Underdog Sports Holding and SidePrize LLC, known better as PrizePicks, operate a daily fantasy sport competition in Arkansas, in this case fantasy football. Players create a team and earn points based on the fantasy team performance. In that respect, the team works like the traditional daily fantasy sports and is not illegal.
But according to the Department of Finance and Administration (DFA) of Arkansas, these two companies stepped over the line during the past year by utilizing player prop bets, which is considered sports betting under Arkansas law, and since these two companies think otherwise, they are unlicensed, as reported by KARK 4 News.
The DFA sent cease and desist letters to both firms for illegal sports betting.
In addition to the player prop bet violations, the sites do not verify the age of its players, which constitutes additional violations.
“Arkansas law requires sports bets to be placed with a licensed sportsbook that is required to verify the age of the consumer,” said DFA Secretary Jim Hudson. “The state has an interest in protecting Arkansas children from operators seeking to exploit underage Arkansans.”
