Fight over Seminole Sports Betting Exclusivity Comes to an End

The Seminole Tribe of Florida has reached a settlement with a group of businesses over a prolonged dispute regarding exclusive rights to online sports betting in Florida. Announced on October 28, the agreement ends years of legal contention and shifts the focus toward a collaborative business model between the parties.

Gaming kiosks display the Hard Rock Bet applications in Florida. (Source: WFLA)

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This settlement concludes a lengthy battle over whether the Seminole Tribe should hold exclusive rights to online sports betting across the state. Businesses involved in the dispute, such as West Flagler Associates and Bonita-Fort Myers Corp., have agreed to stop pursuing litigation against the tribe's gaming operations. Instead, they will join forces with the Seminole Tribe to promote Jai Alai, a long-standing part of Florida's gaming industry, on the Hard Rock Bet app.

The legal struggle, which involved racetrack and poker room operators, saw numerous developments over the years, including a notable blow to the companies' case in June. At that time, the US Supreme Court declined to hear their appeal, which aimed to overturn the Seminole Tribe's exclusive right to online sports betting.

This decision further solidified the compact, established in 2021, granting the Seminole Tribe exclusive oversight of online sports betting in Florida. This compact, designed to generate substantial revenue for both the tribe and the state, is projected to bring in hundreds of millions of dollars annually.

Earlier this year, the companies had approached the Florida Supreme Court, asserting that the compact created a monopolistic environment in Florida's sports betting market. However, in March, the court dismissed their petition, ruling that the companies had used the incorrect legal procedure to challenge the agreement.

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The compact, which formalizes the Seminole Tribe's exclusive rights to online sports betting, was established between the tribe and Governor Ron DeSantis' administration. Despite facing scrutiny over perceived monopolistic implications, it remains legally valid in Florida's competitive gaming sector.

Objections to the compact also included questions about its compliance with federal laws. Opponents argued that it breached the Indian Gaming Regulatory Act (IGRA), which requires that gambling authorized under tribal compacts be conducted on tribal lands.

The central issue was whether bets placed online from anywhere within Florida could legally be considered to occur on tribal lands since only the servers were physically located there. Opponents contended that this agreement improperly extended the tribe's gaming rights off tribal land, and that Florida officials exceeded their authority in allowing online sports betting without specific legislative approval.

With their legal options narrowed, West Flagler Associates and Bonita-Fort Myers Corp. reassessed their approach, ultimately choosing to collaborate with the Seminole Tribe. Their partnership will add Jai Alai wagering, a sport with deep cultural roots in Florida, to the Hard Rock Bet app.

Since the Seminole Tribe's online sports betting platform launched in late 2023, it has shown strong revenue potential. State economists estimate that revenue sharing from tribal gaming could generate up to $4.4 billion by the end of the decade. By reaching this agreement, the parties involved avoid years of continued litigation and instead move forward together in expanding Florida's gaming market.

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