Nevada gaming regulators banned unlicensed daily fantasy sports websites from providing their product to Silver State customers, saying the activity constitutes sports wagering.

In an order filed by the Gaming Control Board Thursday, the agency said daily fantasy sports websites, such as DraftKings and FanDuel, can apply for a Nevada gaming license to operate a sports pool. The Control Board issued a “cease and desist” order that bans the websites from Nevada.

“Since offering daily fantasy sports in Nevada is illegal without the proper license, all unlicensed activities must ceases and desist from the date of this notice,” wrote Gaming Control Board Chairman A.G. Burnett.

Burnett said Nevada sports book operators could offer daily fantasy sports, however, they “should exercise discretion in participating in business associations with daily fantasy sports operators that have not obtained Nevada gaming approvals.

Added Burnett in an interview, “We’re not saying they can’t do (daily fantasy sports). We’re saying they can do this as long as they have a gaming license.”

The Control Board, through an “exhaustive analysis” by the Nevada Attorney General’s office, determined daily fantasy sports constitutes sports wagering.

According to the analysis, the Control Board determined that daily fantasy sports involves “wagering on the collective performance of individuals participating in sporting events.” To “expose” the websites for play in Nevada, the operator would need a sports pool gaming license.

The Control Board decision goes against the arguments made by daily fantasy sports companies that they are games of skill and not gambling. The daily fantasy sports sites also said they were not bound by the 2006 Unlawful Internet Gambling Enforcement Act, which prohibits financial transactions associated with online wagering.

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