Questions Mount in Wake of Nevada Drama Over DraftKings and FanDuel

Questions Mount in Wake of Nevada Drama Over DraftKings and FanDuelAhead of the weekend, mGamingWatch echoed global media outlets which reported that, following a swift investigation and intervention by the feds, some of the largest players in daily fantasy sports are facing enormous pressure today.

With news of the Department of Justice and the FBI potentially wanting to explore if DraftKings and FanDuel violated federal laws, the Nevada Gaming Control Board acted quickly to effectively ban the websites from operating in that state.

Per the Board’s order, the sites are being compelled to seek a Nevada gaming license in order to resume operations.

“The board issued a ‘cease and desist’ order that bans the sites in the state unless they obtain a license first,” the NY Daily News reports, noting that violations of the order could face felony fines and upwards of a decade in prison.

“Since offering (daily fantasy sports) in Nevada is illegal without the appropriate license, all unlicensed activities must cease and desist from the date of this notice,” the Board’s decision reads.

So what happens next? For now, there are far more questions than answers.

“The question is whether these companies are operating legally or illegally. The federal authorities need only find one instance of a violation of a state gambling statute, before they dive into the federal statutes,” Marc Dunbar, a partner in the Government Relations Practice Group for Florida-based firm Jones Walker, is quoted in the report. “The federal authorities have greater resources, the federal penalites are stronger. They have witnesses and can develop a deep, fact-based complaint. That is the peril.”