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Legal Woes Continue Holding Back Florida's Sports Betting Progress
By Jeff Osienya Aug 16, 2023 LegalityAs other US jurisdictions continue enjoying the fruits of a regulated sports betting market, Florida is still plagued by a slew of legal hurdles that prevent any substantial progress towards market debut. Here’s a look into the latest legal challenge.It’s not all sunny in the Sunshine State, at least in reference to regulated sports betting efforts. The state has hit yet another legal snag in its long-standing quest to legalize online gambling within the boundaries of the state. The latest legal debacle affecting the sports betting scenery in Florida involves the West Flagler Associates who just recently filed a petition for a rehearing 'en banc' in their sports wagering case against the Seminole Tribe of Florida as well as the US Department of Interior. Whilst many consider the outcome of this latest move as being too early to call, it remains to be seen in whose favor this should work out.
Referencing the June 30th decision by the DC Circuit Court of Appeals that overturned a district court decision that had put sports betting on hold in the state, the Seminole Tribe issued a brief statement that read in part:
Quote“It’s important to note the three Judge panel of the US Court of Appeals for the District of Columbia Circuit issued a unanimous decision in favor of the US Department of Interior, which approved the Gaming compact between the Seminole Tribe and the State of Florida.”
How the Case Has Unraveled So Far
In 2021, a federal judge ruled that the deal between the Seminole tribe and the State of Florida had violated federal gambling laws. The deal involved the Magic City Casino which is located in Miami-Dade County as well as the Bonits Springs Poker Room which is located in Southwest Florida. That said, a three-judge panel of the U.S. Circuit of Appeals for the District of Columbia in June would overturn U.S. District Judge Dabney Friedrich’s decision, a ruling that gave the go-ahead for sports betting to be rolled out throughout the state.
The motion presented before the court sought a rehearing of the case before the appeals court, a procedure that is normally referred to as an ‘en banc’ hearing. This was filed by West Flagler Associates, who are the former owners of the Miami Magic City Casino and who were also the plaintiffs of a case that overturned the 2021 betting compact between the state and the Seminole tribe. The case was filed in response to Florida Governor Rob De Santis signing an agreement with the Seminole Tribe of Florida, whose chairman Marcellus Oscella Jr. represented it. The agreement was poised to run for 30 years, during which the tribe would have control over sports wagering throughout the state. In return, the Seminole tribe agreed to pay the state at least $2.5 billion annually for at least over the first half a decade, with the expectation being that billions of other dollars would be paid to the state in the years that followed.
The framework of the sports betting deal would call for a ‘hub and spoke’ arrangement. This meant that bettors could place their wagers anywhere within the confines of the state of Florida, as long as those bets were taken through servers owned by the Seminole tribe. While the U.S. Interior Secretary initially gave this plan the go-ahead, a spanner was thrown in the works when Judge Friedrich in November 2021 ruled that this arrangement would be contrary to the federal Indian Gaming Regulatory Act. This was because it would allow for gambling off the casino property owned by the tribe in question. With the Seminole tribe initially rolling out the Hardrock sports wagering app, it became operational for some weeks before it eventually stalled due to the many legal battles fought in the State.
In its submission to the courts, West Flagler argued that the approval of this arrangement would constitute a violation of the Equal Protection Clause of the Constitution. This was detailed in a 63-page brief that read:
Quote“The opinion departs from this prior case law by holding that a tribe and state may use the IGRA process to obtain Secretarial approval of a compact purportedly authorizing a tribe to conduct gaming statewide i.e. predominantly off Indian lands. It says the secretary may provide such an approval even where-as here- the law of the state prohibits the type of gambling in question if conducted off Indian lands.”
Are We Headed to the Apex Court of The Land?
Should the latest petition fail, many anticipate that the next battleground could be the U.S. Supreme Court. In fact, some in the industry are looking forward to this, seeing that it would put to an end, a long-standing battle that has only derailed the sports wagering progress in Florida for quite some time now. This case may also form a great reference for other states where there are likely to be tribes and states that will adopt a similar compact to the one employed by the Florida state and the Seminole tribe. Seeking clarification at this stage could save other states lots of time in what would be prevalent law battles.
Chipping in on this case, was Norva Southeastern University professor Bob Jarvis, who sees several flaws in the argument brought forth by WFA. He opined:
Quote“Once again, WFA claims that IGRA does not permit ‘hub and spoke’ gambling operations. IGRA says nothing about the issue because the possibility of placing bets over the internet did not exist in 1988. WFA claims that in the absence of express authorization, IGRA should be read as a denial. WFA wants to litigate the compact itself but the panel made it clear it was not ruling on the compact but only Secretary Haaland’s decision not to act on the Compact.”
Jarvis predicts that the full D.C. Circuit will not see the WFA’s point of view and that it will be viewed as an improper attempt to get a second bite at the apple.
The Clock is Ticking For Florida's Sports Betting
As the legal debacles in the Sunshine State continue, it remains to be seen when a resolution on these matters will come. It is however noted that the Florida sports gaming market would have loved to be involved in NFL sports wagering which is set to resume on September 7th. Stay tuned for any updates that may come about between now and that date. We’ll always keep you in the loop.
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