Daily Fantasy Sports leaders in bid to licence in Nevada

Flushed with success at being allowed to operate in New York this week (see previous reports), DFS market leaders FanDuel and DraftKings appeared before Nevada’s Gaming Policy Committee Tuesday punting their regulatory proposals in an attempt to gain access to the Nevada market.

Our readers will recall that Nevada regulators concluded last year that daily fantasy sports constitutes gambling, and requires operators to be licensed to Nevada’s high standards.

The reception to the DFS operators’ suggestions was lukewarm, according to media reports, with several members of the committee expressing reservations on the low penalties and lack of criminal background checks in the companies’ proposal, saying it was weaker than laws passed in other states and didn’t measure up to Nevada licensing standards.

“You don’t know your audience,” said Nevada Gaming Commission chairman Tony Alamo. “Nevada is the gold standard … there’s just not an appetite for ‘regulation light’ or ‘regulation not at all.'”

Committee members also questioned whether daily fantasy sports would bring jobs and revenue to the state after hearing that the proposed licensing fees would yield an estimated $30,000 a year statewide – far from enough to cover the cost of regulating the companies.

The DFS operators’ five-page proposal included a $10,000 annual licensing fee for larger operators and would require owners with at least a 15 percent stake in a company to identify themselves to the state.

Legal representatives of the operators said that they believe many of the regulations that apply to land casinos shouldn’t apply to them, but said they were willing to work with Nevada on a more agreeable proposal because of the state’s outsized place in gaming regulation debates.

“That’s why we’re here in Nevada — because of your strong history in these areas,” one said. “Other states look to you.”