The U.S. Supreme Court has refused to take up a challenge to Florida’s online sports betting compact, effectively allowing the Seminole Tribe to continue its operations within the state.
The high court’s refusal to intervene leaves in place a lower court ruling that supports the compact, which has been a contentious issue since its inception in 2021.
The legal battle began when the Seminole Tribe of Florida and Governor Ron DeSantis entered into a compact in 2021 that allowed the tribe to offer online sports betting statewide. This compact was projected to generate significant revenue for both the tribe and the state, with estimates suggesting it could bring in billions over the agreement’s 30-year term. However, the deal faced immediate legal challenges from pari-mutuel operators who argued it violated federal law by permitting betting off tribal lands.
In November 2021, U.S. District Judge Dabney Friedrich initially ruled against the compact, arguing it breached the Indian Gaming Regulatory Act (IGRA) by allowing wagers to be placed from non-tribal lands.
However, this decision was overturned by a three-judge panel of the D.C. Circuit Court in June 2023, which reinstated the compact. The panel found that IGRA does not prohibit such agreements and that the legality of bets placed off tribal lands should be determined by state law.
Supreme Court’s Decision
The latest development saw West Flagler Associates and Bonita-Fort Myers Corporation, the plaintiffs in the case, petition the Supreme Court to reconsider the D.C. Circuit’s ruling. They contended that without intervention, the ruling would lead to widespread unauthorized sports betting in violation of both state and federal laws. Despite these arguments, the Supreme Court denied the request to put the D.C. Circuit’s ruling on hold, effectively allowing the compact to remain in effect.
U.S. Solicitor General Elizabeth Prelogar, representing the Department of the Interior, defended the compact, stating that it only authorized gambling on tribal lands and did not extend to non-tribal areas, as acknowledged by the plaintiffs themselves in state filings.
The refusal of the Supreme Court to hear the challenge now means that Florida sports betting can continue with bets processed through servers located on tribal lands, a system described as a “hub and spoke” model.
A spokesperson for the Seminole Tribe said following the decision:
“The Seminole Tribe of Florida applauds today’s decision by the U.S. Supreme Court to decline consideration of the case involving the Tribe’s Gaming Compact with the State of Florida.
It means members of the Seminole Tribe and all Floridians can count on a bright future made possible by the Compact.”
An experienced iGaming commentator and analyst based in New York City – Jenny reports on regulation and gambling industry news and events.
The Supreme Court recently made a decision not to hear a challenge to Florida’s Seminole sports betting compact, which has significant implications for the state’s gambling industry. The compact, which was signed by Governor Ron DeSantis and the Seminole Tribe of Florida earlier this year, allows the tribe to operate sports betting on tribal lands.
The challenge to the compact was brought by a group of pari-mutuel operators who argued that the compact violated the state constitution by giving the Seminole Tribe exclusive rights to offer sports betting in Florida. However, the Supreme Court’s decision not to hear the case effectively upholds the compact and allows the tribe to move forward with its plans to offer sports betting.
The compact is expected to bring in significant revenue for both the Seminole Tribe and the state of Florida. Under the terms of the agreement, the tribe will pay the state a minimum of $2.5 billion over the next five years in exchange for exclusive rights to offer sports betting. This revenue will help fund education and other important programs in the state.
In addition to sports betting, the compact also allows the Seminole Tribe to expand its casino operations by offering new games such as craps and roulette. This expansion is expected to attract more visitors to the tribe’s casinos and boost tourism in the state.
Overall, the Supreme Court’s decision not to hear the challenge to Florida’s Seminole sports betting compact is a win for both the tribe and the state. It will bring in much-needed revenue and create new opportunities for economic growth in Florida’s gambling industry.
