-
Casinos for you
Parimutuel Duo Files Federal Suit Against Florida's Seminole Gaming Compact
By Jeff Osienya Aug 19, 2021 LegalityFollowing DOI’s approval of the Florida-Seminole gaming compact, two parimutuel sports betting operators have sued the Interior Secretary and the DOI in a DC federal court. According to the lawsuit, the compact violates the Wire Act, IGRA, and UIGEA.The owners of two parimutuel facilities in Florida filed a federal lawsuit to challenge the 30-year gambling compact inked by Governor Ron DeSantis and the Seminole Tribe to give the latter the mandate to offer statewide online and mobile sports betting. The lawsuit was filed on Monday, August 16th in Washington DC by West Flagler Associates and the Bonita-Fort Meyers Corp, owners of Magic City Casino in Miami-Dade County, and Bonita Springs Poker Room in Southwest Florida, respectively.
This latest lawsuit comes just two weeks after the Bureau of Indian Affairs (BIA), under the US Department of the Interior (DOI), declined to act on Florida’s tribal-state gaming compact – which constitutes approval. The BIA had until August 5th, the 45th day of the compact review period by law, to approve, reject or take no action. Interior Secretary Deb Haaland and the DOI are the defendants in the suit.
Even before the DOI’s approval, the arrangement spearheaded by Gov. DeSantis and Marcellus Osceola Jr, the Chairman of the Seminole Tribe of Florida, has been facing resistance. In June, the Miami Beach mayor urged the DOI to reject the compact, but the mayor’s efforts were futile from how things have turned out. The Havenick family, which owns both West Flagler Associates and the Bonita-Fort Meyers Corp, had also filed a similar federal suit last month in a Tallahassee court. Meanwhile, other parties have been pushing for a constitutional amendment initiative, convincing Florida voters to support expanded gambling in the state.
Federal Lawsuit: Tribal-State Compact Violates Wire Act, IGRA and UIGEA
In a 43-page text, the plaintiffs of the federal suit deem the tribal-state compact as “legal fiction” and “capricious” for various reasons. For one, the suit claims that the compact breaches the federal Wire Act as it “unlawfully” authorizes sports betting out of tribal reservation land. Moreover, the case asserts that the tribal-state compact is trying to circumvent the Florida constitution, the Unlawful Internet Gambling Enforcement Act (UIGEA), and Indian Gaming Regulatory Act (IGRA). The suit additionally maintains that the DOI lacked the authority to allow in-person or online sports betting as the activities fall outside the scope of federal gaming compacts.
Further, according to the lengthy lawsuit, the compact Gov. DeSantis and Seminole Chairman Marcellus Osceola Jr signed is illegal as it goes against the Fifth Amendment of equal protection. To back this accusation, the suit indicates that the tribe has received preferential treatment as it has been granted a statewide monopoly over online sports betting – any other party in Florida is criminally barred from offering the activity.
The other complaint that the plaintiffs are raising in the suit is that online gaming will likely crush the in-person business that parimutuels in Florida currently rely on. Besides, given that the compact requires parimutuels to partner with the Seminole tribe to offer online and mobile sports betting, they have been placed between a rock and a hard place. They (parimutuels) will either have to abide by the uneconomical “hub-and-spoke” model described by the compact or risk losing even more business.
On top of that, the suit goes as far as doubting the sanity of authorizing statewide internet sports betting by calling to question quotes from lawmakers when the bill was being passed in legislative sessions. The suit cited a statement made by Republican Representative Randy Fine, the chairperson of the House Select Committee on Gaming, who said:
Quote“We’re going to allow the Seminole Tribe to offer sports betting where you can be sitting in your bathtub or sitting on your couch, thinking about a football game, and you can make a wager, regardless of where you physically are, on your cellphone.”
Tribal Online & Mobile Sports Betting Debut Nears After DOI Approval
In a 12-page letter sent to both the state and the Seminole Tribal Nation, dated August 6th, the DOI said: “as a result, the Compact is considered to have been approved by operation of law to the extent that it complies with IGRA and existing Federal law.” The letter further notes that:
- evolving technology should not be an impediment to tribes participating in the gaming industry;
- the pursuit of mobile gaming is in line with the public policy considerations of IGRA to promote tribal economic development, self-sufficiency, and strong tribal governments;
- the purposes of IGRA would be served through the improvement of tribal-state cooperation in the regulation of mobile wagering.
Now, a notice of approval is to be published in the Federal Register within 90 days of the end of the review period, and the compact will become effective. So, unless the federal court blocks the approved compact, tribal online and mobile sports betting in Florida can start as early as October 15th, 2021.
Following DOI’s thumbs-up, Gov. Ron DeSantis, who signed the compact after the legislature passed it in May, released a written press statement on the same day saying:
Quote“The final approval of this historic gaming compact is a big deal for the State of Florida. This mutually beneficial agreement will grow our economy, expand tourism and recreation and provide billions in new revenue to benefit Floridians. 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.”
Marcellus Osceola Jr., Chairman of the Seminole Tribe of Florida, also chimed in with a written media briefing to say:
Quote“Today is a great day for the people of Florida, who will benefit not only from a $2.5 billion revenue-sharing guarantee over five years but also from statewide sports betting and new casino games that will roll out this fall and mean more jobs for Floridians and more money invested in this state. We thank Governor DeSantis, President Simpson, Speaker Sprowls, and the Florida Legislature for their leadership and hard work.”
You might also like