Posted on: October 26, 2023, 12:17h.
Last updated on: October 26, 2023, 12:17h.
The US Supreme Court has upheld the $2.5 billion gaming compact between Florida and the Seminole Tribe, paving the way for mobile sports betting in the state. However, legal challenges remain, casting uncertainty on the tribe’s ability to proceed with launching their sports betting platform.
The Seminole Tribe has been in a lengthy negotiation process with the State of Florida, resulting in the $2.5 billion gaming compact. This landmark deal extends the tribe’s gaming monopoly to include sports betting, roulette, and craps, activities that were previously illegal in Florida. It is projected to generate substantial revenue for the state over the next five years.
However, the compact has faced legal challenges, with one parimutuel operator, West Flagler Associates, arguing that it violates the constitutionality of the compact and the equal commerce clause. The case has made its way to the US Supreme Court, which recently denied a request to block the compact’s implementation. The court’s decision allows the Seminole Tribe to proceed with launching mobile sports betting in Florida.
Biggest Deal in America
The Seminole Tribe’s gaming compact with Florida represents the largest tribal casino revenue-share deal in America. It was made possible after the Supreme Court’s ruling on PASPA in 2018, which opened the door for states to legalize sports betting.
Valued at $2.5 billion, the compact extends the tribe’s gaming monopoly to sports betting, roulette, and craps, expanding their revenue opportunities significantly.
Following approval from the state legislature, the compact was sent to the US Interior Department’s Bureau of Indian Affairs for federal approval. The agency’s inaction for 45 days resulted in the compact being deemed approved under the Indian Gaming Regulatory Act. However, West Flagler Associates filed a lawsuit, claiming that the compact violated the requirement for tribal gaming to take place on tribal land.
Where Does a Bet Take Place?
The lawsuit brought up the question of where mobile betting transactions occur. The State of Florida argues that all mobile bets take place on tribal land since the Seminoles’ internet servers are located there. West Flagler Associates, on the other hand, challenges the interpretation and also claims that the monopoly granted to the tribe violates the equal commerce clause of the US constitution.
West Flagler Associates argues that the tribe’s monopoly goes against the principles of fair commerce.
The Federal District Court initially ruled in favor of West Flagler Associates, but an appellate panel overturned the decision, believing that the matter should ultimately be decided by the Florida Supreme Court.
Sovereign Government ‘Has No Race’
While the US Supreme Court did not provide reasons for rejecting the stay, Justice Brett M. Kavanaugh expressed concerns about equal protection issues in the case. The US solicitor general, Elizabeth B. Prelogar, countered that the compact is an agreement between two sovereign entities and does not raise race-based equal protection concerns.