Nevada’s Gaming Control Board decided on Thursday that those running daily fantasy sports contests within the state now need a gambling licence to operate, or they must shut down these events.    

 

Daily fantasy sports contests have been heavily debated recently, some saying it’s gambling while others believe it’s a game of skill. The fantasy sports websites FanDuel and DraftKings are the two biggest providers of these daily contests, so the Gaming Control Board’s decision negatively affects them the most. Las Vegas held some of these companies’ largest fantasy sports tournaments, but now they will need to obtain a gambling license if they want to continue.        

 

FanDuel employees pose with a fantasy prize winner

FanDuel is being accused of allowing employees to play with insider information, making them boatloads of cash. (ocregister.com)

There are still around 45 other states that hold daily fantasy sports events without a license, but Nevada’s decision could change this. Now that these games are labeled as gambling in Nevada, other states may start to require a license to operate fantasy sports as well. Some states, such as New York, have started to look closely at the business model of FanDuel and DraftKings.     

 

On Tuesday, a lawsuit was filed against DraftKings and FanDuel with claims that some of their employees have won $6 million by playing the rival company’s games using insider information. This was just one of at least four lawsuits recently filed in Massachusetts, Louisiana, Illinois, and New York making these allegations. The Massachusetts lawsuit has gone even deeper, claiming that these companies are taking part in corrupt enterprises through the racketeering. This lawsuit could cause many states and fantasy sports players to question their business practices and the legitimacy of their games.     

 

“The biggest edge any player can have comes from having data and information,” said the Louisiana lawsuit. “DraftKings and FanDuel employees have access to both things, neither of which is public.”

 

In an attempt to help end this PR disaster, each company has told their employees that for the time being, they won’t be allowed to play daily fantasy sports. FanDuel has asked former U.S. Attorney General Michael Mukasey to looking into the company’s practices during the scandal. FanDuel also stated: “it’s our job to ensure that as our company grows, so does our ability to ensure that our fans can be confident in the sanctity and integrity of every game, every day.”

 

Should daily fantasy sports be considered gambling throughout the United States? Will more states make the decision to count this as gambling? Leave a comment or talk to me on Twitter @Karbowski_Devon.