Since last fall, the daily fantasy sports industry in Nevada has essentially been closed down. This happened after state officials declared that operators required a gaming license to operate in the state.
The introduction of a new DFS product is set to bring about some changes, albeit partially. However, the larger part of the industry, in its current state, lacks a clear route to re-enter Nevada.
USFantasy launching
A product, which is both based on and significantly different from the DFS concept, appears to be on the brink of launching, conveniently just in time for the NFL season.
To date, USFantasy is the only entity that has applied for a license to operate a DFS product. They received the license in June.
If you’re acquainted with the concept of DFS through platforms like DraftKings and FanDuel, you’ll find that USFantasy is significantly different:
- You can only play in Nevada through sportsbooks.
- Scoring is based on the concept of traditional “fantasy points” amassed by actual players, but betting operates on a pari-mutuel basis.
- Traditional DFS operates on a salary-cap model which limits its scope, however, at USFantasy, you have the freedom to choose any player you desire.
Find more information on the USFantasy model here.
It is still uncertain which sportsbooks will utilize the USFantasy platform.
DraftKings, FanDuel, not any time soon
Following a meeting with Nevada government officials and casino stakeholders, the future of the remaining DFS industry remains uncertain.
The industry didn’t fare well in a meeting about DFS regulation held by the Nevada Gaming Policy Committee on Tuesday.
The proposed legislation to regulate DFS in the state, drafted by DraftKings and FanDuel, was heavily criticized by the committee for being too lenient with its regulatory measures.
The meeting concluded without any clear idea of what steps Nevada might take to facilitate the re-entry of DFS companies into the state, if any.
Please note that in Nevada, DFS is not currently illegal unless you’re operating without a gaming license. Current operators have been reluctant to apply for such a license.
Casinos, fans of DFS, but not
Casino stakeholders in the state continued to back the idea of DFS, but they were not in favor of making their entry into Nevada easier.
The proposed licensing requirements for DFS operators discussed at the meeting were significantly less strict than those faced by gaming license applicants in Nevada.
For example, a cluster of casino stakeholders in the state penned a letter to the NGPC:
The companies undersigned promote innovation and welcome competition. They are open to having fantasy sports operators as licensees in Nevada, but only if they are licensed and regulated under the same stringent regulatory standards as other licensees.
USFantasy and MGM CEO Jim Murren expressed concerns that were similar, if not identical.
In conclusion, without the backing of casinos, it’s hard to envision a future for DFS sites returning to Nevada.
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