I know that Nevada never legalized daily fantasy sports, but for several years now, FanDuel and DraftKings have been running traditional sports books. Have both companies intentionally chosen to stay out of Nevada? Have they been blackballed by state regulators? Or is there another explanation for their absence from the market?
Both FanDuel and DraftKings have chosen to refrain from seeking licenses in Nevada. Since both tent toward hunkering down behind fortress-like corporate bastions, with only the most rudimentary form of media relations (basically, they communicate with the media only when it's necessary), conjecture is required.
First and foremost, the conditional legality of daily fantasy sports (DFS) in Nevada would be a sticking point. In 2015, both companies tried to offer DFS here. Regulators took exception and required DFS licenses, which could be obtained only by partnering with a land-based casino. None stepped forward, so DraftKings and FanDuel exited stage left with a cease-and-desist order nipping at their heels.
Although they're obviously not in the good graces of Nevada regulators, that doesn’t entirely address the question of why the two companies don’t pursue the lucrative sports betting market here.
The consensus appears to be that the main obstacle is Nevada’s requirement that sports-betting accounts be created in person, contrary to FanDuel and DraftKings’ overwhelmingly online model. Until this rule is relaxed, the two sports betting behemoths will probably continue to steer clear of Nevada, especially given that Caesars Sportsbook, BetMGM, and others are already firmly entrenched — and it's quite difficult to wrest sports wagering business away from an established competitor, as late arrivals tend to find out the hard way.
Another reason is that since sports betting has exploded around the country, Nevada has been eclipsed by a number of larger markets: New York, New Jersey, Pennsylvania, Michigan, Illinois, even Indiana. Neither company would rely on Nevada for their bottom lines.
Finally, both companies would need a brick-and-mortar partner. DraftKings does have a marketing affiliation in Nevada with Golden Nugget. This means, at least theoretically, that you could sign up, in the flesh of course, for a DraftKings account at the Golden Nugget downtown or at the one in Laughlin, but that's not the acme of convenience.
FanDuel has no such affiliation, so at least for the time being, it's out of the running.
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