Florida Bill Would Halt Gaming Regulators From Immediately Becoming Lobbyists

Florida’s lobbying ban will expand if a recent bill passes legislative muster after the state’s first executive director of its gaming commission turned in his papers in December to accept a job with one of the industry’s leading sports betting and Daily Fantasy Sports (DFS) operators.

Switching Sides

Louis Trombetta, a gaming attorney and the first executive director of the Florida Gaming Control Commission, was known as a no-nonsense regulator who forced three DFS companies out of the state, at least for a little while, until they became industry-compliant with Florida law.

Needless to say, PrizePicks, Underdog, and Betr are no fans of Louis Trombetta, as he sent two rounds of cease-and-desist letters to each operator, forcing them to shutter operations in the Sunshine State due to their parlay-style pick’em offerings that blurred the line between sports betting and traditional daily fantasy sports contests.

Trombetta threatened the C-suite executives of all three companies with criminal prosecution if they failed to heed his agency’s demand. They ultimately departed in March 2024 but returned a month later after revamping their pick’em games from peer-to-house to peer-to-peer, precisely the same as the DFS contests the companies routinely offer.

Discrepancy in Enforcement

Two other DFS companies, FanDuel and DraftKings, were never issued the same letters, but it should be noted that neither was offering pick’em contests. However, it did raise concerns from at least one Florida lawmaker, State Senator Joe Gruters, who inquired about it.

“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 wrote in a letter to Trombetta.

In a follow-up communication, Trombetta assured Gruters that FanDuel and DraftKings would also be sent cease-and-desist letters, but that never transpired.

Trombetta’s Departure

But as the heavy hand of justice was coming down on those DFS operators, Trombetta was already making plans to vacate his seat and take a job with one of the companies that was under his regulatory governance, FanDuel.

In December 2024, Trombetta announced he was leaving his post as executive director of the Florida Gaming Commission to join the US gaming industry’s most popular platform.

“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.”

Fixing the Problem

Any semblance of impropriety is never a good look, regardless of the industry, and Trombetta’s abrupt departure from the FGC to join one of the companies that he failed to admonish made it all the more questionable.

Snyder’s Proposed Solution

Representative John Snyder, a Palm City Republican, decided that something needed to be done to ensure there would not be a repeat of a gaming regulator changing sides in the blink of an eye. Thus, he sponsored HB 1467, a bill that prohibits a state gambling regulator from working for a fantasy sports company for two years after leaving the position.

“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.

As for FanDuel, they had little to say about Trombetta joining their ranks and the eyebrow-arching it caused among some lawmakers and industry stakeholders.

“FanDuel is not a sports betting or iGaming license holder in the state of Florida and is not subject to regulatory oversight by the Florida Gaming Control Commission,” a company spokesperson said in a statement.

“FanDuel has no comment on the regulatory actions the state of Florida may have taken involving other companies,” added the spokesperson.