New Jersey and Florida Take Action Against Betting Operators
October 2, 2023

Making online bets or preparing fantasy teams may seem like an innocent and simple pastime, but there are rules for players to ensure fairness for everyone. That also means holding sports betting operators accountable. But what happens when operators skirt the rules?

Join us as we take a look at legal action taken against betting organizations after violating state regulations.

New Jersey vs PointsBet: What happened?

PointsBet recently committed three violations against New Jersey’s sports betting laws, resulting in a $25,000 fine. Although the violations occurred several months ago, the details have only been released recently.

One violation involved “pre-match bets” in 2021 that was placed once the game started, giving bettors an unfair advantage. Five bets came from the same bettor, who pocketed $28,000 after wagering $13,000. However, the bets were immediately voided after PointsBet realized their error, and the bettor was refunded their original wager amount.

The second violation came after a basketball game in 2022, in which bettors were allowed to bet on a New Jersey college basketball team. Two bets were initially placed when the market was open for 55 minutes, totaling $60. However, due to the New Jersey betting laws surrounding NCAA teams, both bets were canceled and voided.

In October 2021, PointsBet allowed underage betting on a popular MOBA game, League of Legends. The bettor was only 17 years old – under the legal minimum age of 18. The bettor made several bets totaling over a thousand dollars. After finding out their error, PointsBet voided the wagers.

PointsBet has since added new processes and programs to ensure that these mistakes will be avoided in the future, thus avoiding hefty fines and possible court cases.

Florida vs PrizePicks, Underdog Sports, and Betr: What happened?

Florida recently sent various cease and desist letters to different fantasy sports operators who tried to offer illegal forms of betting in the state. They also threatened legal action if these activities continued.

Three fantasy sports companies, PrizePicks, Underdog Sports, and Betr, offer “parlay-prop-style” games that are comparable to actual sports betting games. The problem is that real sports betting is off-limits in Florida, and the games the three companies offered veered dangerously into such betting type.

Florida’s gaming commission has not confirmed if they will crack down on similar activities from other fantasy sports operators in the future. However, there are rumors of the state planning to “cast a wide net” in the future if it becomes a bigger problem.

An attorney hired by multiple fantasy sports operators warned that other companies could be ensnared in the net and receive cease and desist letters, too. Casting too broad of a net could cause smaller fantasy sports operators to cease operations within Florida.

Legal enforcement of fantasy sports has proceeded to become a daily occurrence on various internet arcades by law enforcement officials, causing cease and desist letters to be issued frequently. Those who ignore the warning risk facing legal action.