After multiple years of litigation, the Florida sports betting legal battle is coming to an official end.
Of course, for many, the battle ended as soon as sports betting in Florida relaunched last December. That was and is a fair stance to take. The Seminole Tribe, in all likelihood, would not have re-implemented their betting services if they thought they might be repealed again.
Many industry experts even subscribed to that logic. Plus, it had to help that the Supreme Court of the United States opted against taking the suit brought by West Flagler Associates, which argued the Florida sports betting compact violated the Indian Regulatory Gaming Act. Indeed, the Supreme court did not actually render a verdict. In some ways, though, they actually did. Deciding not to hear the case is a stance. And in doing so, they lent further merit to the Florida sports betting monopoly granted to the Seminole Tribe through its gaming compact with The Sunshine State.
Nevertheless, many wondered and even expected West Flagler Associates to explore other avenues of litigation. As it turns out, though, they will not be going the route. In fact, at the end of October, they struck a deal with the Seminole Tribe. And it is an agreement that effectively ends a debate that began all the way back in 2021.
Seminole Tribe and West Flagler Associates Enter Agreement that Ends Florida Sports Betting Monopoly Protests
Rather than pursue additional litigation, West Flagler Associates is entering a miniature partnership with the Seminole Tribe. Pat Evans of Legal Sports Report has the full lowdown, including quotes from important stakeholders:
“The Seminole Tribe of Florida has strengthened its monopoly on the Florida sports betting market through a deal with the party behind lawsuits challenging its status. The Seminole Tribe announced Monday that it had entered a deal with West Flagler Associates and associated companies to end legal challenges to the tribe’s Florida sports betting monopoly. In exchange for West Flagler not bringing future litigation, the tribe will offer jai alai on its Hard Rock Bet app.‘This is truly a win-win agreement for the Seminole Tribe and West Flagler,’ Seminole Gaming CEO Jim Allen said. ‘This agreement establishes a relationship of collaboration among the Seminole Tribe and West Flagler in the state of Florida. Rather than engaging in years of additional litigation, this agreement will allow the parties to work together to promote jai alai, which has played an important role in Florida’s gaming landscape for nearly 100 years.’”
For those who may not know, jai alai is an indoor sport. It consists of “bouncing a ball off a walled-in space by accelerating it to high speeds with a hand-held wicker, commonly referred to as a cesta.” Jai alai has been especially popular in Florida, because it emerged as an alternative to sports betting. Along with horse racing and harness racing, it functioned under pari-mutuel betting parameters. That allowed prospective Florida sports bettors to legally place wagers on outcomes.
What Prompted West Flagler’s Change of Heart?
Consideration for jai alai definitely factors into the story here. Additional promotion and exposure for the sports may pad West Flagler’s wallet. At the same time, other logic definitely must be at play.
Perhaps West Flagler is simply worn down. They lost multiple challenges to the Florida sports betting compact. Maybe they saw little to gain from continuing the battle.
More notably, recent comments from Seminole Gaming CEO Jim Allen may have also played a role. During a recent CNBC interview with Contessa Brewer, Allen intimated that the Seminole Tribe is open to Florida sports betting expansion in the future. Here is the quote that’s still making the rounds:
“We do recognize that long-term, some type of strategic relationship with some of the brands that really have marquee value could be helpful to both of us, and we are receptive to those conversations. I don’t think we’ve ever stated that we wouldn’t work with some of the other companies, whether it be Caesars, BetMGM, DraftKings or FanDuel. We’ve always stated that we’d be receptive to that conversation.”
To be sure, there is no timeline or concrete course for Florida sports betting expansion. And Allen did not mention other gaming operators in The Sunshine State. But if West Flagler believes the Seminole Tribe’s view on the sports betting market will continue evolving, they may view a near-term collaboration as one that sets the stage for them to join in down the line.
What Would Florida Sports Betting Expansion Look Like?
This question does not have a firm answer. But you better believe it involves mobile wagering.
The popularity of online sports betting in the United States continues to soar. Though the Seminole Tribe has a Florida sports betting app that can be accessed anywhere in the state, their reach is inherently limiting. Expanding the market to include other companies will draw in more business. Especially when we are talking about powerhouses like FanDuel and DraftKings.
Yet, many will wonder why the Seminole Tribe might allow competitors into the market. That answer is more definitive: They won’t. Not really.
See, the current gaming compact allows the Seminole Tribe to partner with other sportsbooks in the United States. Any operator that agrees to a collaboration would pay the tribe a substantial cut of their revenue in exchange for operating within the state.
Invariably, this could still eat into brick-and-mortar sports betting revenue in Florida. And as the only game in town, this would adversely impact the Seminole Tribe’s bottom line. However, partnerships with mobile sports betting sites would inevitably juice the Seminoles’ online wagering revenue. And as we already mentioned, this is the biggest growth arena in the industry.
If we had to guess, then, Florida sports betting is a sure thing. As for when it might take place, that’s a different story. It could happen soon. Or it could be years. Now more than ever, it really is up to the Seminole Tribe.
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