On August 6, Bryan Newland, principal assistant secretary of the U.S. Department of Interior for Indian Affairs, approved the gaming compact negotiated by Florida Governor Ron DeSantis and the Seminole Tribe of Florida. The compact represents what could be the largest gambling expansion in Florida in decades.
In a letter to DeSantis and Seminole Tribe chairman Marcellus Osceola Jr., Newland wrote, “After thorough review under the Indian Gaming Regulatory Act, we have taken no action to approve or disapprove the compact before August 5, 2021, the 45th day. As a result, the compact is considered to have been approved by operation of law to the extent that it complies with IGRA and existing federal law. The compact will become effective upon the publication of noticed in the Federal Register.”
In a statement, DeSantis said, “The final approval of this historic gaming compact is a big deal for the state of Florida. This mutually-beneficial agreement will grow our economy, expand tourism and recreation and provide billions in new revenue to benefit Floridians. I again want to thank Seminole Tribe of Florida Chairman Marcellus Osceola Jr., Senate President Wilton Simpson and House Speaker Chris Sprowls for their part in getting this done for our great state.”
Osceola commented, “Today is a great day for the people of Florida, who will benefit not only from a $2.5 billion revenue sharing guarantee over five years, but also from statewide sports betting and new casino games that will roll out this fall and mean more jobs for Floridians and more money invested in this state.”
Under the compact, the Seminoles will serve as the state’s hub for sports betting, with parimutuel operators, such as horse racetracks, jai alai frontons and former dog racetracks, contracting with the tribe; the tribe must contract with at least three parimutuels within three months after sports betting launches, which cannot happen until October 15. Floridians and visitors anywhere in the state can place sports bets using cellphone apps; the Seminoles would host the sports wagering through computer servers on tribal lands.
This provision is the first of its type in the U.S. Gambling experts see it as a major test of IGRA, which was enacted prior to online gambling. Newland wrote, “While the federal law did not contemplate such activities as sports betting or fantasy sports, evolving technology should not be an impediment to tribes participating in the gaming industry. The pursuit of mobile gaming is in line with the public policy considerations of IGRA to promote tribal economic development, self-sufficiency, and strong tribal governments.”
Newland added, “The Department will not read restrictions into IGRA that do not exist. Accordingly, provided that a player is not physically located on another tribe’s Indian lands, a tribe should have the opportunity to engage in this type of gaming pursuant to a tribal-state gaming compact.”
The compact also allows the Seminoles’ seven casinos to offer roulette and craps. Daily fantasy sports also will be legalized. New casinos can be built and opened, both on and off tribal lands, and other casinos can be expanded or moved. In exchange, the Seminole Tribe will pay the state $2.5 billion over the first five years.
John Sowinski, president of the anti-gambling expansion organization No Casinos, said the group plans to sue to block the compact. The group was behind the 2018 Florida constitutional amendment, Amendment 3, passed by 72 percent of voters, requiring voter approval of gambling expansion in the state. Amendment 3 supporters claim sports betting that takes place off tribal lands requires voter authorization. But the compact’s supporters contend that sports betting would not require a referendum because the computer servers that handle sports wagers are located on tribal property.
Sowinski said the compact “violates multiple federal laws as well as the Florida Constitution. Only Florida voters, not politicians in Tallahassee or Washington, have the power to expand gambling in Florida. This issue will have its day in both state and federal courts, where we are confident that this compact will be overturned. We are committed to ensuring that the people of Florida will always have the final say on gambling as required by Florida’s Amendment 3.”
The new agreement replaces a 2010 compact that gave the Seminoles the exclusive rights to operate banked card games, such as blackjack. But in 2019, the tribe stopped paying the state $350 million annually for those exclusive rights because it said the state violated the compact by allowing parimutuels to offer designated card games. A federal judge agreed with the tribe.
