LAS VEGAS (AP) – Nevada regulators ordered daily fantasy sports sites like DraftKings and FanDuel to shut down Thursday, saying they can’t operate in the state without a gambling license.
The decision comes amid growing backlash by investigators and regulators over the sites, which have grown in popularity in the past year, and could cause ripples in other states that have questioned their legality. Regulators elsewhere often watch decisions made by Nevada’s Gaming Control Board since it governs Las Vegas area casinos.
Participants on the unregulated sites can compete in games involving NFL or college players, paying an entry fee that goes into a larger pool. They try to assemble teams that earn the most points based on real-life stats in a given period, with a certain percentage of top finishers earning a payout.
Entry fees on DraftKings range from 25 cents to more than $5,000. Some prizes top $1 million.
DraftKings and FanDuel say the sites provide games of skill and not chance, and are therefore protected by the Unlawful Internet Gambling Enforcement Act established in 2006.