Real Seminole Sports Betting Issue Rises to the Surface

The Seminole Tribe in Florida has officially started taking sports bets. They were authorized to proceed effective October 15, 2021, based on a new compact agreement between Tribe officials and Florida Governor Ron DeSantis. That agreement was approved by the Florida Congress in May of 2021. That same compact was later authorized by the non-actions of the Department of the Interior. The fallout from the compact that essentially gives the Seminoles exclusive rights to offer sports gambling throughout the state is reaching a fever pitch.

Over the last few months, several interested parties have filed federal lawsuits to demand the state to open up the sports betting industry to other interests. The lawsuits have been filed by parties such as the Magic City Casino in Miami-Dade County and Bonita Springs Poker Room, claiming the Tribe's exclusive rights will harm their businesses. It's also notable that top U.S. online bookmakers Fanduel and DraftKings are helping to similar lawsuits.

To be clear, the real issue has nothing to do with the Seminole Tribe taking sports bets through its Hard Rock Casino property. At issue is the intention of the Tribe to offer online sports betting where sports bets would be placed from areas that are not on Indian land. This would presumably be a violation of the Indian Gaming Regulatory Act.

According to Department of the Interior attorneys, the new compact would allow the Seminoles to take internet bets, but it would be something that has been theoretically approved by the State Congress. The reality is there is nothing that could be placed in the new compact that could authorize such activities, as was rightfully pointed out by department attorneys.

The entire issue of the Seminoles having exclusive rights to accept sports bets in the state turns on their ability to accept online wagers. The Tribe has argued that the computer servers would be placed on Indian land. Opponents have countered that the location of the servers has nothing to do with where the bets are being placed.

There is a lot at stake here. Florida has a robust population filled with people of means and a desire to gamble. The expected revenue from sports gambling is so high that the Seminole Tribe has agreed to pay the state $2.5 billion minimum over the next five years for these exclusive rights. Also, the Tribe was able to get DeSantis to agree that the Tribe's retail casino operations could add craps and roulette as gaming options.

None of this sits well with other gambling interests that just want to fairly compete for their piece of the sports betting pie. There is an ongoing attempt by gambling interests to gather enough signatures for a 2022 ballot initiative that would put the decision to open the sports betting door in the hands of the voters. As one could imagine, the Seminoles are doing everything they can to dissuade potential voters from siding with these other gambling interests.

Clearly, this issue is headed for a courtroom where a fierce battle will ensue.