FanDuel, DraftKings considered unlicensed gambling.
Dominick Reuter/Reuters
Nevada regulators on Thursday ordered daily fantasy-sports sites like DraftKings and FanDuel to cease operations, telling the companies to seek a gambling license if they wish to continue operating in the state. The decision comes as increased public scrutiny grows over practices at fantasy-sports companies, after a DraftKings employee admitted he prematurely leaked data about the site’s biggest contest. The state said the sites constitute gambling under Nevada law because they involve “wagering on the collective performance of individuals participating in sporting events.” FanDuel and DraftKings both said they would shut down operations in the state after the decision. Arizona, Iowa, Louisiana, Montana, and Washington have also outlawed the practice.
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