Florida Lawmakers Act to Close Loophole After Regulator Joins FanDuel

Florida lawmakers are advancing a bill to stop state gambling regulators from switching to jobs in the industry they once supervised. This follows Louis Trombetta, Florida’s former lead gaming regulator taking a lobbying job with FanDuel after leaving his position.

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

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

Trombetta headed 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 FanDuel and DraftKings even though they also offer fantasy sports betting in Florida.

His choice to work for FanDuel right 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 sports have 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 crackdown on 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 FanDuel and DraftKings untouched even though they offer similar services.

Sen. Joe Gruters spoke up about the GCC’s approach. He said Trombetta had promised him that FanDuel and DraftKings would face similar actions. However, those companies never got orders to stop their operations.

Legal experts say the situation sheds light on potential conflicts of interest in 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.

FanDuel stood 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. FanDuel also pointed out that Trombetta took steps to cut off his access to sensitive regulatory information before he joined them.HB 1467 introduced 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.