Compliance Updates

Florida Targets Fantasy Sports Firms Over Possible Illegal Betting Games

Published

2 years ago

September 26, 2023

Florida gambling regulators have sent cease-and-desist letters to three daily fantasy-sports operators accused of offering potentially illegal mobile betting games and threatened legal action if the sites don’t immediately stop.

Commission Executive Director Lou Trombetta sent letters warning the three companies that they “may be offering or accepting illegal bets or wagers” from Floridians and “may be promoting and conducting an illegal lottery.”

The alleged conduct is “strictly prohibited in Florida and constitutes criminal activity,” Trombetta wrote.

The letters targeted Underdog Sports, LLC, which is based in Brooklyn, N.Y; SidePrize LLC, also known as Performance Predictions LLC, doing business as PrizePicks, which is based in Atlanta; and Betr Holdings, Inc., which is based in Miami.

In fantasy sports, players can draft rosters of actual athletes, with the winners of fantasy games determined by the statistics of the athletes. Many games, like office pools, last all season.

The three companies offer what are known as “parlay-prop-style” games that could be more similar to sports-betting games that are off-limits in Florida.

“Under Florida law, 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,” Trombetta’s letter said. “Accordingly, in Florida, sports betting may be lawfully conducted only pursuant to a gaming compact. … Further, receiving such illegal bets and wagers and aiding or abetting such criminal activities constitute separate felony offenses. … Lotteries are also strictly prohibited in Florida.”

A gaming compact is an agreement reached with the state.

The commission did not send letters to DraftKings and FanDuel, which have dominated the fantasy-sports market in the decade since the online games launched.

Stake - Best Online Casino & Sports Betting Platform

It was unclear Friday if the commission would crack down on other operators in the future, but emails show the gambling overseers could be casting a broad net.

“As you might imagine, my exec team asking what the letter means and seeking actionable advice, pretty urgently. Would like to discuss the substance at some point, but if you can help with one question, it would be great. Namely, Underdog operates multiple paid fantasy formats (season-long drafts, daily drafts, pick’em) and I just want to confirm my reading of the letter, which is that the legal conclusion applies to all paid fantasy contests — e.g., all of our contests — and not just particular types,” Nicholas Green, Underdog’s general counsel, wrote Friday to Ross Marshman, the commission’s general counsel.

“Your reading of the letter is correct,” Marshman replied.

John Lockwood, an attorney hired by multiple operators, warned that other companies could be swept up in the crackdown.

“The commission staff confirmed to me that the language in the letter broadly applies to all paid fantasy sports contests, and they are not aware of any paid fantasy sports company operating legally in Florida. We disagree on the merits and will be working with the commission and potentially the Legislature so we can ensure Florida sports fans can continue to play,” Lockwood said.

State lawmakers in the past have grappled with creating regulatory oversight for the fantasy-sports industry, to no avail. Proponents of fantasy sports have insisted that the contests are games of skill, not chance, and thus are legal under state gambling laws.

Trombetta issued the letters as a legal battle continues over a 2021 compact reached by the state and the Seminole Tribe. That deal gave the tribe control over sports betting in Florida.

A “hub and spoke” plan in the agreement would allow gamblers anywhere in the state to place bets online, with the wagers run through servers located on tribal lands. The deal requires sports betting to be “exclusively conducted” by the Seminoles but allows other operators to run fantasy sports contests.

Owners of West Flagler Associates and Fort Myers Corp., doing business as Bonita Springs Poker Room in Southwest Florida, filed a lawsuit challenging the compact, saying it violated federal law and would cause a “significant and potentially devastating impact” on their operations.

A federal judge in Washington, D.C., in November 2021 ruled that the deal violated a key Indian gambling law. But a three-judge panel of the U.S. Circuit Court of Appeals for the District of Columbia in June reversed that decision. The appellate court last week denied a request for what is known as an “en banc” rehearing before the full court.

The pari-mutuel owners filed a motion saying they would ask the U.S. Supreme Court to weigh in, arguing the panel’s decision conflicts with other appellate rulings and “enables an extreme shift in public policy on legalized gaming that, once started, may be difficult to stop.”

Up Next

Bally’s Names Don Westcott as SVP, Global Chief Compliance Officer, and Tammi Barlow as Inaugural VP of Global Responsibility and Social Impact

Don't Miss

BetMGM and Kindbridge Behavioral Health Pioneer Mental Health Access Program for Problem Gamblers in Colorado

Compliance Updates

VIP Play Obtains Interim West Virginia iGaming and Sports Wagering Management Service Provider Licenses

Published

30 minutes ago

April 3, 2025

Niji Narayan

VIP Play Inc. announced the approval of its interim License in West Virginia for both Sports Wagering and iGaming managed services. This follows the recently announced market access partnership between VIP Play and Delaware North’s Wheeling Island Casino.

