FanDuel, DraftKings temporarily suspend operations in Nevada

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[Editor’s note: FanDuel is an advertiser of PFT and PFT Live on NBC Sports Radio. Also, NBC Sports has an equity stake in FanDuel.]

It’s no surprise Nevada has taken steps to protect its gambling industry against daily fantasy sports. The only surprise is that it took Nevada so long to act.

In response to a directive from the Nevada Gaming Control Board that daily fantasy operators should “cease and desist” doing business in Nevada without the appropriate license to do so, both FanDuel and DraftKings have temporarily suspended operations in the state, according to ESPN.com.

“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,” Justin Sacco, director of communications for FanDuel, said in a press release. “This decision deprives these fans of a product that has been embraced broadly by the sports community including professional sports teams, leagues and media partners.

“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. In the interim, because we are committed to ensuring we are compliant in all jurisdictions, regrettably, we are forced to cease operations in Nevada.”

“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,” said DraftKings in a press release. “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.”

And so Nevada becomes the latest battleground for an industry that has come under siege almost as quickly as it has risen to national prominence. Fortunately for the likes of FanDuel and DraftKings, they have the resources to defend themselves.

38 responses to “FanDuel, DraftKings temporarily suspend operations in Nevada

  1. The gambling/gaming industry is losing out lots of cash in their opinion (pff) so obviously going to have to squeeze thier chunk out of these daily leagues to allow them to operate. Rough ’em up and collect the “legal” way. It’s BS.

  2. nflexecutivesconstantlylie says:
    Oct 15, 2015 11:19 PM
    Having cash prizes in fantasy sports is gambling
    ———————————————————-
    DFS enjoys the same status as Poker. It was determined the game had a higher percentage of skill factor than luck.
    That’s the fight they will pose with the state of nevada supreme court. And I think they’ll win.

  3. Can we permanently suspend their ceaseless advertising? Enter promo “please for the love of God”.

  4. DFS enjoys the same status as Poker. It was determined the game had a higher percentage of skill factor than luck.

    _________________________________

    I am far from an expert and indulge in neither. It is quite possible I am wrong. My understanding is that online poker is currently legal in Delaware, New Jersey and Nevada. I think DFS is legal in all 50 states. Hardly the same National status.

  5. Their biggest issue was probably their gigantic advertising campaign they pushed this year. Had they not done that and allowed their growth to scale up a little bit they may have avoided this whole fight, in 50 states.

  6. Ahhh, the good ole’ US of A. Playing poker or fantasy football in your living room is a crime because the state doesn’t get a big enough cut.

  7. Nice to see you cover this. The DP Show has been embarrassingly silent on the topic. They pimp it and throw it in our faces for advertising dollars, but when it actually becomes news they ignore it.

  8. Ahh parasites fighting parasites using the technicalities of law. It warms your heart.

  9. start rant..

    This is starting to get as out of hand as the advertising for these sites. Look, I have played on both sites now for a year in MLB, NBA, PGA, NHL, MMA and the NFL. I have never won more than $250 and maybe it’s just me, but I never expected to win that much to begin with. It’s supposed to be another fun way to enjoy the game, just like yearly fantasy (it actually made me a fan of the other sports for the first time since I was in high school). What people also fail to realize is that you can set up private leagues and just invite people you know. Our season long league does a daily league each week. I am sorry that some people are too weak and lack any discipline when it comes to gambling but it doesn’t mean the rest of us should suffer. If I had to guess, I’ve maybe lost $100, including my winnings, in a year. I’ve crapped away more money than that on random junk that I didn’t need in less than half that time. For the life of me, I cannot understand why grown adults see an advertisement for something on TV that says they “could” win millions of dollars and aren’t smart enough to see the “could” in that statement. It’s comparable to when the loons line up for lottery tickets just because the jackpot hits a couple hundred mil. Newsflash, you a’int gonna win.

    end rant.

  10. This was bound to happen at some point with quick rising popularity. These sites will just have to require licenses to operate in all states soon enough. The only “skilled ” players in this are the guys who actually go through hours of analytics to make the best team possible. The other 98% just guess.

  11. I agree that with skill, you can assemble a team that is better than somebody else’s. watching the Falcons lose three turnovers last night against a terrible defense tells me there is a bunch of luck involved. Gambling….just a different form. money is still at risk.

  12. Millions of people choose to play these games why are so many people hung up if it’s gambling or not. I don’t hear anyone try to bring down the state lottery and people waste insane amounts of money playing that. Get over it. It’s gambling, I enjoy it and it has increased my interest in games I had no interest in watching and it’s my choice.

  13. Hopefully the rest of the country will follow suit.

    Then we won’t have to watch all those annoying commercials anymore.

  14. People wanting a company and industry shut down so they do not have to see the commercials. Hilarious.

  15. “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,” Justin Sacco, director of communications for FanDuel, said in a press release. “This decision deprives these fans of a product that has been embraced broadly by the sports community including professional sports teams, leagues and media partners.

    What a load of crap! This decision damages the position of the NFL and it’s investors who have an unfair advantage in advertising in their TV Networks, Sports Broadcasting and Sports Journalism to the point where every 3rd commercial on TV during game day is commercial for DFS. It’s time to squash this for good. It IS gambling just like online Poker is. A “game of skill” for MONEY is gambling.

  16. I’ll try my luck at randomly picking 6 number balls coming out of a audited cylinder (by either an attorney company or a accounting company), and try my “game of skill” as well.

    “Texting while driving” is gambling.
    “Drinking and driving” is gambling.
    Are these the same people that have made illegal to spend $75,000 over 3 days at a brothel.

    Spending my money on picking a team of players against in a league of other players is NOT gambling. It is a game of skill. The company keeping 10-15% is a profit. Nothing wiring w a profit.

    Congrats USA!

  17. I don’t understand. Isn’t horse racing also a skill? Is the track muddy or dry? Grass or dirt or synthetic? Sunny or cloudy? Jockey? So if horse racing is gambling why isn’t fantasy sports. In my book, if you exchange money with the expectation that you can get more money back for picking a team correctly, that’s gambling.

  18. You have to watch and analyze the games differently if you are into fantasy versus real sports betting. It has nothing to do with the people who can’t control the way they manage their money with either.

  19. Betting on the horses or at a dog track is gambling. Poker and blackjack are gambling. All require skill to consistently win, but they are still gambling.

    DFS is also clearly gambling.

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