Florida Regulators Target Daily Fantasy Sports Operators
Florida gambling regulators have taken action against three daily fantasy sports operators by issuing cease-and-desist letters, alleging that they offer potentially illegal mobile betting games.
The move signals increased scrutiny by the Florida Gaming Control Commission, with season-long fantasy sports games also coming under scrutiny.
Legal Gray Area
The legality of companies operating daily fantasy sports games in Florida remains in a gray area as the state’s laws do not explicitly address daily fantasy sports within the context of unlawful gambling.
The cease-and-desist letters were sent to the following companies:
- Underdog Sports, LLC, based in Brooklyn, New York
- SidePrize LLC, also known as Performance Predictions LLC, operates as PrizePicks and based in Atlanta
- Betr Holdings, Inc., headquartered in Miami
While the letters clearly indicate the state’s intent to crack down on what it deems “illegal bets or wagers,” it’s worth noting that many other popular websites and mobile apps that offer daily fantasy sports games, such as DraftKings and FanDuel, did not receive similar letters from the commission.
Legal Ambiguity in Florida
Florida’s gambling landscape is complex, with strict regulations in place, particularly concerning slot machines, which are only permitted in tribal casinos. Daily fantasy sports operators have faced challenges in navigating this legal ambiguity, and the recent cease-and-desist letters reflect the state’s ongoing efforts to clarify the regulatory framework surrounding these activities.
The crackdown on daily fantasy sports operators in Florida highlights the need for regulatory clarity in the evolving landscape of online gaming and sports betting. As the legal status of these activities remains uncertain in some states, ongoing discussions and potential legislative updates will play a crucial role in shaping their future in Florida and beyond.