Florida gaming regulators sent out cease-and-desist letters to daily fantasy sports operators. The Florida Gaming Control Commission claimed the operators are providing illegal mobile betting games within the state. Also, the regulators are threatening to file lawsuits against the sites if they do not stop their operations.

Commissioner Lou Trombetta sent letters on Tuesday warning the three businesses against facilitating or taking illegal bets or wagers. The authority has also expressed concern that the businesses may be facilitating and advertising an unlawful lottery.

Underdog Sports, LLC of Brooklyn, New York; SidePrize LLC of Atlanta, Georgia, doing business as PrizePicks; and Betr Holdings, Inc. of Miami, Florida, were all sent letters.

Florida Gaming Regulators Target DFS Operations

Florida Gaming Regulators Targets Fantasy Sports Operators

Fantasy sports include drafting teams of real athletes, with the outcomes of games being decided by the players’ projected performance. Games like office pools may go on for weeks or even months. The three firms provide “parlay-prop-style” games, which resemble illegal sports betting and are thus prohibited in Florida.

According to a political news forum, a gaming compact is signed to establish an understanding with the state. DraftKings and FanDuel, the two companies that have dominated the fantasy sports industry in the decade since online games first became available, did not get letters from the commission.

Emails reveal the casino regulators may be casting a wide net, although it remained unclear on Friday if the commission will come hard on additional companies in the future.

Attorney John Lockwood, retained by many operators, has expressed concern that further businesses may be targeted in the crackdown.

In the past, state legislators have struggled to establish regulatory control for the fantasy-sports sector. Supporters of fantasy sports have argued that the contests are not considered gambling since they are based on talent rather than chance.

According to bookie PPH sources, Trombetta sent the letters while a court dispute over a 2021 contract between the state and the Seminole Tribe rages on. The agreement gives the tribe a monopoly over sports betting in Florida.

Online bets from anywhere in the state would be processed through servers on tribal territory according to a “hub and spoke” system outlined in the deal. The Seminoles will “exclusively conduct” sports betting under the terms of the agreement, but other operators will be able to host fantasy sports games.

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