Controversy erupted when the inaugural Executive Director of the Florida Gaming Control Commission abruptly left in December to take a lobbying job with FanDuel.
Ethical Dilemma
Louis Trombetta, Florida Gaming Control’s first executive director, left his position in December 2024 to take a job with one of the companies under his regulatory authority.
“I’m thrilled to join FanDuel and transition from a regulatory role to working with an operator that is committed to building this industry in a sustainable manner,” said Trombetta. “I look forward to contributing to their continued success and helping to shape the future of the industry.”
However, Republican Representative John Snyder didn’t think his quick exodus passed the sniff test and has sponsored a bill that would ensure it wouldn’t happen again. Snyder’s Florida bill, HB 1467, would ban any future FGC executive director from working for any fantasy sports platform for two years after leaving the agency.
“Any time you have a regulator in a position to make significant decisions on the industry, I think it’s important they sit on the bench for a little bit before they get back into it,” Snyder said in an interview.
The Back Story
Louis Trombetta took a hard line against daily fantasy sports platforms operating in the state that also offered parlay-style wagers on a set list of players and team performances. This blurred the line between bookmaking and traditional DFS offerings, which caught the attention of the FGC.
Under Trombetta’s watch, those DFS companies, including PrizePicks, Underdog, and Betr, were issued two cease-and-desist orders beginning in 2023, stating all fantasy gaming not included in the compact with the Seminole Tribe was not only illegal but would be prosecuted criminally.
In an odd twist, the two DFS pioneers that were operating daily fantasy sports in Florida, FanDuel and DraftKings, were not issued cease-and-desist letters. However, it should be noted neither company offered the parlay-style wagering opportunities found at the other three sites.
Selective Enforcement Concerns
The FGC’s failure to include FanDuel and DraftKings in its legal action caught the attention of Florida Senator Joe Gruters, who wrote to Trombetta, saying, “I am concerned that the Commission is applying an interpretation that is not supported by law and that the Commission may be selectively enforcing its interpretation.”
Gruters was later assured by Trombetta that both FanDuel and DraftKings would also be issued a cease-and-desist letter, but that never manifested.
Underdog Pushes Back
Underdog Founder and CEO Jeremy Levine posted to X, noting the inconsistency, writing, “We strongly disagree with their assessment. We will continue operating our fantasy contests in Florida as we engage with the Commission and elected officials.”
Underdog would eventually leave the Florida market in March 2024 after a second round of cease-and-desist letters, with Trombetta issuing the following letter under the seal of the Florida Gaming Commission.
“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.”
Underdog and PrizePicks quickly returned to the Florida gaming market in late April 2024 under a new peer-to-peer format and not peer-to-house, which legally allows them to operate their parlay-style format in addition to traditional daily fantasy sports.
