Officials of the Seminole Tribe of Florida said they’re preparing to launch sports betting, craps and roulette by October or November. The tribe has exclusive rights to offer these gaming options at their venues thanks to the gaming compact negotiated by Florida Governor Ron DeSantis and the tribe in April 2021. The compact was approved with bipartisan support in the state legislature and by the U.S. Department of the Interior on August 5.
The new 30-year compact requires the Seminole Tribe to pay the state of Florida at least $2.5 billion over a 5-year period, or about $500 million a year. Starting in the sixth year, the tribe will pay the state a percentage of a portion of its gaming revenue.
Compact supporter state Rep. Randy Fine said, “We can spend the money to improve education. We can spend it to improve roads, fix healthcare. We can spend it to cut taxes. This is $500 million, largely for activity that was going on Wittenberg these Seminole reservations that we can use to improve Florida. I think to get $500 million, most of which will be paid on activities that were already taking place, I think is a pretty good deal for the state.”
Not everyone agrees, including state Rep. Dan Daley. Although he voted for the compact, he said, “I just want to make sure it was the best deal possible and it wasn’t just politics. It wasn’t just putting another win in the governor’s column. I think it was a good deal for Florida. Do I think it was the best deal we could have gotten? Probably not I think you probably could have gotten some more money.”
Compact critics have stated the money the state will receive is too low when compared to what other states take in from sports betting.
Then there is the issue of lawsuits that have been filed against the compact. A lawsuit filed August 16 by parimutuels against U.S. Interior Secretary Deb Haaland argues, in part, that the new compact violates the federal Indian Gaming Regulatory Act by allowing the Seminoles to conduct gambling, in particular mobile sports betting, off tribal lands. IGRA requires all gaming to take place on Indian land, but under the new compact, wagers may be placed anywhere in Florida on cellphones or at sportsbooks, but they’re all processed through servers on the Seminole reservation.
Now the Seminole Tribe has filed documents in U.S. District Court in Washington, D.C., to side with Haaland in that lawsuit, which was brought by parimutuels Magic City Casino and Bonita Springs Poker Room, both affiliated with West Flagler Associates. The tribe argued as a federally designated tribe and a sovereign nation, it is an “indispensable party and is barred from participating to defend its interests; therefore, it argues, the case must be dismissed.
Magic City Casino and Bonita Springs Poker Room also filed a case in U.S. District Court in Tallahassee on July 2 against Governor Ron DeSantis and Department of Business and Professional Regulation Secretary Julie Imanuel Brown. That case requested an injunction to prevent DeSantis and Brown from implementing gambling laws adopted in May that allow the tribe alone to determine which, if any, parimutuels it will partner with potential sport- betting operations off tribal lands.
Assistant Secretary of the Interior for Indian Affairs Bryan Newland did not actually approve the compact but allowed it to take effect by default at the end of the 45-day review period. Newland wrote although he let the compact move forward, he had “concerns” about key provisions of the compact, which most likely will come up in future court challenges.
In addition, critics said the compact violates the Florida constitution, since voters approved a ballot measure in 2018 that requires voters have the final say on any expansion of gambling, not lawmakers.
Another challenge may be coming from DraftKings and FanDuel which are spending millions of dollars to put a referendum on a future ballot that would allow other entities besides the Seminole Tribe to offer sports betting. A Seminole Tribe spokesperson said the tribe will fight that initiative which was described as out-of-state companies trying to manipulate Florida voters.
Complete Seminole control of sports betting “certainly can’t be what’s best for the consumer and it can’t be what’s best for competition. The governor essentially gifted a monopoly to one entity,” Gaming Attorney Daniel Wallach stated. However, he noted Colorado and New Jersey allow sports wagers to be made anywhere but require they be processed in a single location.
However, the Seminole spokesperson said, despite the lawsuits and other issues, tribal leaders are happy with the stability the new compact brings for both the Seminoles and the state of Florida. The spokesperson added the compact also allows the Seminoles to give back to the state through much more than sports betting.
