Kansas Regulators Target Fantasy Sports Apps in Crackdown

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00:03 >> And let's close it out here with, it seems like every day, Sam,

00:07 there's a new story about a fantasy operator or a pick 'em operator

00:12 that is being challenged in their games.

00:14 And now Kansas has joined along the lines here,

00:18 underdog fantasy among some of them.

00:20 What's the latest there?

00:23 >> Yeah, once again, we're talking about fantasy sports apps

00:26 getting cracked down on in different states.

00:29 The story just came out yesterday on Legal Sports Report.

00:31 It's an exclusive on what's going on in Kansas.

00:34 Basically, we had this investigation that revealed six fantasy sports apps

00:39 were sent cease and desist letters by the Kansas regulators

00:43 in the last couple of months, including underdog fantasy.

00:47 Those cease and desists revolved around this memo,

00:50 which was circulated in Kansas, essentially saying,

00:53 hey, there's a bunch of fantasy sports apps that we don't really think

00:56 are sports apps, what they're offering is actually illegal gambling.

01:00 And we've seen that in states like Florida, New York, Wyoming, Michigan,

01:05 the list goes on and on.

01:07 These places that have targeted these apps that offer pick 'em games mostly,

01:11 which are essentially where you create a parlay of different player props.

01:16 You pick whether Jay LeBronson is going to go over two and a half threes,

01:20 and you combine that with whether or not LeBron James is going to get

01:24 over or under eight and a half assists or something.

01:27 And they call that a fantasy sports entry.

01:29 Some states allow it, but now they've been operating in this place

01:33 where they've just kind of been operating without getting word

01:37 on whether that's okay.

01:39 And now you've seen some states come back and say, hey, you need to leave.

01:42 So underdog left.

01:43 PrizePix is still there, confirmation on who else got these letters.

01:48 But the pick 'em games basically helped these companies rise to the top

01:52 of the fantasy sports app rankings.

01:54 They're the most downloaded apps in the app store throughout football season

01:58 for fantasy.

01:59 So to see them now getting cracked down on, it's going to be interesting

02:02 to see how they pivot, what they go to next, you know,

02:07 now that they're losing states like Kansas, like New York as well.

02:09 So it's another interesting development in the fantasy pick 'em space.

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