• Daily fantasy sports websites ordered to cease in Nevada?

    Posted on 18/10/2015 by | 1 comment



    Daily fantasy sports websites have been ordered to immediately stop in Nevada. This is the latest blow in a growing sector, and it follows reports that some employees have won substantial sums of money via “insider” play.

    The sites charge customers to select teams. Those customers have the potential to win millions of dollars on the basis of the performance of their choices.

    A company cannot legally accept payments from Nevada customers until it is licensed, according to A. G. Burnett, chairman of the supervisory board which rules on betting in the State.

    The licensing process requires an application to be submitted and background investigations conducted. This process could take six months according to Burnett.

    FanDuel, one of the most important daily fantasy sports companies, maintains that its games are based on skill and are therefore not gambling.

    Burnett said it did not matter whether DFS is based on chance or skill. The key factor is the local game laws on the books that regulate all forms of the game. Burnett said games based on skill are still illegal, “because in a state like Nevada, our statutes and definitions override that.”

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

    According to reports, agents of the FBI Boston office are considering whether the business model for web sites is legal. A Congress hearing is planned, but it is not known when this will happen.

    A FanDuel spokesman declined to comment on the FBI investigation.

    Last week, DraftKings released a statement saying that its new company policy prohibited employees to participate in fantasy games for money.

    All of the illegal operations have been ordered to stop operations in Nevada on Thursday. Those who fail to comply could face criminal prosecution, including fines and up to ten years in prison.

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