The decision was approved by AG Burnett Chairman of the Nevada Gaming Control Board, who ordered all DFS operators to stop activity within the states borders and begin to apply for gaming licenses.
Detailing the gaming board’s decision to consider DFS as a form of gambling, Burnett stated that following a review it found that DFS “involves wagering on the collective performance of individuals participating in sporting events,”.
DFS operators should therefore adhere to Nevada regulations governing sports betting pools and wagers. The Nevada board strongly reiterated that DFS services had not been made illegal, but that the operators would have to confine to state laws on betting
Leading market operators FanDuel and DraftKings, have moved to cease their operations in Nevada as a result of the decision.
Both operators released statements protesting the decision taken by the Nevada board, stating that the lawmakers had failed to grasp that the popular DFS services were a skill-based entertainment. DraftKings further claimed that the decision was an “exclusionary approach against the increasingly popular industry”.
As political, media and consumer scrutiny continues to grow over DFS services, five states in 2015 (Arizona, Iowa, Louisiana, Montana and Washington) have made DFS services illegal. Kansas earlier this year enacted a law officially legalizing fantasy sports.