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Staff member
Jan 14, 2008
On Thursday, the Nevada Gaming Control Board issued a ‘cease and desist’ order to all DFS sites currently serving Nevada customers. In a notice posted on its website,
the Board says analysis by its staff and the state Attorney General’s office concluded that DFS “constitutes gambling under Nevada law” because it involves
“wagering on the collective performance of individuals participating in sporting events,” as established under Chapter 463 of the Nevada Revised Statutes.

Henceforth, any DFS operator wishing to continue its dealings with Nevada players will have to obtain the necessary Sports Betting license from the Nevada Gaming Commission,
with all the attendant poking, prodding, fingerprinting and taxation that this process entails.

The Board says its existing sportsbook licensees “may expose DFS for play themselves” in the state but licensees “should exercise discretion in participating in business associations with
DFS operators that have not obtained Nevada gaming approvals.” Licensees wishing to do business with DFS operators should also conduct “thorough and objective reviews of
DFS activities under the laws of other states and any applicable federal laws.”

It seems unlikely that any DFS operator would seek to acquire a Nevada license, given the state’s small population and the fact that the license wouldn’t
allow operators to enter any other state markets they’re not already serving. Plus DraftKings already has enough trouble explaining why they hold an
online gambling license in the UK when what they’re doing totally isn’t gambling.

Nevada’s name will now be added to the original fab five states – Arizona, Iowa, Louisiana, Montana and Washington – in which DFS play is legally verboten.
Most major DFS operators have also pulled out of Florida following word that a US Attorney in Tampa had convened a grand jury to investigate DFS’ legality,
and public musings from Michigan’s gaming regulator have led to a number of sites giving that state a wide berth.