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One U.S. state is shutting down fantasy sports websites

One U.S. state is shutting down fantasy sports websites
photo courtesy of shutter stock

It's hard to miss the ads for fantasy sports websites FanDuel and DraftKings - and that seems to be the problem.

The state of Nevada hasn't missed these ads and has officially ordered those sites to be taken down, claiming they can't operate in Nevada without a proper gambling license. But of course, the entire situation is more complicated than that.

Recently, DraftKings employees won $350,000 by playing on competitor FanDuel, sparking concerns of insider information. That's why Nevada wants the companies and their employees to get their state gaming licenses.

However, these sites are fighting back, claiming that they are protected by a clause of the 2006 Unlawful Internet Gambling Enforcement Act, which specifically states that fantasy sports are exempt.

So you can see where the back and forth comes in. There's the argument that fantasy sports take skill, therefore it's a game and not gambling. The FBI, the Nevada Gaming Commission, Nevada lawmakers and the site owners are all involved. While the argument rages on, both sites have effectively been taken down in Nevada.

It's also important to note that five other states - Arizona, Iowa, Louisiana, Montana and Washington - have also banned the sites over similar concerns.

What do you think? Are these daily fantasy sites a form of gambling, or just innocent fun? Let me know your opinions by posting in the comments below.

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Source: AP
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