This fall, Nevada, which is the king of gaming scrutiny, could lead the way to the regulation of daily fantasy sports (DFS) in the U.S., and subsequently impact the future of the activity – depending upon the results of a “legal analysis” begun in July, and if other states follow any regulatory guidelines the Nevada Gaming Control Board (NGCB) may come up with.
AG Burnett, chairman of the NGCB announced its decision to use those considerable powers of scrutiny to take a closer look at DFS via “legal analysis.” No time frame was associated with the analysis, but it’s anticipated that release of the findings will happen sooner rather than later. Of course the possibility exists that the NGCB may have no negative impact on DFS legal status. Some believe the announcement indicates that the NGCB questions DFS legality under state law, and should be regarded within the parameters of the state’s gaming regulations.
Following the statement made by MGM Resorts International CEO, Jim Murren that DFS is a form of gambling, AGA President Geoff Freeman announced in April that a report “on fantasy sports and sports betting” would be made in November. However, Freeman’s “State of Gaming” keynote address to be given at the Global Gaming Expo in September could provide some insight into what the report might say. Painting an almost crystal clear picture of the report’s content is the title of one of the expo’s seminars, “Business Threat or Opportunity: Sports Betting, Daily Fantasy and the Ongoing Debate.”
Some believe that the upcoming analysis by the NGCB could lead to a challenge of the definition and exclusion of fantasy sports in some legal opinions. The possibility exists the analysis could change DFS’ unregulated status in Nevada, with a decision in favor of regulation having the potential to cause a domino effect throughout the U.S. Currently, laws governing DFS in each state are different and the majority of them make the game available to players, but if Nevada defines DFS gambling, other states could follow suit.