Florida regulators have ordered three fantasy sports operators to stop offering their services in the state by March 1, citing violations of the state’s gambling laws. The operators are Underdog Fantasy, PrizePicks, and Betr, which offer pick’em-style contests that resemble proposition betting. The Florida Gaming Control Commission (FGCC) sent cease-and-desist letters to the three companies in January, threatening to refer the matter to the Attorney General’s Office of Statewide Prosecution if they do not comply.
Fantasy Sports Under Fire in Florida
Fantasy sports have been under fire in Florida since September, when the FGCC sent the first round of letters to Underdog Fantasy, PrizePicks, and Betr, demanding that they cease and desist offering or accepting “illegal bets or wagers” from Florida residents. The FGCC also updated its FAQ page to identify all forms of fantasy sports as “likely illegal” in the state, including daily drafts, season-long games, and pick’em-style contests.
The FGCC argued that betting or wagering on the result of contests of skill, such as sports betting, including fantasy sports betting, is strictly prohibited and constitutes a felony offense unless such activity is otherwise exempted by statute. The FGCC claimed that the pick’em-style contests offered by Underdog Fantasy, PrizePicks, and Betr are not exempted by any statute and therefore violate Florida law.
Operators Plan to Exit Florida Market
Two sources told Legal Sports Report that at least one of, if not all three, plan to comply with the FGCC’s order and exit the Florida market by March 1. A third source said it was multiple pick’em operators, which could mean all three. A fourth source confirmed that Underdog Fantasy will leave Florida.
A spokesperson for PrizePicks told Legal Sports Report that they are “actively working with Florida regulators on what next steps in the state for PrizePicks look like” and that they should have more details to share in the coming days. Betr CEO Joey Levy did not respond to a request for comment on the status of their operation in the Sunshine State. Underdog Fantasy declined to comment.
DraftKings and FanDuel Remain in Florida
Despite the looming exit of the trio of operators, DraftKings and FanDuel, the two largest fantasy sports operators in the U.S., continue to offer paid fantasy contests in Florida. The two entities have not received any cease-and-desist correspondence from the FGCC, according to Legal Sports Report.
DraftKings and FanDuel’s ability to maintain Florida as a market for fantasy sports comes as the FGCC says that all paid fantasy contests violate Florida law. It is unclear why the FGCC has targeted Underdog Fantasy, PrizePicks, and Betr, but not DraftKings and FanDuel, which also offer pick’em-style contests in some jurisdictions.
Florida Legislature Considers Fantasy Sports Bills
The fantasy sports situation in Florida could change depending on the outcome of the current legislative session, which ends on March 8. Two competing bills have been filed that would address the legal status of fantasy sports in the state.
One bill, sponsored by Rep. Jason Shoaf and Sen. Travis Hutson, would exempt fantasy sports apps from state gambling laws and create a regulatory framework for the industry. The bill would allow fantasy sports operators to offer any type of contest, including pick’em-style contests, as long as they pay a $100,000 annual fee and adhere to certain consumer protection measures.
Another bill, sponsored by Rep. Mike Beltran and Sen. Ana Maria Rodriguez, would expressly prohibit player vs. house fantasy games, such as those offered by Underdog Fantasy, PrizePicks, and Betr. The bill would also require fantasy sports operators to obtain a license from the Department of Business and Professional Regulation and pay a $500,000 initial fee and a $100,000 annual fee.
Both bills have been referred to committees but have not yet received a hearing. The sponsors of the bills did not return requests for comment.
