Nevada has been a home for sports gambling for quite a long time, and it is among the states where daily fantasy sports is currently legal. However, that could all change, as the Nevada Gaming Control Board is reportedly analyzing the DFS industry to consider how it fits in the legal gaming atmosphere in the state.
ESPN Chalk’s David Payne Purdum reported that Nevada Gaming Control’s AG Burnett has “begun legal analysis” of daily fantasy sports, and wants to communicate with DFS sites to consider their legal status. He added that Burnett views DFS as an “evolution” of gaming that Nevada must “contend with.”
So how big of an impact could this have on the daily fantasy industry? Purdum says he could see this analysis ending the legal access to DFS in Nevada, but not across the nation, He adds that there is still plenty of gray with an absence of black and white answers when it comes to DFS.
The daily fantasy industry continues to grow, with DraftKings recently securing over $300 million in new investment funds from various backers (including Fox Sports).
A cause for concern?
With numbers like that, daily fantasy sports are a threat to other forms of sports gaming. In a state with a large chunk of its economy tied to legal, regulated forms of gambling, it shouldn’t come as a surprise that there’s pressure to regulate and throttle the daily fantasy game to drive more people to the state’s big moneymakers.
This analysis may lead to regulations and changes in other states that have legal sportsbooks and casinos with interests to protect. That’s the opinion of Online Poker Report (OPR), as posted on the Two Plus Two forums. OPR believes that the way DFS sites operate in Nevada will change, but is unclear to what extent, and that a domino effect may follow in states where sports gambling is legal.
The fact that the Gaming Control Board is willing to talk to DFS operators likely means they’re looking to discuss how to regulate and tax the sport like they do gambling and other legal gaming offerings in the state. But they could also decide to ban it altogether. Their decision could have an impact on how thousands of gamers across the nation are able to access daily fantasy sports.