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Florida Gaming Control Commission To Remove DFS Sites

Davis Isabela

Updated on February 18, 2024 at 1:16 PM EST, this article is a 2 minute and 39 second read. Find more information on Twitter and Google News.

Florida has requested once again that three specific DFS sites depart from the state's sports betting scene.
Jaylen Waddle of the Miami Dolphins celebrates after a touchdown at Hard Rock Stadium. Photo by Megan Briggs/Getty Images/AFP.

The Florida sports betting landscape became even more complex as state regulators issued a second round of cease and desist letters to three daily fantasy sports providers.

In September 2023, state regulators asked Betr, PrizePicks, and Underdog Fantasy to leave Florida.

The Executive Director of the Florida Gaming Control Commission has issued a letter instructing you to stop offering or accepting bets from Florida residents on contests of skill, such as sports betting and fantasy sports. This action must be taken immediately.

The presence of the DFS provider was widely viewed as a violation of the agreement the state has with the Seminole Tribe and a law that prohibits the use of top sports betting sites not affiliated with the Seminole Tribe.

A follow-up letter was sent on Jan. 31 requesting that the DFS providers leave.

The letter stated that if the cessation is done within the specified timeframe, the company, along with its officials, directors, and employees, will be considered to have met the requirements of the cease-and-desist order. The commission will not pursue additional actions, such as referring the case to the Office of Statewide Prosecution or any state attorney.

The three operators must depart the state by March 1.

The issue

Top sports betting apps like Betr, PrizePicks, and Underdog Fantasy now provide pick’em contests in Florida and various other states across the nation.

These competitions are considered to be unofficial sports betting due to the lack of required licensing and regulation by state authorities. The services provided by Betr, PrizePicks, and Underdog Fantasy in Florida and other states are viewed as blurring the line between daily fantasy sports and lawful sports betting.

Hard Rock factor

The Seminole Tribe in Florida, along with its Hard Rock brand, has a dominant presence in the gambling industry in the Sunshine State, holding a virtual monopoly. Hard Rock is the exclusive sportsbook permitted in Florida.

The tribe, lawmakers, and live betting sites have been engaged in a continuous struggle to establish a comprehensive legal sports betting system for the state, with the Seminole Tribe ultimately retaining control.

Betr, PrizePicks, and Underdog Fantasy have found ways to operate in the state despite the Seminole monopoly, much to the displeasure of regulators and the tribe. These companies have expanded beyond traditional daily fantasy sports and now offer pick’em and sports betting options.

During a recent interview, Hard Rock CEO Jim Allen stated that the company does not have any concerns with fantasy sports, particularly with the services provided by DraftKings and FanDuel.

When it comes to Underdog, Betr, and similar platforms, there is no question that they are engaging in illegal gambling by taking live bets. This is not just the opinion of Jim Allen, the Florida state gaming commission, or the attorney general, but 11 other states have also declared these activities as illegal. It is clear that they are violating the compact.

Next moves

Betr, PrizePicks, and Underdog Fantasy are anticipated to adhere to the cease and desist order in Florida.

“We have reached an agreement with the FGCC to stop our current contests on March 1,” said a spokesperson for PrizePicks. “The resolution allows us to operate in the state in the future, and we will share more information about our future operations soon.”

Ramifications

Betr, PrizePicks, and Underdog Fantasy have faced criticism in multiple states for blurring the line between daily fantasy sports and legal sports betting.

New York, Michigan, California, and Maine have all taken steps to ban company apps related to sports betting. Similarly, the Arkansas Department of Finance and Administration has made efforts to remove daily fantasy sports providers from its state.

The ongoing competition between DFS, sports betting providers, and individual states in the U.S. market is expected to persist. This complex and uncertain issue involves significant financial stakes.

Seven states, including Florida, have entered the debate on blurred lines, with all victories going to the state so far. It is unexpected that California and Texas, where Betr, PrizePicks, and Underdog Fantasy are currently operating, could be the next to challenge the dominance of DFS providers in the busy U.S. market.

Written By:
Davis Isabela
Davis Isabela is the Editor-in-Chief of Underscoreg Review. He has been a writer, reporter and editor for more than 20 years, and his work has appeared in more than 200 publications across North America. His first book, “100 Greatest Canadian Sports Moments”, was a hardcover best-seller in Canada in 2008. He has written more than 50 sportsbook reviews and dozens of other sportsbook-related content articles. James has also been quoted as a sports betting expert in USA Today and Sports Illustrated.