Florida Gaming Control Commission To Remove DFS Sites

The complicated Florida sports betting scene took another twist with a second round of cease and desist letters from state regulators to a trio of daily fantasy sports providers.

State regulators requested in September 2023 that Betr, PrizePicks, and Underdog Fantasy depart Florida.

The letter stated: “Accordingly, as Executive Director of the Florida Gaming Control Commission, I am hereby demanding you immediately cease and desist offering or accepting bets or wagers from residents of this state on the results of any contests of skill such as sports betting, including, but not limited to, bets or wagers made in connection with fantasy sports.”

The DFS provider presence was largely seen as an affront to a deal the state has with the Seminole Tribe and a law preventing the usage of the best sports betting sites outside the Seminole's presence.

On Jan. 31, there was a follow-up letter requesting the DFS providers' departure.

“If the cessation is completed within that timeframe, the commission will deem the company and all its officials, directors, and employees to have complied with the demands of the cease-and-desist order, and the commission will not take further action, including referral to the Office of Statewide Prosecution or to any state attorney," the letter read.

The last day for the three operators to depart the state is March 1.

The issue

Some of the best sports betting apps such as Betr, PrizePicks, and Underdog Fantasy have been offering pick'em contests as part of their offerings in Florida and other states around the country.

Such contests have been deemed de facto sports betting without the licensing and regulation requirements mandated by state regulators. Those offerings by Betr, PrizePicks, and Underdog Fantasy in Florida and other states are seen to have crossed the line between DFS and legal sports betting.

Hard Rock factor

The Seminole Tribe in Florida and its Hard Rock brand hold a virtual monopoly on the gambling industry in the Sunshine State. Hard Rock is the only Florida best sportsbook allowed.

There has been an ongoing battle between the tribe, legislators, and best live betting sites operators to bring about a wide-ranging legal sports betting platform for the state. Through it all, the Seminole Tribe would maintain control.

Betr, PrizePicks, and Underdog Fantasy have essentially circumvented the Seminole monopoly in the state, to the chagrin of both regulators and the tribe itself. The companies in question have failed to limit their offerings to DFS and have crossed over into a pick'em, sports betting-style platform.

In a recent interview, Hard Rock CEO Jim Allen said: “We made it very clear that we do not have an issue with fantasy sports, specifically with what DraftKings and FanDuel are offering.

With that said, when we get to Underdog, when we get to Betr, and others like that, there is no doubt; not just in Jim Allen’s opinion, it’s not just the Florida state gaming (commission) opinion, it’s not just in the attorney general’s opinion, but 11 other states … have flat out said what they are doing is gambling, they’re taking live bets, and it’s illegal. And, yes, unequivocally it violates the compact.”

Next moves

It is expected that Betr, PrizePicks, and Underdog Fantasy will comply with the cease and desist order in Florida.

“We can confirm that we have reached a negotiated resolution with the FGCC to cease operating our current contests on March 1,” said a PrizePicks spokesperson in a statement. “That resolution, however, makes very clear that we are welcome to operate in the state in the future, and we will provide additional details on go-forward operations in due course.”

Ramifications

Betr, PrizePicks, and Underdog Fantasy have endured scrutiny in other states, too, for their blurring of the DFS/legal sports betting line.

New York sports betting, Michigan sports betting, California sports betting, and Maine sports betting have been active in removing the company apps from their markets. The Arkansas Department of Finance and Administration has also attempted to get the DFS providers out of its state.

Expect the battle between DFS, sports betting providers, and individual states to continue in the U.S. market. It is a murky, convoluted subject that has a lot of money on the line.

Seven states, including Florida, have weighed in on the blurred lines, with the state winning on all fronts so far. Surprisingly, California and Texas sports betting, which currently have Betr, PrizePicks, and Underdog Fantasy available, could be next to put a serious dent in the DFS providers' widespread presence in the bustling U.S. market.