The Florida Gaming Control Commission (FGCC) has ordered PrizePicks, Underdog Fantasy, and Betr to shutter operations in the Sunshine State, according to a letter obtained by XLMedia. Underdog, which has announced plans to enter the sports betting industry, confirmed to SBC Americas that the operator will be exiting the Florida market.
The letter, sent on Jan. 31, orders the three operators to cease and desist “offering or accepting illegal bets or wagers from [Florida] residents” and “conducting any illegal lotteries.” The alleged illicit wagers stem from the group’s pick’em style contests, which mimic proposition betting in some jurisdictions across America. Florida has taken a similar stance leading to lawmakers introducing legislation that supports daily fantasy contests.
PrizePicks, Underdog, and Betr have until March 1 to exit Florida before facing consequences, which could include the matter being referred to the Attorney General’s Office of Statewide Prosecution.
“If this cessation is completed within that timeframe, the Commission will deem the company and all its officials, directors, and employees have complied with the demands of the cease and desist order, and the Commission will not take further action, said FGCC Executive Director Louis Trombetta in the letter.
Despite the looming exit of the trio of operators, FanDuel and DraftKings continue to offer paid fantasy contests in Florida. The two entities, which are the largest fantasy operators in the U.S., have yet to receive cease-and-desist correspondence from the FGCC.
FanDuel and DraftKings’ ability to maintain Florida as a market for pick’em-style contests comes as the FGCC says that all paid fantasy contests violate Florida law, including daily drafts, season-long games, and pick’em-style contests offered by Underdog and others.
“Betting or wagering on the result of contests of skill, such as sports betting, including fantasy sports betting, is strictly prohibited and constitutes a felony offense unless such activity is otherwise exempted by statute,” said the FGCC in a letter to Underdog last year.
Flurry of changes for PrizePicks
On Monday, PrizePicks announced that it would cease operations of its pick’em-style contests in New York amid regulatory changes that ban games that resemble prop betting.
PrizePicks, which will continue to offer free-to-play contests in New York, was later fined $15 million by the New York State Gaming Commission for operating in the state without a wagering license. PrizePicks is looking to secure a wagering license in New York, which would provide the company with access to America’s largest online gaming market.
PrizePicks will continue to entertain users in other markets with a new product, PrizePicks Arena. The offering allows users to compete for a guaranteed prize pool in groups. PrizePicks Arena, which launched in January, debuted in Alabama, Tennessee, West Virginia, and Wyoming with plans to bring the product to other states across the country.
