Hard Rock Casino Hotel Fort Lauderdale, Florida,” Licensed Under CC BY-NC-ND 2.0
A gaming compact signed between the Seminole Tribe and Governor Ron DeSantis back in 2021 marked the official legalization of Florida sports betting. Since then, the market has taken many forms, ultimately turning into something few envisioned when it first launched.
The genesis of these twists and turns, as well as the perhaps unexpected end result? That would be an interpretation of the gaming compact that allows the Seminole Tribe to offer online sports betting services to anyone of legal age in the state.
This represents a stark departure from what many consider the rule of law. The Seminole Tribe is granted exclusivity over sports gambling in The Sunshine State. This includes the creation and use of a Florida sports betting app. However, the gaming compact stipulates that all transactions must take place on tribal property. Offering online sports betting in Florida requires a constitutional amendment. And the constitution can only be amended by voters’ approval of a ballot measure.
Florida’s sports betting gaming compact includes no such constitutional amendment. Case closed, right? Not so fast.
Early on in the process, the Seminole Tribe started allowing off-site bets to be placed with their Hard Rock Bet sports betting app. This, of course, drew the ire of many. Especially gaming operators in the region. So much so, in fact, that West Flagler Associates filed a lawsuit that initially ended up shuddering Florida sports betting operations altogether for over a year.
Yet, just a few years later, sports betting in The Sunshine is back up and running, and the Seminole Tribe sports betting app continues to accept off-site wagers. The reason why is not particularly complex or even off-putting. But it is divisive—and might go down as an all-time loophole.
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The Seminole Tribe Argues their Florida Sports Betting App is an Extension of Tribal Property
As the Seminole Tribe sees it, there is no issue with their sports betting app accepting off-site wagers. Because to them, their sports betting app is tribal property.
They argue that since servers running the app are located on tribal land, this makes the app itself an extension of tribal property. Such an interpretation has prompted many rebukes and overall opposition. It has also survived a rigorous litigation process.
That lawsuit filed by West Flagler Associates ran the gamut of legislative branches for years. At the end of it all, the Florida Supreme Court upheld the Seminole Tribe’s interpretation of the gaming compact. From there, West Flagler Associates attempted to have the case heard by the Supreme Court of the United States. While SCOTUS never offered a concrete verdict on the matter, they might as well have. On June 17, 2024, they officially declined to hear the case. In this particular instance, that is tantamount to rendering a decision on the matter. Declining to try the lawsuit freed up the Seminole Tribe to relaunch the Florida sports betting services that they continue to offer today.
Another Sports Betting Lawsuit in Florida is Now Pending
Of course, Florida sports betting has not continued to flourish, financially speaking, without further opposition. Protect the Constitution LLC, a limited liability company technically based out of Delaware, filed another lawsuit contesting the legality of Florida online sports betting. The Sunshine State is, in turn, seeking to dismiss the case on a number of grounds.
Two of them stand out above all else. First off, the motion to dismiss argues that the plaintiffs are citing a part of the constitution—Article X, Section 30—that applies to casino gambling. The state says sports betting is not covered under this language.
Furthermore, the filing also says that Protect the Constitution has no standing to bring this lawsuit, because as an out-of-state entity, it cannot claim to be adversely impacted by the interpretation of the Florida sports betting compact.
Some believe the LLC is filing this lawsuit on behalf of clients in The Sunshine State. That might be true. To this point, however, Protect the Constitution has not identified any. At the moment, it is not clear how this will play out. Various legal experts seem to think the state and the Seminole Tribe have the upper hand. As we saw last time around, though, anything can happen.
This Case will Set a Precedent that Impacts More Than Florida
If the lawsuit is successful, it will completely change the complexion of Florida sports betting operations. Services in that case will presumably be limited to wagering at brick-and-mortar sportsbooks run by the Seminole Tribe.
On the flip side, if the state and the Seminoles emerge victorious again, it will be the ultimate precedent. They will almost assuredly never have to defend the legality of their gaming compact and its interpretation again—at least not for a while.
What’s more, a ruling that goes in that direction could have a trickle-down effect on the rest of the country. Other states currently have gaming compacts similar to the one in Florida. All of them incorporate more than one tribe, which is a key difference. Theoretically, though, tribal nations covered under those gaming compacts could attempt to launch sports betting apps that provide widespread off-site services.
The Wisconsin sports betting market is the most commonly cited example. A handful of tribes have a gaming compact that permits them to offer sports betting on tribal property. But there is interest in expanding Wisconsin sports betting to include online wagers. Tribes will almost assuredly oppose the integration of commercial operators. If the manner in which Florida sports betting is offered holds up yet again, tribal nations in The Badger State could attempt to interpret their gaming compact in an identical context.
Granted, this will require alignment across multiple tribes. But Wisconsin isn’t Oklahoma or California. Both have dozens of tribal nations with a ton of influence. Wisconsin only has a handful. If they band together, they could have the power to broaden the scope of their operations. First, though, they and everyone else must wait and see what becomes of Florida sports betting…again.
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