DraftKings and FanDuel have reportedly started the process of becoming licensed gaming operators in Nevada, a sign that both operators are interested in ending more than seven years of self-imposed exile from the state.
According to a report by PlayUSA, DraftKings appears to have filed an application with the Nevada Gaming Control Board (NGCB) around March 2020, while FanDuel did the same one year later. The media outlet obtained copies of the applications through a public records request.
The report also said NGCB officials consider both applications to be pending and confirmed that neither application has been completed to the point where it could be given final review by the board.
A spokesperson for DraftKings told US Gaming Review that the operator didn’t have any comment specific to Nevada, but added that “in general, we do have a goal of nationwide expansion.” A representative for FanDuel, which is owned by Flutter Entertainment, did not return messages seeking comment.
How we got here
Both DraftKings and FanDuel left the Silver State in October 2015, shortly after the NGCB determined that daily fantasy sports (DFS) constituted gambling under state law and that operators must be licensed.
The operators left under a cloud of suspicion. That same month, the New York Times reported that a DraftKings employee had won a large prize in a FanDuel contest. The resulting data scandal triggered separate investigations by the New York State Attorney General and the FBI.
They also left in order to focus on their operations in other states. But Nevada’s importance grew significantly following the Supreme Court’s decision to nullify the Professional and Amateur Sports Protection Act (PASPA) in May 2018.
Although the operators have yet to return, DraftKings has been signaling that it is interested in returning to Nevada.
Last month, the operator announced that it would open a 90,000-square foot technology hub in Southwest Las Vegas that could accommodate a staff of more than 1,000 employees.
The new office is expected to occupy most of a building at UnCommons, a 40-acre development scheduled to open in early 2022. Once opened, it will be DraftKings’ second-largest office, after its Boston headquarters.
No mention of Nevada in Q3 calls
During a Q3 2021 earnings call earlier this month, DraftKings CEO Jason Robins said the operator had secured authorizations for mobile sports betting in Louisiana, Maryland, New York and the Canadian province of Ontario, and predicted that it would launch there in the coming months. Executives made no mention of Nevada during the call.
But Robins did mention that DraftKings had made “significant progress” toward closing its acquisition of Golden Nugget Online Gaming (GNOG) during Q3. DraftKings announced the $1.56 billion deal in August.
While acquiring GNOC would transform DraftKings into a bona fide gaming operator, a separate commercial agreement with Fertitta Entertainment, parent company of Golden Nugget/Landry’s, calls for granting DraftKings an expanded retail sportsbook presence “through certain Golden Nugget casinos.”
It’s not clear if the Fertitta agreement covers the Golden Nugget Las Vegas Hotel & Casino, but if it does, DraftKings will need to be licensed through the NGCB.
Meanwhile, earlier this month Flutter CEO Peter Jackson said during an earnings call to discuss Q3 2021 that the company expects seven US states to go live with some form of online gaming in 2022. Although Jackson said most of the new states should be for sports betting, he did not identify the states expected to go live.
DraftKings Sportsbook is currently live in 15 states, while FanDuel Sportsbook is now live in 12. Both operators have their online casino product live in five states.
