IIHF president Rene Fasel told The Associated Press on Tuesday the odds of NHL players going to South Korea are 50-50.
"I'm not going to handicap it," Daly said, "but what I'd say is, I think time is very short to make a decision, and I'm not sure there's been a lot of progress made in the past six months, and I'm not sure there is any prospect of progress being made.
"On the basis of that, I would say I'm more negative today than I was two weeks ago."
At the heart of the issue is the IOC refusing to cover the travel and contract insurance expenses it has covered in the previous five Olympics that have included NHL players. Daly also said the NHL wants to know more about accommodations typically made for players and their guests, along with the physical layout of the Olympics.
Daly said the NHL met with the IIHF here during the World Cup of Hockey 2016 and has discussed setting a date for future meetings with the NHL. He said the NHL has no plans at this time to sit down with the IOC.
"We got an update from the International Ice Hockey Federation as to their most recent conversations with the IOC, and it doesn't seem as if there has been much progress made in terms of the elements that we've typically had," Daly said.
"It's something they felt was appropriate for five consecutive Olympics. To change course now is difficult."