HomePublicationsNewsletter ArchiveNewslettersVolume 21Issue 34Nevada Provides Notice on Daily Fantasy Sports

On October 15, 2015, A.G. Burnett, Chairman of the Nevada Gaming Control Board, issued a Notice to Licensees (“Notice”) stating that the operation of daily fantasy sports (“DFS”) requires a sports book license in Nevada.

The Notice states that “because DFS involves wagering on the collective performance of individuals participating in sporting events, under current law, regulation and approvals, in order to lawfully expose DFS for play within the State of Nevada, a person must possess a license to operate a sports pool issued by the Nevada Gaming Commission. Further, a licensed operator who offers DFS must comply with all laws and regulations that apply to licensed sports pools.”

The Notice follows reports that the FBI and Justice Department are investigating daily fantasy sports operators, and that the New York Attorney General’s office has requested internal data and information from operators.

Currently, fantasy sports operators argue that their product is not gambling by largely relying upon language in the Unlawful Internet Gaming Enforcement Act, which carves out fantasy sports from its scope. In addition, fantasy operators claim that the contests are games of skill and, therefore, not gambling.

In a statement regarding the Notice, AGA President and CEO Geoff Freeman stated that “[t]he casino industry has repeatedly called for greater legal clarity on daily fantasy sports. 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. We will continue to seek additional clarity in other jurisdictions, as eliminating ambiguity is in the best interests of all parties, including consumers.”

The full text of the Notice is available at:  http://gaming.nv.gov/modules/showdocument.aspx?documentid=10481

 

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