The Arkansas Department of Finance and Administration (DFA) has sent cease and desist letters to daily fantasy sports (DFS) operators Underdog Sports and PrizePicks.
The DFA believes the pair to be offering unlicensed sports betting in violation of Amendment 100 to the Arkansas Constitution.
According to the DFA, the operators have in the last year offered a product associated with sports betting: “player prop bets.”
In Arkansas, traditional DFS websites operate legally, but state law does not allow these operators to offer unlicensed sports betting.
DFA Regulatory Administrator Trent Minner said: “Back in the day, places that tolerated illegal gambling were referred to as ‘wide open.’
“The Internet is today’s equivalent of a ‘wide open town’ where unlicensed gambling thrives outside of the taxation and age-verification requirements required by the law. As the state’s regulator of licensed sports betting, DFA is putting these companies on notice that Arkansas is not ‘wide open.’”
DFA Secretary Jim Hudson added: “Arkansas law requires sports bets to be placed with a licensed sportsbook that is required to verify the age of the consumer. The state has an interest in protecting Arkansas children from operators seeking to exploit underage Arkansans.
Similar was seen in Florida back in September.
Indeed, Underdog Sports, PrizePicks and Betr were sent cease-and-desist letters by the Florida Gaming Control Commission (FGCC).
It was stated that the DFS operators could be “offering or accepting illegal bets or wagers” and may also be “promoting and conducting an illegal lottery.”
