Florida’s compact with Seminole tribe is back, reauthorizing sports betting in the sunshine state
Sports betting is once again legal in Florida.
It’s the result of a ruling handed down by a federal appellate court Friday, which reinstated the State of Florida’s compact with the Seminole Tribe.
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The ruling could provide a big boost for state revenues, as the compact with the tribe guaranteed the state half a billion dollars a year.
It was projected to top $20 billion in additional revenues over the course of the 30-year deal.
The deal struck by Governor Ron DeSantis and the Seminole Tribe was put on hold by a federal court just a few months after its passage in 2021.
The ruling came only about a month after the Tribe’s Hard Rock Sports Book app went live.
Now, nearly two years later, the deal is back in play.
“This case ultimately is gonna land at the doorstep of the US Supreme Court,” said Daniel Wallach, a gaming attorney who has been closely watching the case.
Wallach explained unlike the district court, which ruled federal Indian gaming law doesn’t allow for tribes to offer games off tribal lands, the appellate court ruled the Seminoles could offer internet gaming statewide in the form of sports betting.
“The language in the statute makes crystal clear that gaming activity on Indian lands are the outer limits of what a compact can authorize. This is the first court that reached a different conclusion,” said Wallach.
But both federal courts didn’t buy an argument put forth by the Governor and lawmakers, who publicly contended by housing servers for online sports betting on tribal lands, bets placed through those serves elsewhere in the state technically occurred on tribal lands.
It could set up another challenge in state court, as any expansion of casino gaming in Florida off tribal lands is constitutionally required to be approved by voters.
That constitutional language was added back in 2018 when Florida voters overwhelmingly approved Amendment 3.
But Wallach argued an Amendment 3 challenge may be more difficult to make than one might think.
“I think there’s a bonified question of whether sports betting is properly considered within the purview of Florida Amendment 3, which only extends to casino gambling that was in existence at the time of the amendment. Sports betting is not like casino gambling,” said Wallach.
Beyond the legal arguments, some have questioned whether the compact is truly a good deal for the state.
“I really don’t know what the next steps are, but listen I voted against this bill because I thought one, it was unconstitutional,” said Former State Senator Jeff Brandes, who now heads the Florida Policy Project.
Brandes was the lone no-vote in the Florida Senate when the compact was approved in 2021.
He argued even if the latest ruling does stick, it’s bad policy to hand the Seminole Tribe a monopoly on sports betting in the 3rd largest state in the nation.
“And potentially not get as much revenue as we could by allowing a competitive open market for this process,” said Brandes.
Wallach also noted the ramifications of the latest ruling could have impacts far beyond Florida.
“Tribes are going to be using this ruling to get online sports betting and I-gaming, you know, online casino gaming vis-à-vis their compacts without having to take the issue to the electorate,” said Wallach.
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As of Monday, the Seminole Tribe still had not reactivated the Hard Rock Sports Book app in Florida.
“The Tribe is obviously pleased with the decision and reviewing it to determine the next steps,” said Tribe spokesman Gary Bitner in a text statement.
Wallach said the Tribe may be waiting for some procedural steps in the courts before relaunching.
“As long as there are further appeals being filed, the mandate will not issue. And without an issued mandate the winning party can’t rely on the appellate decision,” said Wallach.
But he added the Tribe might move ahead anyways, as it stands to leave hundreds of millions, if not billions, of dollars on the table if it were to wait for the litigation to fully run its course.
“If you’re a bookmaker and you’re setting odds it’s a long shot bid for this result to be overturned. And knowing that, I could easily see the Seminole Tribe going with the odds here,” said Wallach.
Wallach said if he were a betting man, he’d wager the Tribe brings the app back online in time for the start of football season.
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