Nevada Bans Unlicenced Daily Fantasy Sports Operators
The blows keep coming for DraftKings and FanDuel as they face growing challenges from all fronts. The honeymoon period for the daily fantasy sports market is certainly over and their phenomenal success and growth in the last few years has got may affected parties looking to slow down their progress.
Thursday saw Nevada regulators ban DFS providers from operating in the state unless they have a license to do so. Gaming Control Board Chairman A.G. Burnett released a statement in which he said that his staff had “suddenly” concluded that daily fantasy sports is no different from gambling and all DFS operator’s would need to possess a sportsbook licence if they wish to operate legally in Nevada.
Burnet said,” Therefore, since offering (daily fantasy sports) in Nevada is illegal without the appropriate license, all unlicensed activities must cease and desist from the date of this notice until such time as either the Nevada Revised Statutes are changed or until such entities file for and obtain the requisite licenses to engage in said activity.”
Needless to say the reaction form FanDuel and DraftKings was quick to come. FanDuel released a statement in which they said they were “terribly disappointed” at the board’s action as it benefited Nevada casinos who are allowed to operate daily fantasy sports unhindered.
In a statement FanDuel went on to say,” This decision stymies innovation and ignores the fact that fantasy sports is a skill-based entertainment product loved and played by millions of sports fans. We are examining all options and will exhaust all efforts to bring the fun, challenge and excitement of fantasy sports back to our Nevada fans.”
DraftKings who in the past month has been forced to join forces with rivals FanDuel to defend the industry said,” We understand that the gaming industry is important to Nevada and, for that reason, they are taking this exclusionary approach against the increasingly popular fantasy sports industry. We strongly disagree with this decision and will work diligently to ensure Nevadans have the right to participate in what we strongly believe is legal entertainment that millions of Americans enjoy.”
This latest challenge to the DFS sector is just another in what seemingly is an avalanche of moves aimed at stopping what has become one of the fastest growing sectors in the gaming /gambling world , depending on which side you sit.