Nevada Tags 'Daily Fantasy’ as Gambling, Gaming Board Shuts it Down
After daily fantasy games was dodged from being shut down in 2006 for an alleged gambling game concept, the Nevada Gaming Board turns the decision around by closing daily fantasy games and declaring it as a form of gambling.
According to the Engadget, Nevada is not the first U.S. State to band Daily Fantasy Sports (DFS), citing Iowa, Arizona, Louisiana, Montana and Washington as some of the places who already banned the game.
The said multibillion dollar industry came under fire when it was noticed that two of their major sites, DraftKings and FanDuel, were the only ones actually gaining revenue. The controversy allegedly fired up when most of the gambling site's employees were the only ones winning on each other's site despite the websites' ban of employees joining in.
Based on the memorandum posted on Engadget, the board's basis for the decision was explained. The notice read: "DFS involve wagering on the collective performance of individuals participating in sporting events."
If the basis of reopening depends on what the memorandum says, all is not lost for Daily Fantasy Sports as it was also stipulated, they need to get the proper license in order to operate again.
Las Vegas, Nevada may be the center of casino games, but it doesn't mean they will agree to anything pertaining to gambling without the proper licensing.
In another post from Wall Street Journal, the FBI as well as the U.S Justice Department have not been all selfish with the DFS, but prompted an investigation whether the company has actually violated a federal law.
The DFS is actually involved In collecting entry fees from customers, who wish to draft their own teams in the fantasy games. Customers will then bet on their own team based on real-world performances.
When the U.S congress banned some of the online gambling sites, DraftKings and FanDuels were saved under the so-called "Games of Skill."
According to Wall Street Journal, an employee of DraftKings made a mistake of revealing some information about one of the company's biggest contest, but ended up winning $350,000 in FanDuel. This led to speculations that the two companies have something suspicious up their sleeves.
A spokesperson for DraftKings acknowledged the initiative of the government to investigate on the matter following malicious and controversial revelations about their company. FanDuel, on the other hand, insists that it is a game of skill and not luck.
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