SCOTUS Upholds the 2021 Florida Gambling Compact With Seminoles

The Seminole Tribe of Florida is known for championing tribal gaming rights. And after a three-year struggle, the community seems to have secured a significant victory. The Supreme Court of the US (SCOTUS) dismissed the case against the 2021 approval of Florida’s new Class III tribal gaming compact with the Seminole Tribe and the Department of the Interior.

Plaintiffs, the Bonita-Fort Myers Corporation and West Flagler Associates, argued that this compact breached the Indian Gaming Regulatory Act (IGRA). They based the argument on the fact that the compact allows the Tribe to accept online sports bets remotely from anywhere in Florida. This latest win centers on the Tribe’s ability to offer mobile sports betting across the entire State of Florida through servers on Indian land. A statement by the Seminole tribal nation read:

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“The Seminole Tribe of Florida applauds today’s decision by the US Supreme Court to decline consideration of the case involving the Tribe’s Gaming Compact with the State of Florida.”

The Seminole Tribe, however, wasn’t a defendant in the lawsuit. Department of the Interior attorneys argued that since the online sports bets are processed by servers located on tribal land, the compact does not break IGRA. Ultimately, the Florida-Seminole gaming compact could provide tribes in other states, such as New Mexico, California, and Arizona, with new possibilities as they work towards updating and expanding their gaming industries.

The History of Florida’s Gaming Compact

Conflicts with the Seminole Tribal Nation have often marked the history of gambling in Florida. This situation has affected gaming within the Sunshine State and nationally. For example, Florida legalized bingo halls in 1971. But the State imposed strict limits, such as a $100 maximum pot per night and limiting charitable games to twice every week.

Eight years later, the Seminole Tribe unveiled a bingo hall where they played high-stakes games that didn’t follow the State’s rules. This establishment ran six days a week and rewarded players ten times higher than the state standard. The hall became very popular. However, Robert Butterworth, Broward County Sheriff, believed the Tribe ran an illegal bingo in Hollywood, Florida. This disagreement led to a major 1981 court case, Butterworth v. Seminole Indian Tribe. The lawsuit sought to decide if Florida could regulate high-stakes games on Indian territories.

Butterworth quoted Public Law 83-280 that Congress passed in 1953 to transfer federal control over certain criminal and civil cases in Indian Country to states. He argued that the law allowed Florida to shut down the Tribe’s bingo. But the 5th Circuit Court of Appeals ruled that because the State (Florida) didn’t ban bingo, Butterworth’s role was about regulating, not criminalizing, the games.

A Glance Into the Case

The US Supreme Court decided not to hear the case West Flagler Associates v. Haaland on Monday, June 17, 2024. This means the appellate court’s decision supporting the approval of the Seminole Tribe’s gaming compact with the State of Florida will stand. The Seminole Tribe agreed with the State to offer mobile sports betting throughout Florida in 2021. This contract considered bets placed anywhere in the State to be made at the location of servers on Seminole lands.

But in November 2021, a United States District Court had overturned this compact. The ruling was that statewide mobile wagering was not allowed under the IGRA Act. DC’s Court of Appeals reversed the district court’s decision and confirmed the legality of the Seminole compact In June 2023. It ruled that the compact only permitted activities happening on Seminole land and referred to activities allowed by state law on state land. The court reasoned that these were all acceptable negotiation subjects because they were connected to gaming operations under the IGRA Act.

The case was brought to the Supreme Court, and Chief Justice John Roberts agreed to a motion to stay. But after a poll, all the judges voted against the hold except Justice Brett Kavanaugh. This decision allowed the mobile sports betting parts of the Seminole Compact to take effect temporarily. Florida courts addressed other legal issues at the same time. The Supreme Court’s decision not to hear West Flagler’s appeal has left the June 2023 DC Circuit Court resolution in place. This means the ruling that supports the Seminole Compact will stand.

Gaming Compacts and Internet Gaming

The new rule’s most significant part is Section 293.26:

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“May a compact or amendment include provisions addressing statewide remote wagering or internet gaming?”

So, Following the Department of the Interior’s (DOI) past views and the West Flagler decision, the DOI’s response is an absolute “yes.”

The rule explains that online betting is one of the ‘other topics closely tied to’ gaming, which IGRA authorizes tribes and states to address and negotiate in gaming compacts. The rule sets out fundamental limits on what tribes and states can discuss online betting and iGaming. First, it confirms that compact requirements for online betting must directly affect how gaming works on a tribe’s territories. These include reservation lands or other zones owned or controlled by the Tribe.

Compact rules can’t change existing federal laws like the UIGEA Act (31 USC 5361-67). However, they can decide which government—State or Tribe—handles online gaming provided these conditions are met:

Both the applicable gaming compact and state law agree that if someone makes an online bet with the Tribe from anywhere in Florida, the location of the gaming action is where the accepting server is situated.
Tribal nations govern relevant gaming activities
Bettors playing are not considered to be within that Tribe’s Indian reservation lands unless another tribe within the State has given legal permission.

The rule’s first draft didn’t authorize tribes outside the state consent to let people bet online from their lands. However, the DOI put it in the final rule after the public said they wanted that option. Areas of Indian land controlled by other tribes in the same State would have no online gaming without this mechanism. The DOI noted in the final rule that this change could lead to new agreements between tribes and provide more income-earning opportunities in online gaming.

The Lucrative Gambling Compact Will Fund Conservational Initiatives

So, what made Justice Brett vote against the case dismissal? The good judge decided because he believed many considerations weren’t met. However, his lone vote was not enough to bring the case before the entire court. Florida recorded $357 million in revenue from the compact Between December 2023 and May 2024.

Forecasts indicate that the program will earn the communities hundreds of millions annually. Most of these funds will cater to environmental conservation projects. This has always been a critical focus for state leaders. A massive chunk of the funds will also support upland management, land acquisition, invasive species removal, and the Resilient Florida Grant Program. The latter aims to protect communities from flooding and storm damage.

This ruling is a significant victory for the Seminole Tribe and the State of Florida. A spokesperson for the jubilant Seminole Tribe expressed satisfaction with the court decision, highlighting that it promises a prosperous future for the Tribe and residents in other parts of Florida. The Supreme Court decision could serve as a model for other states, facilitating more widespread adoption of online gambling managed by tribal servers.