The issue of daily fantasy sports has been put on priority in Nevada after Brian Sandoval, the Governor of Nevada reconvened the state’s Gaming Policy Committee to address it. Daily fantasy sports were effectively banned by gaming regulators in late 2015 due to the fact that it operated in the state without a license.
Gov. Sandoval passed an executive order last week, filed with the Secretary of State’s office, reconstituting the committee and asking them to develop a policy for daily fantasy sports.
The multi-billion dollar Daily Fantasy Sports (DFS) industry has been fiercely debated during the past few months in a number of states such as Nevada, New York and Illinois as state legislators contest the fact that these games are not skill games but games of chance. Many states are either contemplating banning the DFS industry or launching investigations to examine issues surrounding its legality.
In a statement, Governor Sandoval said,
Nevada has always been the epicenter for global gaming entertainment, regulation, and innovation. There is no better place in the world to host this important conversation than Nevada, and I look forward to working with this committee and its stakeholders to continue to set the pace and standards for global gaming industry.
The governor heads the Gaming Policy Committee, which includes members of the legislature, general public, gaming regulators, gaming license holders and a tribal representative. Gov. Sandoval revived the committee, which hadn’t met since the 1980s, first in 2012 to study and provide recommendations on how Nevada could best regulate the online poker industry.
The DFS industry in Nevada was doing really well until October 2015 when state gaming regulators decided to act on a state Attorney General’s opinion and declare that DFS websites fell under the category of sports betting and needed to be taxed.. Authorities in Nevada have determined that the DGS industry involves “wagering on the collective performance of individuals participating in sporting events.”
The Gaming Control Board accordingly issued a “cease and desist” order banning websites such as DraftKings and FanDuel from accepting entries from Nevada-based customers. It has however said that they can apply for a Nevada gaming license and operate a sports pool if they want to continue offering services in Nevada.
These DFS companies have opposed the ruling stating that daily fantasy sports are games of skill and cannot be categorized as gambling. They have also stated that they are not bound by the 2006 Unlawful Internet Gambling Enforcement Act, which prohibits financial transactions associated with online wagering.
Gov. Sandoval is also asking the committee to examine to study new online gambling trends and analyze the status of the Nevada’s gaming agreements, skill-based games, new gaming devices and other new innovations that are being introduced in the gambling industry.
