The Nevada Gaming Commission has banned daily fantasy sports websites from soliciting customers from the state, concluding that playing on sites such as DraftKings and FanDuel constitutes sports wagering.
Via Joe Drape of the New York Times:
Nevada Gaming Commission rules #dailyfantasy gambling, and says #draftkings, #fanduel & all other sites must cease & desist operating
— Joe Drape (@joedrape) October 15, 2015
In a legal order filed by the state's Gaming Control Board, the agency stated that daily fantasy sports websites can formally apply for a Nevada gaming license to operate a sports pool. For now, the board has issued a "cease and desist" order that will ban the sites from the state.
The Department of Justice and FBI have entered the preliminary stages of an investigation into daily fantasy sites, looking into the sites to determine whether or not they consititute traditional gambling or function as games of skill legal under the Unlawful Internet Gambling Enforcement Act of 2006 in regards to their legality. The investigation began as a reponse to reports of insider trading between DraftKings and FanDuel employees which led to big scores on rival websites.
DraftKings and FanDuel are already defendants in a class-action lawsuit accusing them of fraud.
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