Florida lawmaker seeks to close loophole after gambling regulator joins FanDuel

A Florida lawmaker has introduced a bill aimed at preventing gambling regulators from immediately taking jobs in the industry, following concerns over the state's former top gaming official joining FanDuel shortly after stepping down.  

Louis Trombetta, Florida’s first-ever executive director of the Gaming Control Commission, resigned in December 2024 and later that month joined FanDuel, one of the largest fantasy sports and betting companies in North America, as its director of government relations. His move has sparked concerns about potential conflicts of interest and the revolving door between regulators and the industry.  

In response, Rep. John Snyder (R-Palm City) introduced House Bill 1467, which would bar Florida’s gambling regulator from working for fantasy sports or gambling companies for two years after leaving office, as reported by Miami Herald.

“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.  

The bill also seeks to formally legalize and regulate fantasy sports in Florida, an area that has been in a legal gray zone under current state law.  

As Florida’s top gambling regulator, Trombetta took aggressive action against three fantasy sports companies—PrizePicks, Underdog, and Betr—by issuing cease-and-desist letters in 2023. The companies were told their parlay-style fantasy games, which allowed users to bet on multiple outcomes, were illegal under Florida law.  

However, FanDuel and its major competitor, DraftKings, were never issued such orders, despite also operating fantasy sports contests in Florida. The Gaming Control Commission has not clarified why they were excluded from enforcement.  

Sen. Joe Gruters (R-Sarasota) expressed concerns over the discrepancy, writing in a letter to Trombetta at the time:  “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 later said Trombetta assured him that DraftKings and FanDuel would also receive cease-and-desist orders, but those letters were never sent.  

FanDuel has defended its decision to hire Trombetta, stating that it is not regulated by the Florida Gaming Control Commission because its fantasy sports contests do not fall under Florida’s gambling laws.  

“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.  

FanDuel also noted that Trombetta eliminated his access to confidential regulatory data before leaving his position.  

Legal experts have mixed opinions on the ethical implications of Trombetta’s move.  

Michael Klein, an ethics and law expert at the University of Miami, said the situation highlights concerns over regulatory capture—where former government officials use their influence to benefit private industry.  

“[It] raises long-troubling issues with respect to potential conflicts of interest, risks of regulatory capture, and opportunities to misuse a public position to secure personal benefit,” Klein said.  

However, Bob Jarvis, a gambling law professor at Nova Southeastern University, said the situation is not unusual for a new regulatory body.  

“Does this look bad? Yeah, it looks bad. But is this shocking? Is it surprising? Is it the first time it’s ever happened? No, no and no,” Jarvis said.  

Florida’s gambling industry remains in flux, with the Seminole Tribe holding exclusive rights to sports betting under a 2021 compact with the state.  

The tribe has argued that parlay-style fantasy sports games violate its exclusivity agreement, prompting Trombetta’s crackdown on newer platforms like PrizePicks, Underdog, and Betr.  

Those companies have since adjusted their offerings to mirror FanDuel and DraftKings’ traditional fantasy sports models, which remain operational in Florida.