One Florida legislator is hoping to institute some new regulations into the cloudy legal landscape of Florida fantasy sports competitions.

Florida Sen. Travis Hutson (R-7) recently introduced the Fantasy Sports Contest Amusement Act (S1568) to legalize fantasy sports contests for licensed operators and for its markets to be regulated by the Florida Gaming Control Commission.

While several daily fantasy sports companies are currently operating in the state, according to the Florida Gaming Control Commission, none of them may be operating legally.

In letters sent to three daily fantasy sports operators this past September, the gaming control commission noted that “Under Florida Law, betting or wagering on the results 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.”

Legalizing Florida Fantasy Sports Contests

Hutson’s bill, which includes a companion bill setting operational fees, would legalize fantasy sports contests and licensed contest operators in the state. The legislation would prohibit any such fantasy sports contests that pit users against the house.

Florida’s legislative session will begin Tuesday, Jan. 9, and run through March 8.

According to the bill, all contests will be based on the skill and knowledge of the contest participants.

“All winning outcomes reflect the relative knowledge and skill of the contest participants and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sporting events,” the bill reads.

This likely prohibits the popular pick’em style fantasy games from operators such as Underdog Fantasy and PrizePicks.

A license for a fantasy sports contest operator will cost $1 million. Licenses will be valid for one year and will carry a renewal fee of $250,000.

It puts the regulatory burden on the Florida Gaming Control Commission, which will be able to revoke operator licenses, adopt regulatory rules, provide application requirements for operators, and determine which individuals or operators are not eligible for licensure.

Currently, the legality of fantasy sports in the state is murky. While several companies are currently operational in Florida, it’s likely not legal. Under the gaming commission’s FAQ answer as to whether daily fantasy sports are legal, the answer is “probably not.”

“Again, probably not. Unless you are placing a wager through sportsbooks operated by or in conjunction with the Seminole Tribe of Florida, you are most likely placing an illegal wager,” the commission notes on its website.

Gaming Control Commission Took Aim at Operators

In late 2023, the Florida Gaming Control Commission sent cease-and-desist letters to several fantasy sports operators in Florida. DraftKings and FanDuel, which are both also operating in the state, did not receive letters.

The commission sent letters to Betr, PrizePicks, and Underdog Fantasy on Sept. 19, which in part read “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.”

According to the three identical letters, which were signed by Louis Trombetta, executive director of the Florida Gaming Control Commission, fantasy sports betting is strictly prohibited under Florida law.

“Under Florida Law, betting or wagering on the results 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.”

The letters go on to say that sports betting in the state may be only lawfully conducted pursuant to a gaming compact.

“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,” the letter reads.

All three companies are still operating in the state.