Florida Lawmakers Act to Close Loophole After Regulator Joins FanDuel

House Bill 1467, sponsored by Rep. John Snyder, aims to establish a two-year restriction preventing Florida’s gambling regulators from joining fantasy sports or betting companies after leaving officeImage Source: Shutterstock.com

Florida lawmakersare advancing a billto stop state gambling regulators from switching to jobs in the industry they once supervised. This follows Louis Trombetta, Florida’s former lead gaming regulator ngaking a lobbying job with FanDuelafter leaving his position.

House Bill 1467 Introduces Two-Year Cooling-Off Period for Florida Gambling Regulators

House Bill 1467led by Rep. John Snyder, seeks to create a two-year waiting periodfor Florida’s gambling regulators before they can work for fantasy sports or betting companies. Snydersaid the bill aims to ensure fairness and avoid potential conflicts of interest, reported the Miami Herald.

Trombettaheaded Florida’s Gaming Control Commission (GCC)from its start in 2022 as executive director. He took a hard line on fantasy sports betting rules. He sent cease-and-desist orders to several smaller companies — PrizePicks, Underdog, and Betr— saying their fantasy sports games broke state gambling laws. However, he did not do the same to big players FanDueland DraftKingseven though they also offer fantasy sports betting in Florida.

His choice to work for FanDuelright after quitting his regulatory job worried lawmakers and gaming industry experts. Some people wondered if his actions as a regulator and his focus on certain operators gave bigger companies an unfair edge.

Fantasy sportshave always operated in a legal gray area in Florida. While the state controls sports betting under a deal with the Seminole Tribe, it views fantasy sports contests, as games of skill, not chance. This allows them to run outside normal gambling laws. However, when platforms started offering parlay-style bets — where players bet on multiple game results and player stats — these contests began to look like regular sports betting.

Critics Question Why FanDuel and DraftKings Escaped Florida’s Fantasy Sports Crackdown

People saw Trombetta’s crackdownon smaller operators as a way to enforce the state’s agreement with the Seminole Tribe. This deal gives the tribe exclusive rights over certain types of gambling. Critics though, said the selective enforcement left FanDueland DraftKingsuntouched even though they offer similar services.

Sen. Joe Grutersspoke up about the GCC’s approach. He said Trombettahad promised him that FanDueland DraftKingswould face similar actions. However, those companies never got orders to stop their operations.

Legal experts say the situation sheds light on potential conflicts of interestin regulatory agencies. Officials might have future job prospects that affect how they make decisions. Anthony Alfieri, who teaches ethics at the University of Miami, stressed the need to tighten rules. This would stop regulators from using their positions to benefit themselves.

FanDuelstood by its choice to hire Trombetta. The company said Florida does not class its fantasy sports contests as gambling. So, they do not fall under the commission’s control. FanDuelalso pointed out that Trombettatook steps to cut off his access to sensitive regulatory information before he joined them.HB 1467introduced in early March, is now under review by the Industries & Professional Activities Subcommittee. The bill, if it passes, would put a two-year limit on gambling regulators moving to industry jobs. It would also set up official rules for fantasy sports in the state.