Three “pick ’em” style fantasy sports operators are expected to leave the Florida market after receiving cease-and-desist letters from the Florida Gaming Control Commission.
The commission alleged that the operators were engaged in offering “illegal bets or wagers.” Media reports have now indicated that Betr, PrizePicks, and Underdog Fantasy are now planning to cease operations in the state.
The legality of daily fantasy sports, in which participants select certain players in various contests and hope to score enough points to cash in a contest, varies by state and the commission argues that the contests offered by these three companies violate state law.
“Florida defines gambling as playing or engaging in any card game or game of chance, at any place, by any device, for money or another thing of value,” the Tallahasseee Democrat notes. “Previously, fantasy sports operated in a sort of gray area in Florida.”
That gray area creates some vagueness and has left the legality of DFS uncertain. Fantasy operators argue that the games require skill and shouldn’t be considered the same as gambling. Players select their rosters and make selections based on their knowledge of sports leagues and the athletes on each team. Gaming regulators in the Sunshine State disagree with that notion.
“Under Florida law, 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,” Commission Executive Director Lou Trombetta wrote in the letter to the operators.
It’s unknown if larger fantasy sports operators like FanDuel and DraftKings have received similar notices from the state. Some in the industry have argued that these platforms may not be affected as they offer a prize pool that is paid back out to players while the three notified operators see players battling against the “house” and all fees not distributed back to players.
The news comes at a time when the state continues to fight in court after reaching an agreement to allow the Seminole tribe to control online sports betting in the state. Opponents have argued the deal violates state and federal laws.
