DFS operators that have not obtained gaming approvals.”

  Sports books who want to partner with DFS sites are being advised they “should also conduct thorough and objective reviews” of their new partners’ business activities “under the laws of other states and any applicable federal laws.”

  
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by Chris Morran via Consumerist