There’s a murkiness surrounding fantasy sports. On the surface, it sounds like innocent fun, but when you dig deeper, you can be convinced that it’s form a gambling. There’s a fine line and the industry leaders of daily fantasy sports (Draft Kings and Fan Duel) have come under fire as to whether or not their respective operations are gambling.
Nevada has gone as far as to ban daily fantasy sports because it considers it unlicensed gambling. Per ESPN:
Nevada, the state most known for gambling, ruled Thursday that daily fantasy sports is a form of gambling and will require a license to operate in the state.
A.G. Burnett, chairman of the Nevada Gaming Control Board, said all unlicensed daily fantasy activities must cease and desist as of Thursday. Operators could be invited to apply for a gaming license. Those who do not comply could face felony fines and 10 years in prison.
“We are saying that daily fantasy sports are a gambling game under the statutory definition,” Burnett told ESPN on Thursday night. “We’re also saying that these are sports pools, which is when someone is in the business of accepting wagers on sporting events through any system or method of wagering. We have found that it is a wager, and obviously, it’s on a sporting event, and DFS companies are in the business of accepting those wagers.”