Nevada did not expressly ban DraftKings and FanDuel specifically-rather, the state has ruled that daily fantasy sports companies are gambling operators, and need to obtain gambling licenses to continue doing business there. Nevada’s decision means that Nevada, for one, does believe it is gambling, and not a “game of skill,” the definition that allows DraftKings and FanDuel to operate in 45 states (now 44). (Read a full timeline of the scandal here.) Since then, the two companies, which together enjoy 95% market share of the daily-fantasy industry, have come under the harsh light of regulatory scrutiny, with investigations launched by the New York State Attorney General and the FBI.ĭid DraftKings and FanDuel fly too close to the sun? The decision out of Nevada could be a tipping point in the question over whether these companies-which pay out millions of dollars to users who select a roster of athletes-constitute gambling. Yes, that covers DraftKings and FanDuel, the two red-hot tech startups that have been all over the news since September-at first for their aggressive advertising blitz, then for their involvement in a scandal over insider play.Įarlier this month, the New York Timesreported that a DraftKings employee won $350,000 playing in a FanDuel contest.
