Monday, October 26, 2015

Erin McElhone 3rd Period: Nevada Shuts Down Fantasy Sports Sites

     The state of Nevada has stopped the use of fantasy sport sites such as FanDuel and DraftKings. The state is requiring the sites to have a gambling licence before letting them continue to operate in Nevada. The sites disagree, saying that they do not operate in a chance based model, therefore should not be subject to gambling regulations. Nevada is the first state to take a stand against these sites, they make this order just one day after federal authorities were reported to be looking into the practices of the daily fantasy sites. The questioning began not long after a DraftKing employee accidentally released data that showed the NFL players that were started the most fantasy lineups, before some of the games had started. That employee then won over $300,000 in a contest on a rival site (read more on this here.) The sites, as a result of the start of a New York State investigation, released a statement saying that they temporarily prevented their employees from participating in either site's contest.

     I think that this event could be connected to tobacco and alcohol laws. Laws regarding the advertisement of tobacco and cigarettes have been instituted by federal government. Then regarding alcohol laws, states have different restrictions on how much you can order online. I think that the national government should make a law on online alcohol sales, as well as online fantasy sport sites.

find the article here

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