The U.S. Supreme Court has declined to hear a challenge against an agreement granting the Seminole Tribe exclusive rights to manage online sports betting in Florida.
CBS News reported that this move removes a substantial legal hurdle, cementing the compact's standing and ensuring significant revenues for both the Tribe and the state.
The controversy began when West Flagler Associates and Bonita-Fort Myers Corp., both operators of racetracks and poker rooms in Florida, filed a petition against the compact. In March, the Florida Supreme Court determined that these companies had filed the incorrect type of petition. This ruling left the U.S. Supreme Court as their next venue for challenging the compact.
The agreement, established in 2021 between the Seminole Tribe and Governor Ron DeSantis' administration, has been a subject of contention. Opponents argue that it creates a monopoly for the Tribe and contravenes the Indian Gaming Regulatory Act.
The plaintiffs assert that online sports wagers placed anywhere in the state do not fulfill the Act's requirement that gambling should occur on tribal lands. They also contend that Governor DeSantis and the Florida Legislature exceeded their authority by approving the compact.
Another point of contention is the 2018 Florida Constitution amendment requiring a citizens' initiative to expand casino gambling outside tribal land. Critics argue that the compact skirts around this constitutional requirement.
The Seminole Tribe, however, holds that the Legislature has the legal authority to sanction online gambling and that the 2018 amendment does not alter this power. Lawyers representing DeSantis and legislative leaders argue that sports betting differs from casino gambling and isn't restricted by the amendment.
Despite legal challenges, the Seminole Tribe initiated its online sports betting operations late last year. Projected revenue figures have been substantial since the launch.
For 2024 alone, Florida's share of revenues from the agreement exceeds $120 million. Projections suggest $4.4 billion in revenue-sharing through the decade's end.
Daniel Wallach, a prominent expert in gaming law, commented on the Supreme Court's decision: “What’s important with today’s announcement is that the most significant barrier to online sports betting in Florida has been removed.”
Wallach also emphasized the broader implications: “Tribes in other states stand to benefit from this decision, because now they have a clear roadmap that has cleared judicial review.” He anticipates increased efforts in other states to pursue similar online gambling operations.
The decision by the Supreme Court could indeed serve as a precedent for other tribal entities across the United States. The legal endorsement of the compact sets a significant example, potentially transforming the landscape of online sports betting nationwide.
The U.S. Supreme Court's refusal to take up the challenge solidifies the 2021 compact between the Seminole Tribe and the state of Florida.
Despite opposition alleging that the compact violates federal laws and state constitutional amendments, this decision paves the way for substantial economic benefits through online sports betting operations. With Florida's projected revenue hitting the billions, this decision may also influence similar strategies and legal pursuits across various states.
