[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.]
Another day, another potential jackpot for an industry that has paid out plenty of them.
According to Brent Schrotenboer of USA Today, Nevada has determined that daily fantasy constitutes gambling under state law, bringing such contests within the parameters of the state’s gambling regulations.
“Since offering DFS in Nevada is illegal without the appropriate license, all unlicensed activities must cease and desist,” declares a notice released by the Nevada Gaming Board.
Although Congress concluded in 2006 that fantasy sports do not constitute gambling, each state can make its own determination. Currently, daily fantasy operators avoid Montana, Louisiana, Arizona, Washington, and Iowa.
While federal law doesn’t regard daily fantasy as illegal, the federal Illegal Gambling Business Act applies when gambling operations of a certain size violate the laws of specific states. That’s the gist of a current federal grand jury probe in Florida.
In Nevada, daily fantasy operators can now pursue the appropriate licenses or challenge the finding. The status quo entails plenty of risk, especially with folks in Nevada likely feeling threatened by the reality that folks can lose their money playing daily fantasy when they could instead be losing their money on the casino floor.
This new development comes in the wake of news that the FBI and the Department of Justice are investigating the daily fantasy business model. Meanwhile, DFS continues to generate plenty of interest and revenue, with users in some states possibly deciding that they’d better play while they still can.