Daily Fantasy Sports News
LAS VEGAS — (Associated Press) - Nevada regulators have ordered daily fantasy sports sites like DraftKings and FanDuel to shut down, 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.
“I feel like J. Robert Oppenheimer, having invented the atomic bomb,’’’ Dan Okrent said last weekend. “I meant it for peaceful purposes.’’
Okrent is the man who came up with the concept of season long fantasy sports at the close of the 1970’s. At the time he could not have conceived of one-week or even one-day leagues.
The FBI and U.S. Justice Department have initiated an investigation into the two leading Daily Fantasy Sports companies, DraftKings and FanDuel.
The concern lies with whether Daily Fantasy Sports is actually a form of illegal sports betting, an activity forbidden under the federal Wire Act.
From the Wall Street Journal:
It began as a post questioning whether one of FanDuel’s top players may somehow be using an autoscript to scrape up posted plays of other FanDuel customers, most of which involves National Hockey League plays.
Jeremy Greenfield of TheStreet.com predicts that a scandal rocking the Daily Fantasy Sports sector will do nothing to stop the industry’s phenomenal growth.
On October 5, 2015, the New York Times blew wide open a story that had begun to spread throughout the Daily Fantasy Sports community.
Both DraftKings and FanDuel were forced to release statements defending their businesses’ integrity after what amounted to allegations of insider trading, that employees were placing bets using information not generally available to the public.
Making the rounds of news in recent days is a player lineup data leak that occurred at DraftKings.com.
The controversy surrounds insider access to such information that has some crying foul as it pertains to one of the most venerable companies in Daily Fantasy Sports today.
Alex Reimer, in a piece this week for Forbes.com, argues that the National Football League embracing of Daily Fantasy Sports crosses the lines of hypocrisy.
In a sign that Daily Fantasy Sports is running afoul of some entities, the SEC Network announced this weekend that they would no longer permit DFS advertisements.