This milestone marks the company’s initial expansion beyond Tennessee, where it currently operates as a mobile Sports Wagering Operator. The interim License in West Virginia also adds iGaming to the company’s book of business, and allows VIP Play to participate in the rapidly expanding i-Gaming industry. VIP Play expects to begin serving West Virginia customers in the coming months.

Bruce Cassidy, VIP Play CEO & Chairman of the Board, said: “The acquisition of our interim Sports Wagering and i-Gaming License in West Virginia marks a significant milestone in our journey to expand, underscoring our commitment to provide innovative experiences to a wider audience. As we grow our presence, our dedication to excellence stands firm, and we’re excited to play a role in enriching West Virginia’s dynamic gaming community.”

Compliance Updates

QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

Published

32 minutes ago

April 3, 2025

George Miller

QTech Games sharpens its LatAm focus with MINCETUR licence in Peru

New certification for emerging-markets leader arrives ahead of key industry summit in Sao Paulo and awards recognition

QTech Games, the leading game aggregator for emerging markets, has had its platform and games successfully approved for the Peruvian market, demonstrating that its premier B2B platform and all-encompassing content conforms to the latest legislative updates to enhance and regulate Peru’s local gaming environment.

Peru’s Ministry of Foreign Commerce and Tourism (MINCETUR) has now issued an online gaming licence to QTech Games, whereby all its platform products and games are now deemed legally permitted. This includes its new software service for retail, QTech Hybrid, which allows land-based partners to scale their operations online. QTech Hybrid simplifies transactions by enabling deposits, withdrawals and gameplay while allowing access to players both in-shop and on personal devices.

This breakthrough hybrid solution has quickly won clients and awards in the comparably fragmented African market (most recently in March for Best Innovation at AGE Lagos), and now promises to do likewise across LatAm, where QTech Games has already signed several major clients for both its aggregation platform and its QTech Hybrid solution. This activity has seen it again nominated for Best Aggregator at the SiGMA Americas Awards, which kickstart the SiGMA Americas summit (7-10 April) next week, as the igaming world converges on Sao Paulo for a must-attend conference in another of QTech Games’ “focus markets” for 2025.

Philip Doftvik, QTech Games’ CEO, said: “It’s fantastic to have certified our aggregation platform in Peru via MINCETUR – and I’m pleased to say we have more such approvals pending across the continent. We attended fantastic events in Rio and, more recently, SAGSE 2025 in Buenos Aires – and anticipate more of the same at SiGMA Americas in Sao Paulo next week, where we’re also thrilled to have been shortlisted for Best Aggregator at their LatAm Awards. Given the venue, Brazil will be dominating the discussion for many at SiGMA Sao Paulo. However, we’ll also be looking beyond Brazilian borders this year, and are already active in Mexico, Chile, Colombia and Paraguay. We know our QTech Hybrid solution will work very well wherever we put a pin on the LatAm map.”

QTech Games delegates will be present at five more LatAm summits in 2025, with SiGMA Americas (7 April) the next port of call – followed by GAT Expo Cartagena (28 April), SBC Americas (13 May), Peru Gaming Show (18 June) and GAT Expo Mexico (28 Aug).

Compliance Updates

IGSA Welcomes Eclipse Compliance Testing as a New Vertical Member

Published

47 minutes ago

April 3, 2025

Niji Narayan

The International Gaming Standards Association (IGSA) has welcomed Eclipse Compliance Testing as a new Vertical member.

IGSA President Mark Pace said: “IGSA is excited to welcome Eclipse Compliance Testing as a new member, as their extensive knowledge in gaming product compliance testing for over 25 years will be invaluable.”

Eclipse Compliance Testing Founder Nick Farley said: “Eclipse Compliance Testing is pleased to add its voice and expertise in regulatory compliance testing. We have been on the fore front of the battle to help define what is legal and what is not and hope to contribute to the ongoing regulatory work that IGSA has undertaken.”

Eclipse Compliance Testing (ECT) is a full-service ISO 17025, 17020 and GSA accredited regulatory compliance Independent Test Laboratory (ITL) for the casino gaming, lottery, and amusement industries.

Founded in 2000 by gaming compliance testing pioneer, Nick Farley, and former General Electric executive, Janice Farley, ECT serves over 250 regulated markets globally with regulatory testing for devices and systems in Class III, Class II, skill games, electronic pull-tabs, iGaming, mobile gaming, sports wagering, DFS, and charitable gaming markets.

ECT also provides assistance in the preparation of technical standards and regulations, expert testimony services on behalf of legal professionals, federal, state and local law enforcement agencies, on-site inspections and audits, consulting and technical advice, forensic evaluations, and training.

ECT is a current member of the International Gaming Standards Association (IGSA), North American Gaming Regulators Association (NAGRA), the American Amusement Machine Association (AAMA) and the Oklahoma Tribal Gaming Regulators Association (OTGRA).