The state of Florida, one of the big fish still without a legal sports betting platform took their name off the “outlier list” on Wednesday and officially took the next step toward full legalization of sports wagering.
It was in a special session of the Florida House and Senate that approval came down for a 30-year gaming Compact with the Seminole Tribe. The House was the final hurdle passing it by a 97-17 vote Wednesday after the Senate passed it 38-1 Tuesday. Along with the announcement of a deal with the Seminoles came the rollout of a host of bills that will govern the new industry for the Sunshine State.
Florida becomes the biggest state in terms of population to welcome a legal sports betting platform so far. Florida ranks third in terms of population in the US with 21.5 million residents and boasts major, iconic franchises in every major North American league.
Boon for the Seminole Tribe
The Seminole Tribe is just one of the big winners in the Florida move to bring about a legal sports betting platform. They get exclusive control over sports betting in the state. Pari-mutuel operators, with which there are 35 currently operating in Florida will be allowed to run mobile betting platforms with a percentage of their profits going to the Tribe. Servers for those mobile operators will have to be situated on Tribal lands.
In other words, the Seminole Tribe would maintain and even grow a virtual monopoly on the legal sports betting scene in Florida once the ink dries on the renegotiated deal.
Seminole Chairman Marcellus Osceola Jr. said of the deal: “Today, all the people of Florida are winners, thanks to legislative approval of the Gaming Compact between the State of Florida and the Seminole Tribe of Florida. It is a historic and mutually-beneficial partnership between the State and Seminole Tribe that will positively impact all Floridians for decades to come.”
Hiccups Ahead?
With the signing of the new Tribal Compacts comes the realization that there will be some lawsuits surrounding various aspects of the deal coming down the pike. The U.S. Department of the Interior will also get to weigh in on the viability and legality of the new Compact before all is said and done.
Rep. Sam Garrison acknowledged the possibility of legal challenges when he said: “It doesn’t take a master’s degree to know that there will be litigation.”
Speaker of the House Chris Sprowls also weighed in saying: “I don’t think there’s any chance of doing a gaming deal to the size and scope that was negotiated by Gov. DeSantis without a legal challenge. You are navigating the icebergs of legal hurdles as you do this.”
Issues Surrounding the Process
Some have pointed to a rushed process to pass legal sports betting legislation in Florida. “I will not say that if we ratify this compact the sky will fall, but there are some obvious issues with how we came to
this compact and how it came to this body to be considered,” Rep. Omari Hardy said. “I don’t know why we have to rush. Given the detail and that very few of us are experts … I think it takes a little more time than a few days in a special session. I think we could spend a little more time on this. I think we could get a little bit better deal on this, and this deal feels like we came to this deal rushed. …The compact that we are going to ratify is not the compact that will take effect.”
The legal questions that could be pursued by opponents of legal sports betting in Florida include whether or not mobile betting anywhere in the state is technically on tribal lands, even if their servers are located there. Detractors can argue that Tribal land doesn’t include the entire state, so mobile betting would be operating beyond its bounds.
Then there is the question about whether or not voters in the state of Florida should have a say at the ballot box about the viability and desire to bring legal sports betting to their state. It could lead to a delay of sports betting launch and a question on the 2022 election ballot.
Next Steps
It will still take some time and some legislative and legal wrangling before legal sports betting in a full-go in Florida. It is expected to take until at least October 15 before all of the “I’s” are dotted and the “T’s” crossed. In this case, Florida bettors won’t be able to place legal bets on the bread-and-butter NFL until well into the season.
But before that time, not only will the U.S. Department of the Interior have their say on the renegotiated Tribal compact, but the independent federal National Indian Gaming Commission (NIGC) will also have to weigh in on the idea.
So…
While on the surface the Florida legal sports betting scene looks like it has a clear path toward launch, in actuality there are a ton of hurdles for proponents of a platform. DFS has already been axed, despite the two provider giants lobbying hard for Fantasy Sports in the state.
Legal hurdles, combined with the lack of a concrete plan for Florida legal sports betting still lingers despite the legislative action that took part this past week. But the smart money appears to be on legal sports wagering becoming a reality in Florida sooner rather than later. Expect a fight on numerous fronts to come first.
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