Nevada Orders DraftKings, FanDuel Shut Down

DFS has faced unprecedented scrutiny following the recent discovery that a DraftKings employee with access to non-public DFS data won $350,000 playing DFS on FanDuel’s site.

The governing body for college sports, which has strict rules for its players prohibiting sports betting, has expressed its discomfort with daily fantasy sports.

The two top fantasy sports companies, DraftKings Inc. and FanDuel Inc., maintain their games are based on skill, not luck.

The sites will likely be making their case for legalization across the country, if they haven’t already, as lawmakers and regulators pour over their own gambling laws and wonder where sites like DraftKings and FanDuel fit in.

That strategy doesn’t sit well with Jim Leach, the congressman who drafted the initial law. “Quite precisely, UIGEA does not exempt fantasy sports companies from any other obligation to any other law”, he recently told the Associated Press.

Menendez suggested that UIGEA has created a “regulatory vacuum” and said Congress should re-examine the lack of federal oversight.

Seth Young, chief working officer of the a lot smaller website StarFantasy, stated he took it a step additional than most, commissioning the identical lab that checks on line casino slot machines to decide if the location’s video games have been talent-based mostly.

“Daily fantasy sports is an industry crying for consumer protection”, Rep. Frank Pallone (D-NJ), who called for an investigation of the industry last month, said earlier this week.

“The casino gaming industry has repeatedly called for greater legal clarity on daily fantasy sports”, the American Gaming Association said in a statement. “That legal status is unlikely to change”. “It should give other state’s pause because if it’s perceived as sports gambling here, no other state can offer it when it violates federal law.” .

In response to allegations of abuse of insider information, both sports sites have banned employees from competing in daily fantasy sports. FanDuel, on the other hand, insists that it is a game of skill and not luck.

Massachusetts Attorney General Maura Healey’s office has declined requests to comment.

The law isn’t as friendly in Iowa, Wisconsin, Arizona, Louisiana and Montana, where residents are ineligible to play on DraftKings or FanDuel, USA Today reported. It seems increasingly unlikely, however, that states are going to continue to treat these companies as nothing more than online retail startups. That said, Nevada is the state most qualified to be the arbiter what it and isn’t gambling. “They have reputational issues right now”.

“For instance, DraftKings performs analytics to determine winning strategies, return on investment of certain strategies, and even how lineups on FanDuel would do if they were entered into DraftKings contests”. After all, the state depends on it. An unregulated industry translates into lots of lost tax revenue. But it could have severe ramifications across the majority of U.S. states in which sports betting is illegal as they could soon be banned there and have no hope of returning. Anti-money laundering regulations can be costly.

No every day fantasy sports sites are licensed in Nevada, however the sites can apply for licenses. So as USA regulators shut down sites domestically, internationally ones crop up to cater to their wants.