Underdog Fantasy & PrizePicks receive cease and desist letters in Arkansas

Arkansas Underdog PrizePicks
Image: Shutterstock

Two daily fantasy sports operators have been ordered to leave another U.S. market.

The Arkansas Department of Finance and Administration (DFA) has sent cease and desist letters to Underdog Fantasy and PrizePicks for their offering of player prop-style contests, which violates Amendment 100 to the Arkansas Constitution. Arkansas allows fantasy operators to offer traditional contests under the protection of Act 1075 of the 2017 Regular Session. However, Arkansas law considers pick’em-style contests as betting.

Underdog and PrizePicks were not required to ensure the proper age of their players In Arkansas and the operators did not pay taxes on the revenue generated from contests.

“The internet is today’s equivalent of a ‘wide open town’ where unlicensed gambling thrives outside of the taxation and age-verification requirements required by the law,” said DFA Regulatory Administrator Trent Minner. “As the state’s regulator of licensed sports betting, DFA is putting these companies on notice that Arkansas is not ‘wide open.’”

Arkansas authorized online sports betting in 2022 with three state-sanctioned operators.

Tough start to the new year for fantasy operators

Earlier this week, the Florida Gaming Control Commission ordered PrizePicks, Underdog and, Betr to exit the state by March 1 for “offering or accepting illegal bets or wagers from [Florida] residents,” according to cease and desist letters sent in January. If the operators don’t exit by March 1, the matter could be referred to the Attorney General’s Office of Statewide Prosecution. Underdog and PrizePicks have already confirmed their exit.

PrizePicks’ decision to leave Florida came after it was handed a $15 million fine by the New York State Gaming Commission for operating without a wagering license. The operator is looking to secure a license in New York and could also re-enter Florida in the future.