Florida Gaming Control Commission Requests Betr, PrizePicks, and Underdog Sports to Exit State
In a notable regulatory move, the Florida Gaming Control Commission (FGCC) has formally requested three fantasy sports operators—Betr, PrizePicks, and Underdog Sports—to exit the state within a 30-day period as of January 31, to avoid potential legal consequences. This decision follows earlier communications from September, where the FGCC had issued cease-and-desist letters to these operators. The letters were issued over concerns that the fantasy sports games offered by these platforms, particularly pick'em style games, might be veering into the territory of unlicensed sports betting, according to some state regulators.
A Tough Call for Fantasy Sports Operators
The move to exit Florida is poised to deliver a significant blow to the operations of Betr, PrizePicks, and Underdog Sports. "We can confirm that we have reached a negotiated resolution with the FGCC to cease operating our current contests on March 1st," a spokesperson for PrizePicks disclosed, reflecting the gravity of the situation for these companies. The groundwork for this regulatory action was laid when cease-and-desist letters were distributed to the three Daily Fantasy Sports (DFS) sites for engaging in activities that the FGCC believed closely resembled unlicensed sports betting.
Legislative Efforts and Regulatory Uncertainty
Amidst this regulatory scrutiny, there are ongoing legislative efforts aimed at potentially shielding these operators from the stringent gambling regulations of Florida. The legislative session set to conclude on March 8, presents a crucial timeline for any legal reforms that could impact the future operations of DFS platforms in the state.
The segregation of fantasy sports from traditional sports betting remains a contentious issue. Currently, Hard Rock Bet is the sole operator legally authorized for digital sports betting within Florida, having launched its app in late 2023. This monopolistic setup accentuates the opportunity that DFS games have to capture the market, despite the regulatory hurdles that have surfaced.
The Broader Impact and State-by-State Dynamics
For Betr, PrizePicks, and Underdog Sports, the mandate to cease operations in Florida does not mark the end of their presence in the U.S., as they continue to function in numerous other states. Yet, Florida's unique regulatory environment, particularly the Seminole Tribe's monopoly over most house-banked table games and the recent extension of their gaming privileges, adds layers to the ongoing debate about DFS and sports betting regulations. A notable development in this discourse is the disagreement between the Seminole Tribe and Governor Ron DeSantis regarding the "hub-and-spoke" betting approach. This dispute, questioning the approach's conformity with federal Indian gaming statutes, is currently pending appeal to the U.S. Supreme Court.
Notably, Hard Rock Bet, the Tribe's sportsbook brand, ventured back into the online betting scene in December, signaling a complex interplay of interests and legal interpretations around sports betting in Florida. Furthermore, the claim by some that pick’em fantasy sports games directly infringe upon the Tribe's compact, by allowing players to bet money against the house, accents an ongoing regulatory challenge.
Regulatory Actions Beyond Florida
Moreover, regulatory pressures are not confined to Florida alone. On Thursday, the Arkansas Department of Finance and Administration issued cease-and-desist letters to Underdog Sports and PrizePicks, cautioning both DFS sites to discontinue offering "unlicensed sports betting" within the state. "Arkansas is not 'wide open,'" asserted Regulatory Administrator Trent Minner, highlighting the seriousness with which Arkansas views the unauthorized operation of such betting activities, especially those accessible to individuals under the age of 21.
Looking Forward
The situation in Florida reflects broader uncertainties surrounding DFS regulations across several states. A notable point of reference is a 1991 opinion by then-Attorney General Robert Butterworth, suggesting that fees connected to fantasy sports contests could be deemed as gambling. This perspective was offered nearly sixteen years before the inception of the first DFS website, underscoring the evolving legal landscape that these platforms now navigate. Despite these challenges, DFS platforms have managed to continue serving Floridians, even as lawmakers grapple with proposals intended to formalize the industry—a task that remains uncompleted by either legislative chamber.
As developments unfold, the intersection of sports betting, fantasy games, and state regulations remains a dynamic and evolving narrative, underscoring the complexities of navigating legal frameworks for emerging forms of digital gaming and betting in the United States.
