Nevada gaming board shuts down daily fantasy because it's gambling

While daily fantasy games (DraftKings, FanDuel and others like them) may have gotten a special exemption for online betting from Congress in 2006, today the Nevada Gaming Control Board decided they do constitute gambling, and shut down their operations (PDF) in the state. Daily fantasy games were already banned totally in some states (Arizona, Iowa, Louisiana, Montana and Washington), but the home of Las Vegas casino gaming is another matter entirely. This follows a tough couple of weeks for the multi-billion dollar industry which has come under scrutiny because so many employees of the two largest competing sites were playing and winning on each other's sites, with questions over whether they could possibly use insider information to get an edge. Both sites have since banned their employees from playing, but the controversy has not gone away.

Specifically, the board banned fantasy games because "DFS involves wagering on he collective performance of individuals participating in sporting events." To reopen operations in the state, they will need to first obtain a license, or the law will need to change. that second part seems unlikely, given how much money the state makes from legalized gambling within its borders -- income that daily fantasy sites are now competing for. Add this to an investigation by the feds, and it looks like DraftKings and FanDuel should save some of that money they're currently spending on (endless amounts of) advertising, for future legal fees.

[Image credit: Bloomberg via Getty Images]