The distinction has been an important one for the industry, which has dodged the type of regulation that governs traditional casinos and sports books. Avoiding being labeled “gambling” also has made the contests palatable to professional sports leagues that have partnered with the sites or, in some cases, invested directly.
Seth Young, chief operating officer of the much smaller site Star Fantasy Leagues, said he took it a step further than most, commissioning the same lab that tests casino slot machines to determine if the site’s games were skill-based. Young said the tests confirmed it, but “it doesn’t mean we can disrespect state laws.” He noted his company pulled out of 10 states before Thursday, to stay on the right side of the law. His site pulled the plug in Nevada, too.
“We saw regulation on the horizon,” he said, adding he hopes to return.
Daniel Wallach, a sports law expert from Florida, said the board’s decision is not going to “cause an extinction of fantasy sports from Nevada, forevermore.” But it confirmed what Wallach and other observers familiar with the gambling industry have long contended.
“Fantasy is a form of gambling that should be licensed just like sports betting, just like any other form of gambling,” he said.
