US Federal lawyers are fighting to get the invalidated Florida-Seminole gaming compact back in play. The tribal-state gaming expansion deal was inked in August last year but has since faced legal backlash.
The Federal Government has appealed a decision by federal judge Dabney Friedrich to nullify the amended Florida-Seminole compact, which would have granted the tribe a statewide sports betting monopoly. Floridians got a taste of mobile sports betting for about three weeks, right before the compact was invalidated in November 2021. It has been over a year since the agreement was deemed to violate IGRA as it attempted to authorize sports betting outside of tribal lands.
Last Wednesday, a three-judge panel heard arguments presented by officials and legal representatives, urging the court to reverse the earlier ruling. In the hearing, there was representation from the federal government of the State of Florida, the US Department of Interior, the Seminole Tribe, and West Flagler Associates (the plaintiffs).
The Hub & Spoke Model: A Monopolizing Agreement
As the panel deliberates on the arguments tabled last Wednesday, one central point of focus remains. It is the question of whether the Secretary of Interior Deb Haaland acted within her mandate to allow the government and tribe to arrive at the agreement.
Signed in August 2021, the compact came into effect by default after Haaland chose not to act during the 45-day review window. It is a 30-year deal that, if reinstated, would require the Seminoles tribal operator to pay the Sunshine State at least $2.5 billion in the first five years of sports betting operations. Additionally, the Seminoles tribal nation would pay $6 billion to Florida, guaranteeing that the tribe would have complete control over all sports betting activities in the state. The Seminoles would also be allowed to add craps and roulette to their casino services.
Among those who spoke during the two-hour hearing was DOI Attorney Rachel Heron. She argued that Secretary Haaland acted lawfully and that the original ruling was made following a misinterpretation of federal contract law. Heron added that it was not within Haaland’s authority to ensure that the compact complied with state law; therefore, she did not have a reason to disprove the deal.
Arguing for the Seminole tribe, lawyer Barry Richard made a point to clarify the stance of the IGRA. He stated that it was not meant to restrict gambling to only Indian lands but to prevent the states from regulating gambling activities taking place on tribal lands. Richard said.
Quote“IGRA was intended to encourage the states and the tribes to enter into agreements precisely like this one.”
Hamish Hume, a lawyer representing Florida pari-mutuel operators, including West Flagler, explained that the compact was a ‘brazen recharacterization of the actual facts.’ By attempting to allow gambling on and off tribal land, the federal government and the Seminoles were trying to have it both ways. And in case the court was to reverse the ruling of the lower court, Hume requested the court to spell it out that:
Quote“the order says this secretary’s approval does not in any way authorize the gambling if it takes place off Indian land.”
Hume further argued that:
Quote“IGRA has only one approval provision. The secretary may approve compacts that allow for [gambling], but there is not a capital A ‘Authorize’ on Indian lands and then a ‘wink-wink nudge’ that it’s also legal off Indian lands. The express part of this (the compact) is that this makes betting legal off Indian lands.”
A Landmark Case for the Sunshine State
Meanwhile, as the Appeals Court continues to deliberate on the West Flagler Associates vs. Secretary Deb Haaland case, there is no doubt that the outcome will be a pivotal moment in Florida sports betting history. The DOI has proved persistent in supporting the gambling compact, and in case of an unfavorable verdict, it would likely proceed with another appeal.
Similarly, the Seminoles have also been optimistic about an imminent victory, as is evident by the Hard Rock Digital App that was launched in the midst of court proceedings last year. From the judge bench’s line of questioning, Judge Wilkins may be leaning towards reversing the lower court’s ruling, while Judge Henderson may be considering voting for the decision to uphold. Judge Childs may be the tie-breaker as she did not indicate a leaning towards any of the sides.
Sports Betting Via Voter Initiative?
For some, voter approval is vital in ensuring everyone has a fair say in how things will run in the gambling industry. This is why opponents of the Florida-Seminole gaming compact have proposed a more democratic approach by letting Floridians decide what’s best for them.
A ballot initiative aimed at getting voters to legalize sports betting in the state was called off earlier this year after failing to gather the required 891,589 signatures in time. Some of the challenges cited by proponents of the bill included a surge in the Covid-19 infection rate, which made it difficult to collect in-person signatures. Nonetheless, a similar initiative may be launched in time for the 2024 Elections.
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