The Seminole Tribe started offering Florida online sports betting more than a year ago, but a lawsuit filed on Wednesday claims voter approval is needed.
Protect the Constitution LLC filed the lawsuit on Wednesday in Leon County Circuit Court. The group alleges that a 2018 constitutional amendment requires voter approval for changes in gambling rules.
“Today, online sports betting occurs throughout the state of Florida,” the lawsuit said. “But no citizens’ initiative has ever been held to provide authorization. And the people of Florida have never been allowed to exercise their constitutional right to decide whether sports betting should be authorized throughout the state.
Florida online sports betting
Gov. Ron DeSantis made a deal in 2021 to allow the Seminole Tribe to offer online sports betting across the state. As part of the compact, the Seminole Tribe agreed to pay $2.5 billion over five years to the state.
The legality of the deal depends on the interpretation of where bets are placed. With servers on tribal lands, bettors are effectively deemed to be gambling on tribal lands as well.
The Indian Gaming Regulation Act (IGRA) allows gambling on tribal lands under federal oversight.
Hard Rock Bet, the Seminole Tribe’s online sportsbook, therefore has exclusive rights to Florida online sports betting. The site had been offering online gambling before the deal in 2021 but had to take down its app. The app went live again in 2023 following the 2021 compact.
Unregulated online betting
Just as online bettors can bet on tribal lands through the servers, offshore sportsbooks allow bettors to place wagers in freer markets, such as Curacao or Malta. Users can access sites through VPNs, making their devices appear as if they are in other countries to avoid local gambling laws.
With Florida online sports betting limited to the Seminole Tribe, many residents use alternative sites to gamble.
Last year, legal online sports betting in the state generated $880 million in revenue. Unregulated online sports betting was not far behind at $634 million, although that figure is likely to be higher due to the difficulty in tracking some of the sites.
Lawmakers have been trying to clamp down on unregulated gambling. Former Philadelphia Eagle, Sen. Corey Simon commented, “Illegal gambling in Florida is a growing crisis. Illegal gambling operations are spreading across Florida, exploiting weak penalties to operate with little fear of consequences.”
Last month, a Senate committee voted in favor of Simon’s bill proposing harsher penalties for unregulated sportsbooks.
Impact of the lawsuit
A previous challenge to the Seminole Tribe’s exclusive right to offer Florida online sports betting was dismissed by the Florida Supreme Court last year. The court rejected that complaint on procedural grounds. This case could be more impactful as it is filed through a standard declaratory judgment process.
If voters are given a say, it is likely they would approve legal online betting. In a 2022 poll, only 28% of Florida residents said they oppose legalization. A vote might open the door for other sites such as DraftKings and FanDuel to operate in the state.
This would therefore be a risk to the Seminole Tribe’s current deal. After signing the agreement, DeSantis would likely be reluctant to give voters the choice of opening the market.
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