Florida Sports Betting Row Set to Continue
The Florida sports betting row is set to drag on after the Seminole Tribe confirms their intention to appeal a US Federal Judge’s decision to annul a 30-year compact. Florida’s governor De Santis is considering a legal intervention in the matter.
Florida Sports Betting Row Continues © Pixabay.
The legal disputes over online sports betting in Florida are set to continue after the Seminole Tribe confirmed that they intend to dispute a court decision to nullify its 30-year tribal compact.
Earlier this week, US District Court Judge Dabney Friedrich ruled an agreement between the Sunshine State and the Seminole Tribe, agreed in August, violated the Indian Gaming Regulatory Act (IGRA).
The case was instigated after two Florida land-based operators challenged the compacts legality and asked the court to judge whether the 30-year agreement, which was only agreed upon three months ago, violated laws. Namely, the Indian Gaming Regulatory Act, the Wire Act, and the Unlawful Internet Gambling Enforcement Act (UIEGA).
In her verdict, Dabney Friedrich stated there was a “substantial probability” that allowing the compact to stand would cause the plaintiffs to suffer competitive injury under US law.
In her summing up on Monday, Friedrich wrote:
“On the merits, it is well-settled that IGRA authorises sports betting only on Indian lands,” “This requirement stems from IGRA, which authorises the Secretary to approve compacts “governing gaming on Indian lands.
“Indeed, if there were any doubt on the issue, the Supreme Court has emphasised that ‘everything—literally everything—in IGRA affords tools . . . to regulate gaming on Indian lands, and nowhere else.”
“It is equally clear that the Secretary must reject compacts that violate IGRA’s terms.”
The news of the ruling came as a severe blow to the state, which is set to be impacted financially by the decision. A spokesperson for Ron DeSantis, the Florida governor, all but admitted that Florida was considering an appeal over Friedrich’s ruling.
“We are reviewing the court’s perplexing ruling, which certainly contains appealable issues,” Christina Pushaw said.
“Because neither the Seminole Tribe nor the state of Florida are parties to the case, it is unclear what, if any, immediate impact the ruling has in Florida. We look forward to working with the tribe to ensure the future success of the compact,” the Ron DeSantis spokesperson added.
Hard Rock Digital’s Florida-based online sportsbook, a subsidiary of the Seminole Tribe, has been in operation for the last three weeks. At the time of writing, it is still taking sports betting bets from Floridians, despite Monday’s ruling, which effectively declared their operation illegal.
The Seminole Tribe has already launched its own appeal, and tribal council chairman Marcellus Osceola Jr has already filed an affidavit with the court that the tribe has already committed “considerable resources” to set up their Florida sportsbook operations.
The tribe has taken on 65 additional staff at the Hard Rock Digital business and claims they have signed contracts with at least 50 external companies and external entities at the cost of over $25m.
Osceola Jr wrote: “The Tribe’s online sports betting authorized by the compact is now in operation and is generating millions in revenue per week,”
“The Tribe is using these funds to pay back the development costs for its online sportsbook, make revenue sharing payments to the state and fund important tribal programs.
“The Tribe would be irreparably injured if it is required to cease online sports betting pending the outcome of an appeal.
“The Tribe would immediately lose the millions in online sports betting revenues the Tribe is generating. As a result, many of these jobs and outsourced position would be lost.
“In addition, if the Tribe is not permitted to operate under the 2021 Compact during an appeal, then the State would lose tens of millions per month in revenue sharing payments from the Tribe,” Osceola added.
On Monday, Friedrich did give hope to the Seminole Tribe, offering her advice that a “citizens initiative” to allow Florida sports betting could be included in the state’s 2022 ballot.
This ballot is due to take place in November next year.
