DraftKings, FanDuel Ordered to Shut Down in Las Vegas

Anyone want to play Dungeons & Dragons. I mean, Fantasy Football. Sorry.

Fantasy Freaks, young and old, prepare for the apocalypse. The death knell to your favorite online gambling havens has been hammered well into place by the Nevada Gaming Board.

You may recall the story of the now dubious Justine Sacco of #PRFail fame. No, not that one. The one where she was discovered as the PR manager of FanDuel, following a scandalous insider gambling coup that earned a staffer of DraftKings a check from Sacco’s employer in the amount of $350,000.

That led to some deep cover investigation of the two websites, which led to this.

The New York Times reports that the Nevada Gaming Control Board has “banned residents of the state from participating in daily fantasy sports on the grounds that it constitutes gambling” and is not a game of skill.

FFLThe Wall Street Journal reported earlier Thursday that the FBI and Department of Justice are investigating the legality of pay-to-play daily fantasy sports. Daily fantasy sites have previously been allowed to operate due to an exception in the Unlawful Internet Gambling Enforcement Act of 2006 for online games of skill.

Add the drama between DraftKings and FanDuel and you have the makings of vitriol and the Good Ol’ Boys Club wanting both of those hipster gambling havens out of town.

“The Nevada Gaming Commission concluded that daily fantasy is gambling and needs to be licensed here,” said David Gzesh, a Nevada lawyer specializing in gambling and sports law. “It should give other state’s pause because if it’s perceived as gambling here, then how can they even offer it when sports betting is legal in their states.”

Both companies are worth more than $1 billion — each. However, if they don’t get properly licensed within the home state of gambling, that bottom line may drop completely.

That, and some other PR employer may have to gamble on Sacco for a job.

Publish date: October 16, 2015 https://dev.adweek.com/digital/draftkings-fanduel-ordered-to-shut-down-in-las-vegas/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT