Florida receives federal clearance on controversial tribal gaming compact
US Department of the Interior concludes 45-day review of legislation between Seminole Tribe and Sunshine State to approve deal despite high-profile lawsuit
Legislators in Florida have hailed a “great day” for the Sunshine State as the US Department of the Interior (DOI) gave its final approval to the new gaming compact with the Seminole Tribe of Florida.
The review took 45 days to complete and saw the DOI assess its compatibility with the Indian Gaming Regulatory Act, which serves as the umbrella piece of legislation for all tribal gaming in the US.
Governor Ron DeSantis highlighted the sign-off as a “big deal” for Florida and something that would create more than 2,200 jobs for Floridans.
“This mutually-beneficial agreement will grow our economy, expand tourism and recreation and provide billions in new revenue to benefit Floridians,” DeSantis said.
“I again want to thank Seminole Tribe of Florida Chairman Marcellus Osceola Jr., Senate President Wilton Simpson and House Speaker Chris Sprowls for their part in getting this done for our great state,” he added.
The compact, first announced in April, was ratified by the Florida legislature during a special legislative session in May.
It increases projected contributions made by the Seminole Tribe to as much as $6bn over the next 10 years, with a guaranteed minimum of $2.5bn during the first five years.
Crucially, the new compact allows sports betting in Florida exclusively through the Seminole Tribe.
Under the compact, competing operators can enter the state’s sports betting market but must operate as skins under technology provided by Seminole gaming partner Hard Rock Digital.
Any operator using the Seminole platform is required to pay 40% of its revenue to the tribe – a potential deterrent for prospective operators.
Transactions would go through servers located on tribal land in a so-called “hub and spoke” model, something which bypasses both federal and state law, which both deem sports betting in Florida illegal.
Last month, the compact was the target of a lawsuit lodged by gambling operators calling for the repeal of the act on the grounds it breached the Indian Gaming Regulatory Act (IGRA).
The lawsuit also suggested the compact violates 2006’s UIGEA in allowing bets to be placed outside of tribal lands and the 1961 Wire Act.
These operators argue they will lose out due to the competitive advantage given to the Seminole Tribe under the compact, which they state will impair their ability to compete.
The potential continuance of this lawsuit has now been put in jeopardy by the DOI approval.
However, the Seminole Tribe is also facing potential competition from a new constitutional initiative spearheaded by Florida-based not-for-profit political action committee (PAC) Florida Education Champions (FEC).
The PAC, which is backed by DraftKings and FanDuel, would see the authorization of online sports betting at all Florida pari-mutuels, professional sports stadiums, and anywhere else in the state using a mobile sports betting platform.
The ballot initiative, which would be voted on in November 2022, would require a 60% vote to pass.