Last week, the New York attorney general opened an inquiry into the prospect that employees of DraftKings and FanDuel won lucrative payouts based on information not available to the public. “Lawmakers have been intensifying calls for federal regulation and inquiries into the industry,” according to the New York Times.

While Nevada is not the only state to outlaw the practice (the games are legal in 45 states), nor the first state to investigate the industry, the state, as home to the casino industry does have a particular interest in having the sites shuttered, as the multi-billion dollar daily fantasy sports gaming industry has risen swiftly and significantly enough to become unwelcome competition for the state’s bread and butter. Nevada regulators disagree and ordered the sites to shut down effective immediately in the state of Nevada, effectively prohibiting residents of the state from participating. The distinction written into the law that allowed the sites to evade the same regulatory oversight as those forms of online gambling is that fantasy sports are, allegedly, games of skill, not chance.

The industry has been able to thrive by sidestepping the 2006 Unlawful Internet Gambling Enforcement Act that outlawed online sports betting and poker. While Nevada is only one state, its determination that the sites qualify as gambling is what the upstart world of daily fantasy sports is worried about.

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