Why Pennsylvania Should Follow Nevada’s Lead and Regulate FanDuel and DraftKings

The following column, written by The Legal Blitz Founder Steve Silver, originally appeared on Philadelphia Magazine’s Biz Philly website on October 19, 2015. Special thanks to Jared Shelly for his editing expertise.

Nevada is rarely a pillar of morality or model lawmaking.

However, the state’s decision last week to shut down daily fantasy sports operators such as DraftKings and FanDuel until they obtain gaming licenses is a path Pennsylvania should emulate.

By classifying daily fantasy sports as gambling — because that’s what it really is — rather than a game of skill, Nevada determined that a proper license from the Gaming Control Board is necessary to do business in the state. Nevada is now the sixth state to outlaw or limit daily fantasy sports — and there are plenty of others seeking to regulate or ban the increasingly popular contests. Currently, New York, Delaware, Illinois, and even the U.S. Congress are investigating the legality of daily fantasy sports.

Meanwhile, news broke last week that DraftKings and FanDuel are allegedly engaged in consumer fraud through unlawful insider trading.

Pennsylvania is in a particularly unique position to follow Nevada’s lead and create a framework to license, regulate and tax daily fantasy sports as it does with other forms of gambling.

To read the full column and Silver’s regulatory proposal, visit PhillyMag.com.

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