Nevada has taken the first step towards developing a framework to legalize daily fantasy sports (DFS) in the state.
The first meeting of the recently revived Nevada Gaming Policy Committee was held earlier this week in Las Vegas with Nevada’s Governor Brian Sandoval presiding over it .
The committee includes representatives from all key stakeholders covering gaming regulators, top officials from the casinos, state lawmakers and executives from leading DFS sites FanDuel and DraftKings.
The mandate of the committee is to develop the framework that will enable DFS sites, which have gained immense popularity in the last couple of years to operate legally in the state.
KTNV Channel 13 Las Vegas
In a statement, Gov. Brian Sandoval said,
In order for our state to sustain its edge in an increasingly competitive industry, we must continue to expand, progress and embrace the potentials of the 21st century.
While gambling regulators believe that paid contests held on DFS sites for cash prizes constitute gambling, DFS operators continue to maintain that they are a game of skill. A number of states across the U.S are currently examining the legality of DFS games under their current laws.
Nevada’s gambling regulators have said that DFS sites can operate in the state provided the companies declare themselves to be gambling operators and apply for gambling licenses.
DFS companies participating in the process have expressed their eagerness to work towards a solution along with Nevada authorities but have said that they do not wish to operate with a gambling license as it could prove to be restrictive, limiting innovation.
Nevada Gaming Commission Chairman Tony Alamo stated that there was no doubt that the DFS business model needed regulation. American Gaming Association’s Geoff Freeman said that casino companies were eager for the industry to be legalized so that they can work with DFS operators and offer patrons DFS games.
The panel emphasized the fact that measures need to be put in place to protect players against illegal operators and rigged games that often take place when there is unregulated gambling.
All panel members expressed the hope of developing a solution by which DFS games can be made legal in the state. One of the suggestions from the panel was to have a separate license category for DFS operators.
DraftKings CEO Jason Robins has said that while the DFS industry is open to regulation, it is keen that the regulatory framework decided upon be appropriate for the industry. The committee is slated to meet on alternate months and will submit its policy recommendations in October to Nevada’s regulatory bodies namely, Nevada Gaming Commission and the Nevada Gaming Control Board.
