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Daily Fantasy Sports sites were expected to leave the state of Florida after that's state's Gaming Control Commission sent a cease and desist order to three companies: PrizePicks, Underdog Fantasy and Betr. For not it's business as usual.
These and other DFS sites have undergone scrutiny of late for offering pick'em type games that too closely resemble player props and parlays. PrizePicks and Underdog Fantasy in particular have begun overtaking early DFS behemoths DraftKings and FanDuel over the past year.
The letters sent to the three DFS companies claim each operator is offering wagers on contests of skill. This is prohibited under Florida Statute Section 849 Chapter 14.
The letter reads:
“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."
PrizePicks and Fantasy Underdog pulled out of Maryland and West Virginia last year after receiving similar cease and desist orders. Wyoming recently demanded the two companies stop doing business in that state.
PrizePicks has since responded to the Florida action.
“PrizePicks is participating in the regulatory review of paid fantasy sports operators in Florida by the Florida Gaming Control Commission. We are eager to meet with the Executive Director, and the Commission, to discuss our business and our skill-based gaming platform,” a PrizePicks spokesperson said in a statement. “At this time, there is no change to our business operations within the state. We are committed to ensuring that our valued members continue to enjoy their right to play the fantasy sports games they love.”
Daniel Wallach, one of the preeminent attorneys in the gaming space says to expect fireworks.
"This could develop into a court case if the companies wish to challenge the cease-and-desist letters. That’s what happened in New York nearly 8 years ago."
He added Sunday: "Cease-and-desist OR seek declaratory relief from a state or federal court. The FGCC’s correspondence to the fantasy operators does not appear to leave room for anything in between."
- Gilbert Horowitz, Gambling911.com
