Nevada Rules Daily Fantasy Sports Is Gambling (Promo Code: JIGISUP)
At some point FanDuel or DraftKings must have said something wrong to Moe Green, because the Nevada Gaming Control Board has just ruled that Daily Fantasy Sports (DFS) are gambling. That means that those two companies are operating a gambling operation without a license and have to cease and desist offering they services immediately.
Nevada Gaming Commission banning DraftKings and FanDuel is exactly like taxicab commissions banning Uber and Lyft. http://t.co/xByC7gokmh
— Eli Dourado (@elidourado) October 16, 2015
The NGCB did point out that operations that do have licenses to run a sports book in Nevada could operate DFS (say, MGM Casino), but they warned that "licensees should exercise discretion in participating in business associations with DFS operators that have not obtained Nevada gaming approvals." In other words, do it, and we'll bring Fredo in to do your waitresses two, three at a time so no one gets a drink.
"Hi there, Sheldon Willits, Nevada Gaming Commission. I'd like to discuss with you the evils of DFS." pic.twitter.com/wTrhOgez56
— Ryan Burns (@FtblSickness) October 15, 2015
Of course, it's in Nevada's best interests to find DFS is gambling, so it can get its cut. It's also in their best interest to stop the repetitive fucking FanDuel and DraftKings commercials that run back-to-back-to-back. Skepticism aside, the recent scandal has shed an unwanted light on DFS, and it's a hard argument to say it's not gambling (at least it's hard after their employees were winning six figures on their competitor sites). In fact, Nevada is the 12th state to ban some form of DFS, and the FBI and DOJ have opened investigations in DFS operations.
Don't get me wrong: DFS is gambling. However, the Nevada Gaming Commission is bought and paid for. They can go boff themselves.
— Seth Burn (@SethBurn) October 15, 2015
So all the league hosts and associated websites are shaking in their boots that the feds will decide that fantasy sports aren't games of skill, but games of chance. But the problem isn't that true fantasy sports are gambling, it's that DFS is not true fantasy sports. FanDuel and DraftKings will likely go to the various fantasy sports associations and websites to plead their case for unity to fight these decisions. Their best bet is to turn their backs and walk away from DFS, which might be hard since some have already taken their money for endorsements (right, ESPN?).
David Young has been a columnist for Sports Illustrated and ESPN and is one for SportsGrid.
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