A Florida lawmaker has introduced a measure to legalize certain fantasy sports contests in the wake of the Florida Gaming Control Commission calling on some gaming companies to throw in the towel on their fantasy sports games.
Rep. Jason Shoaf (R-Port St. Joe) introduced House Bill 679 at the end of November to exempt certain fantasy sports contests from being subject to state gambling statutes. The bill is now in the state House of Representatives’ Regulatory Reform & Economic Development Subcommittee.
Under the provisions of the bill, “(the term) ‘fantasy sports contest’ includes simulation sports games and means a contest in which a participant pays an entry fee and manages a fantasy or simulation sports team composed of athletes from a professional sports organization with the opportunity to win a cash prize.”
In addition, prizes and awards in such contests must be disclosed to players before they can enter the contests, the text of the bill states. And fantasy sports contests are specifically defined as games of skill.
“All winning outcomes reflect the relative knowledge and skill of the fantasy sports contest participant,” the bill says. “All winning outcomes are determined predominantly by accumulated statistical results of the performance of more than one individual.”
The bill was introduced after the Florida Gaming Control Commission sent letters to companies such as Miami-based Betr Holdings Inc. The commission said in a letter that it had information showing Betr Holdings may be offering or accepting illegal bets from Floridians.
“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,” the letter says. “... Accordingly, in Florida, sports betting may be lawfully conducted only pursuant to a gaming compact.”
The commission also calls on Betr Holdings to cease and desist accepting wagers made in connection with fantasy sports.
Florida attorney Kevin Jursinski, who specializes in gambling and entertainment law, told the Florida Record that HB 679 attempts to define something that is already understood to be the case.
“I was surprised that the lawmaker had to define it, although quite frankly I don’t know if it goes far enough,” he said
Generally, an activity is considered gambling when three elements are present, according to Jursinski.
“Is there a prize, is there a chance and are you paying money to get something out of it?” he said. He added that because fantasy sports contests focus on skill, player evaluations and statistical analysis, it doesn’t fit the definition of illegal gambling.
The bill helps to clarify gray areas in the law and would provide statutory protection for those involved in certain kinds of fantasy sports, according to Jursinski
“I think this is putting into statute what everybody knows is true,” he said, noting that fantasy leagues are common in many Florida workplaces.
A winning outcome in fantasy sports contests cannot be based on a score or point spread – or on the single performance of one athlete, the text of the bill states. Nor can it be related to the performance of collegiate, high school or youth sports, according to HB 679.
Violations of the measure would be punishable by fines of $1,000 and be considered a misdemeanor of the first degree. It would be enforced by the attorney general or a state attorney.