Nevada regulators on Thursday ruled that playing daily fantasy sports should be considered gambling, not merely a game of chance, and ordered websites like DraftKings and FanDuel to stop operating immediately in that state until the companies and their employees receive state gaming licenses.
The decision by the Nevada Gaming Commission was the latest blow to a booming yet unregulated industry that has faced intense scrutiny in recent days, including federal and state inquiries into the business practices of the two major companies.
Daily fantasy sports outfits have operated under an exemption to the Unlawful Internet Gambling Enforcement Act of 2006, which outlawed online poker and sports betting.