Nevada gaming regulators have ruled that daily fantasy sports (DFS) is gambling and therefore DFS operators need a license to take action from Nevada residents.

On Thursday, the Nevada Gaming Control Board issued a ‘cease and desist’ order to all DFS sites currently serving Nevada customers. In a notice posted on its website, the Board says analysis by its staff and the state Attorney General’s office concluded that DFS “constitutes gambling under Nevada law” because it involves “wagering on the collective performance of individuals participating in sporting events,” as established under Chapter 463 of the Nevada Revised Statutes.

Henceforth, any DFS operator wishing to continue its dealings with Nevada players will have to obtain the necessary sports betting license from the Nevada Gaming Commission, with all the attendant poking, prodding, fingerprinting and taxation that this process entails.

The Board says its existing sportsbook licensees “may expose DFS for play themselves” in the state but licensees “should exercise discretion in participating in business associations with DFS operators that have not obtained Nevada gaming approvals.” Licensees wishing to do business with DFS operators should also conduct “thorough and objective reviews of DFS activities under the laws of other states and any applicable federal laws.”