Daily fantasy sports pools offered by FanDuel Inc. and DraftKings Inc. are gambling and need to be licensed if they want to do business in Nevada, the state's Gaming Control Board said Thursday.
Until the companies are licensed, they can't legally accept payments from Nevada customers, according to A.G. Burnett, chairman of the control board, which regulates betting in the state with the largest casino industry.
The board has been looking at the legality of pay-to-play fantasy sports for several months, according to a statement, and is ordering them to cease and desist in the state. Nevada's licensed casinos have expressed frustration at the unregulated growth of daily fantasy sports, in particular the industry's claims that it's not gambling.
"The casino gaming industry has repeatedly called for greater legal clarity on daily fantasy sports," the American Gaming Association, a trade group for casinos, said in a statement. "We appreciate that the Nevada Gaming Control Board has provided that clarity as well as a roadmap for DFS companies and casinos to provide popular fantasy sports within Nevada borders."
The daily fantasy sports companies can apply for a license or "just go dark in Nevada," Burnett said in a telephone interview.
The licensing process requires that an application be filed and background investigations conducted, a process that could take six months, Burnett said.
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