Daily fantasy sports giants DraftKings and FanDuel are plotting a return to the regulated Nevada market with a proposal to introduce a new, “fantasy gaming license.”
The proposal was presented earlier this week to the Nevada’s Gaming Policy Committee and was fairly light on details. At its core, the idea is that daily fantasy sports operators could pay $10,000 to receive the license and would agree to identify anyone who owns 15% or more of the site. Site owners would also agree to restrict players under the age of 18 and would face a maximum, and industry friendly, $1,000 fine for each violation.
It’s a semi-desperate bid from the companies to circumvent the label they fear most, “gambling.” The question now is whether or not Nevada gaming regulators will see things the same way as the daily fantasy sports industry.
The initial reaction, however, was tepid at best. (Remember, this is the daily fantasy sports industry telling the only State in the Union with regulated sports betting what the definition of gambling is.)
According to a report in the Las Vegas Sun, feedback from gaming regulators and Nevada gaming executives from calling the proposal, “regulation light,” to describing the proposal as, “far too short and unnecessary.”
Governor Sandoval struck a more diplomatic approach telling daily fantasy sports representatives:
The door’s open. I feel like there’s a perception that this state is intransigent and is unwilling to be flexible. But on the other hand, I also kind of hear the same thing on your side that you’re intransigent — ‘that we have our business model and we’re not willing to really move outside of that model.’ I think it’s unfair to both (sides). But there is an opportunity here.
Daliy fantasy sports operators are between a rock and a hard place in Nevada because the state’s regulated, and incredibly established, sports betting industry is not interested in competing with companies that are subjected to regulations which, in comparison to the ones they operate under, would be incredibly lax. (For example, the fantasy sports license wouldn’t even require a background check).
On the other side of the argument, DraftKings and FanDuel know that if they acquire a Nevada gaming license, their entire DFS-isn’t-gambling argument goes flying out the window.
There’s no word on when, or if, the daily fantasy sports operators will present a revised proposal to the Nevada Gaming Policy Commission.