The Florida Gaming Control Commission sent cease-and-desist letters to Underdog Fantasy, Betr, and PrizePicks to end operations in Florida or have the matter be referred to the Attorney General’s Office of Statewide Prosecution.

The commission sent copies of the three letters to Saturday Down South this afternoon. Each letter asks the daily fantasy sports operators to cease and desist “offering or accepting illegal bets or wagers from [Florida] residents” and “conducting any illegal lotteries” within 30 days of Jan. 31.

The gaming control commission sent cease-and-desist letters to the operators on Sept. 19, 2023, as well.

Ordered to Discontinue Florida Contests

An Underdog Fantasy spokesperson confirmed the company received the letter and would be end Florida operations on Friday, March 1. A PrizePicks representative also confirmed it would cease its current games on that date.

“We can confirm that we have reached a negotiated resolution with the FGCC to cease operating our current contests on March 1. That resolution, however, makes very clear that we are welcome to operate in the state in the future and we will provide additional details on go-forward operations in due course,” the PrizePicks spokesperson said.

Allison Harris, spokesperson for the Coalition for Fantasy Sports, said the organization will continue to fight for its operators to remain in the state. The coalition represents Sleeper, Betr, Underdog Fantasy, and PrizePicks.

“The Coalition for Fantasy Sports is committed to ensuring its member companies remain in the state and is actively engaging with Florida policymakers to protect the ability of fantasy sports fans to engage in the games of skill they enjoy,” she said.

The letters, signed by Florida Gaming Control Commission Executive Director Louis Trombetta, notified the operators that if the games were not discontinued in the state during the 30-day timeframe, the matter would be 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, including referral to the Office of Statewide Prosecution or to any State Attorney.”

Only Underdog Fantasy, Betr, and PrizePicks received the letters. FanDuel and DraftKings are still operating in the state and have yet to receive any direct order from the Florida Gaming Control Commission to cease.

The issue has been brewing in Florida for the last five months, as the Gaming Commission originally sent cease-and-desist letters to the operators in September. The commission sent letters to the three companies on Sept. 19, 2023, 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.”

An industry source familiar with the Florida DFS situation told Saturday Down South the second round of cease-and-desist letters was not surprising.

“This is Florida, the Seminoles get what they want from the government. Always.”

Tough Week for PrizePicks

This could be the second state PrizePicks is forced to cease operations in just this week. On Monday, the daily fantasy sports operator notified its New York customers that its traditional pick’em paid contests would end in the state on Wednesday, Feb. 14, at 11:59 p.m. It continues to offer its free-to-play contests in New York.

PrizePicks did not have a license to operate in New York. The company announced it would work with the New York State Gaming Commission to acquire a license to allow its new peer-to-peer product to operate in the state.

If PrizePicks receives a license from the gaming commission, it will be able to offer its newest service, PrizePicks Arena. The peer-to-peer fantasy sports game pits users against one another in paid prizes instead of against the house.

According to PrizePicks, users compete for guaranteed prizes in Arena by being placed into groups matching their number of entries, selected entry fee and experience level. The game offers users unique opportunities to win prizes for their entries by creating the highest scoring entry within their group.

Arena is currently live in Alabama, Tennessee, West Virginia, and Wyoming.