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Daily Fantasy Sports Operators May Be Violating Florida Law: Indictments Loom?

by | Oct 12, 2015 | Uncategorized | 0 comments

The PokerStars backed StarsDraft has opted to exit the Florida market while other Daily Fantasy Sports operators may soon follow suit in wake of news that a federal grand jury is being convened by the U.S. Attorney’s office in Tampa to determine if some yet-to-be-named DFS companies have been in violation of local state law.

A federal law banning most forms of online gambling specifically excludes fantasy sports though at the time of passage in 2006, the Daily Fantasy Sports model did not exist.  Many believe that the act of playing in fantasy contests on a daily or weekly basis mimics gambling more so than the season long leagues that were the focal point for an exception in 2006.

“I learned of the investigation late in the day on Friday,” Florida-based gaming attorney Dan Wallach told Legal Sports Report. “I cannot reveal how I found out, but the information was unassailable in my opinion, especially given the recent cryptic comments made by Florida’s attorney general.”

“I had heard rumors,” Wallach continued, “of an ongoing federal criminal investigation— they had been circulating since August — and what I ultimately came to learn on Friday finally connected all the dots.”

Neither of the big two DFS companies – DraftKings or FanDuel – offered a comment as to whether they will continue operating in Florida when asked by LSR.

– Aaron Goldstein, Gambling911.com