Sites like DraftKings and FanDuel have become all the rage over the past year or so, but recent errors, scandals and investigations could mean that their time in the spotlight is almost out and they could soon face a nationwide ban.
In the unlikely event that you haven’t heard about the two sites (or many other like them that have popped up recently) here’s the breakdown – Both sites offer a combination of fantasy football (or any other sport for that matter) and the opportunity to win huge amounts of money, i.e – gambling.
Because of the way they are presented to the masses (us), they have been allowed to operate with minimal supervision and reach critical public awareness mass – sites that operate like DraftKings and FanDuel are classified as games of skill, not of chance – meaning that they are not subject to any restrictions that casinos must adhere to.
But both sites now find themselves in a tricky position due to a few recent scandals, and that position could bring their fall.
The state of Nevada banned the sites last week from operating within state limits and has blocked Nevada residents from accessing the sites.
Nevada also informed both sites that if they wish to resume operations within its limits they must apply for a proper gaming license.
Here’s the thing – If either site takes that course of action, they might very well be shooting themselves in the head.
Applying for a gaming license means that they acknowledge the fact that they have a lot more in common with gambling than they let on.
The FBI and Justice Department are also looking into their legality and could soon weigh in on the matter.
It is still unclear where the chips will fall on this matter, but the die has certainly been cast.
*Both puns fully intended.