Following the recent scandal in which employees of Draft Kings used inside information to play and win $350,000 dollars on rival daily fantasy sports site, Fan Duel, the Daily Fantasy Sports Betting industry has recently been under a significant amount of scrutiny.
Banned in Nevada
A somewhat unexpected outcome of the recent scandal surrounding Daily Fantasy Sports, is the temporary ban of all DFS games in the state of Nevada. Nevada joins several other states including Arizona, and Louisiana that have deemed DFS illegal. Nevada’s perspective differs somewhat of the other states in which DFS games are banned in that due to gambling being legal in the state, the regulatory agency that licenses gaming feels that DFS has been operating without a proper gaming license. While it is only a matter of time before DFS is once again legal in Nevada due to legalized sports betting in the state, Nevada’s recent ruling reflects the increasing perception that DFS games are not games of skill as website operates will have you believe, but rather games of luck that fall under the gambling umbrella.
Commissioners Call Speak about DFS/Call for Regulations
Since the scandal hit, several pro sports commissioners and leagues have spoken publicly about DFS. MLB Commissioner Rob Manfred recently came out and positively spoke about allowing DFS to occur albeit with some regulation. In a similar vein, Roger Goodell, whose league, the National Football League had previously formed a partnership with Draft Kings downplayed issues surrounding Daily Fantasy Sports and the NFL‘s involvement. That being said, current NFL owners Robert Kraft, and Jerry Jones are investors in Draft Kings, despite the NFL’s attempt to distance itself from DFS. Finally, despite pleas from the NCAA to stop running DFS games involving college football players none of the major DFS companies have relented and ceased offering DFS games through their sites.
State of the Industry
Despite the recent set backs and scrutiny, DFS games are stronger than ever. Major organizations such as Draft Kings, and Fan Duel are growing by leaps and bounds, offering millions of dollars in payouts on a daily basis. While advertising during live sporting contests has been greatly reduced if not banned all together, major organizations such as ESPN are still affiliated with DFS sites such as Draft Kings, and offer links and information on DFS on their websites.
Where DFS goes from here remains to be seen. While regulations are slowly coming about, and things are bound to change, DFS does not appear to be going away anytime soon. With any luck governmental agencies will figure out a way to regulate/tax the industry without eliminating the games all together.