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Nevada rules Daily Fantasy Sports illegal under state law without a license

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Will be interesting what happens next few days. Also, how long does it take to get a license? Months, right?

I think the situation's quite a bit more complicated. Not quite sure how complicated yet, but I don't think you can just come into NV and get a gaming license without any brick and mortar presence. They'd likely have to partner with an existing casino to make it happen, and even then it's unclear if they'd be able to continue to participate in interstate or international customer pools. Nevada's regulated online poker is all intra-state. DFS could end up the same way, although my guess is they'd have to establish some kind of regulatory framework for it before anything would happen.

So while I admit I don't really know much about this specific situation, based on my general knowledge about this kind of thing I'd say we're looking at many months before anyone new would even be able to apply for a license. And even then, it'd likely be to act as the game provider for a land-based casino. But who knows?

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As this Memorandum is written solely to analyze daily fantasy sports under Nevada law,

it takes no position on the legality of daily fantasy sports under federal laws, such as the

Professional and Amateur Sports Protection Act of 1992.

13 That being said, a point of

clarification is in order because there are some operators and commentators who have taken the

position that the Unlawful Internet Gambling Enforcement Act of 2006 (‘‘UIGEA’’)

14 legalized

fantasy sports within the United States. Given the explicit language of UIGEA, that position is

simply untenable, and often at odds with what those same operators and commentators have

said in the past.

Specifically, in its first section under the subheading ‘‘Rule of construction,’’ UIGEA

states: ‘‘No provision of this subchapter shall be construed as altering, limiting, or extending any

Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling

within the United States.’’15 Thus, it is clear that UIGEA neither made legal nor illegal any form

of gambling within the United States. UIGEA simply provides ‘‘[n]ew mechanisms for enforcing

gambling laws on the Internet,’’ which Congress deemed necessary as it believed ‘‘traditional law

enforcement mechanisms [were] often inadequate for enforcing gambling prohibitions or

regulations on the Internet, especially where such gambling crosses State or national borders.’’16

This conclusion is consistent with those of prominent commentators, including one of the

leading attorneys representing daily fantasy sports operators, who stated, ‘‘The exemption in

UIGEA for fantasy sports does not mean that fantasy sports are lawful, only that fantasy sports

are not criminalized under UIGEA.’’17

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So basically Draftkings fucked everything up.

It's funny that you say that, because the vibe I've always gotten since day one is that FanDuel is the Pokerstars in this comparison, while DK is FullTilt.

I just have a feeling that if FanDuel was alone in the forefront of this industry, that things would have progressed in a manner that is more - i can't find the exact word I'm looking for here, but idk, less immature?

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KK might be spot on with that analogy. Supposedly DK isn't blocking Nevada IPs . . . .

Yeah. I'm restricted based on the location in my account. Created a different account and it wasn't blocked. Not playing on that because of the hassle it would be if I cashed, but it's laughable.

FD geolocated the fuck outta me. Couldn't spoof gps on phone. Couldn't get through piggybacking on a friends vpn using a hard-line. Emailed support and asked if I crossed the state line could I deposit and set line-ups. Got a very polite and informative response that in conclusion said no. As annoying as it is I can at least respect a business doing everything it can to be legitimate.

What a dumpster fire DK is.

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My letter to Illinois Attorney General (special thanks to Justin Van Zuiden @stlcardinals84 whose letter I amended for my own use):

It seems as if the State Gaming Commission is going to ask your office for an opinion on the legality of daily fantasy sports. As a former poker player who lost his previous livelihood due to a few congressmen forcing their beliefs upon the millions of online poker players around the USA through UIGEA being added to a must pass bill in Congress, I now face an eerily similar situation. I have been playing daily fantasy sports since 2013, and for the past year, it has become my primary source of income. I work many hours a week researching, and I also provide content to a well-known website (especially during the NBA season).

Given that our state is unable to balance its budget, the significant extra tax revenue Illinois receives from my job should be taken seriously. Most importantly, the sites in question, issue tax reporting forms every year. Every source of revenue is extremely valuable to this state, and taking away that tax revenue (and jobs) from many residents seems like yet another step in the wrong direction for Illinois.

While it is a job for me, many more love it as a hobby. If you are taking this topic seriously, ask around and see how millions of Americans simply enjoy daily fantasy sports. It is yet another way to enjoy the sports we watch.

I implore you to accept the reality that these games are legal, and enjoyed by thousands in Illinois. Just because the gaming board feels threatened by the arrival of daily fantasy sports into the main stream of America, please do not take away our right to play these contests we love.

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It's funny that you say that, because the vibe I've always gotten since day one is that FanDuel is the Pokerstars in this comparison, while DK is FullTilt.

I just have a feeling that if FanDuel was alone in the forefront of this industry, that things would have progressed in a manner that is more - i can't find the exact word I'm looking for here, but idk, less immature?

I've made this same analogy, and a lot of people have really. I think it's an easy one for poker people who have been around a while, and it works on some level but is far from exact. DK has, however, been the most aggressive in pushing ahead with new products that might be considered legally risky by other companies in their space. But I don't see the kind of corruption within that company that was going on at Full Tilt. I mean, we're talking about an organization that as far as I know did at least several of the following things:

-Processed millions in deposits (for months!) even though those deposits weren't clearing players' bank accounts

-Lent millions of dollars to its sponsored pros via site transfers

-Allowed Tony G, a friend of Howard Lederer, to operate an affiliate site on the domain fulltiltrakeback.com, a clear trademark issue.

-Had a board room and upper management team full of people who could never qualify for similar roles at any other organization.

-Paid out hundreds of millions in profit distributions to shareholders while not maintaining the funds to liquidate all their player balances.

I mean, am I even done here? As a base comparison it works, but I think what we're really saying is that DK seems a bit less the "slow and steady" company of the two, and operates in a riskier, ballsier fashion.

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