Florida cracks down on Daily Fantasy Sports Operators

Florida Gaming Control Commission has taken action against three fantasy sports (DFS) operators by sending cease-and-desist letters.

The letters accuse the operators, Underdog Sports, SidePrize LLC (doing business as PrizePicks) and Betr Holdings Inc. of offering mobile betting games that may be illegal.

The commission orders them to stop accepting bets from Florida residents and to refrain from promoting lotteries or offering cash prizes to entice residents into engaging in illicit betting.This crackdown also encompasses season fantasy sports games coinciding with the start of the football season.

The commission is particularly concerned about the “parlay style” games offered by these companies, which closely resemble sports betting—a prohibited activity in Florida.

According to the director of the commission, these companies have crossed into sports betting territory, violating state regulations.

Interestingly industry sportsbook giants DraftKings and FanDuel have not received any cease-and-desist letters yet, leaving room for a crackdown.

Emails suggest that further actions may be on the horizon. The legal disputes surrounding gambling in Florida have been ongoing since a 2021 agreement between the state and the Seminole Tribe granted control over sports betting to the tribe. With the legal environment constantly changing, the future of fantasy sports (DFS) operators in Florida is still uncertain.

State legislators are currently discussing measures for the industry. The issuance of cease-and-desist letters coincides with challenges to the Seminole Tribes exclusive rights to sports betting in court.

This indicates an approach by the Florida Gaming Control Commission towards all forms of sports wagering within the state.

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