Florida Cracks Down on Fantasy Operators as Sports Betting Battle Brews

In a recent development in Florida, fantasy sports operators have been issued cease-and-desist letters by the Florida Gaming Control Commissions. As of now, there is no legal sports betting in Florida due to an ongoing court battle. However, this situation as a whole has raised questions about the future of sports betting in the Sunshine State.

The Florida Gaming Control Commission’s executive director, Louis Trombetta, sent these cease-and-desist letters to several fantasy sports operators, including Betr, PrizePicks, and Underdog Sports. The letters, which were first published by the Florida Regulatory Watch, allege that these operators may be offering or accepting illegal bets or wagers from Florida residents and potentially promoting and conducting an illegal lottery. To reinforce the seriousness of these allegations, Trombetta warned that failing to comply with the cease-and-desist orders could result in the Florida Gaming Control Commission taking further action, including involving the Attorney General’s Office of Statewide Prosecution.

The cease-and-desist letters come at a time when Florida is grappling with the issue of legalized sports betting. Even if sports betting were to become legal, the state’s laws dictate that it could only be offered exclusively by the Seminole Tribe and its Hard Rock Bet sportsbook. This is because sports betting in Florida can only be conducted pursuant to a gaming compact, like the one established between the Seminole Tribe and the governor in 2021.

Fantasy sports operators like PrizePicks have been operating in Florida, offering a “pick ’em” style of fantasy sports. In this format, players wager on the outcomes of two to six events, such as whether a specific player will achieve a certain statistical milestone in a game. This model has allowed these operators to operate in states without legalized sports betting. However, regulatory authorities in some states have begun to scrutinize such operations, with concerns that they are effectively offering sports betting under the guise of fantasy sports. Florida’s cease-and-desist letters appear to be part of a broader trend where regulators are cracking down on operators that blur the lines between fantasy sports and sports betting.

Operators in the fantasy sports industry have defended their position, arguing that their games are based on skill and that they meet the legal definition of fantasy sports contests. They also suggest that this crackdown could extend beyond pick ’em games to include season-long and daily-draft contests. The issuance of cease-and-desist letters to fantasy sports operators in Florida highlights the state’s complex relationship with sports betting and the ongoing legal battles surrounding it. While these letters signal the state’s intent to enforce existing gambling laws, they also underscore the need for clear regulations and a comprehensive framework for sports betting in Florida.