Temporary stay granted by US Supreme Court

The US Supreme Court has granted a temporary stay to two Florida pari-mutuel betting operators which has halted the state-wide launch of online sports betting. This decision carries heavy implications, creating uncertainty regarding the future of Florida sports betting, stemming from a long-standing dispute concerning the legality of the state’s gaming compact with the Seminole Tribe. The case involving operators, West Flagler Associates and the Bonita-Fort Myers Corporation, has prompted Chief Justice John Roberts to sign a US Supreme Court order preventing the tribe from launching sports betting state-wide. This decision will remain effective until a ruling has been made related to the case. However, this will prove a merely inconvenient delay as the Seminoles expect to relaunch sports betting anytime soon, although the projections to begin these operations in time for the first half of the NFL season have yet to be capitalised on.

West Flagler

West Flagler has already put plans in place to submit a formal writ certiorari in order to review the case by November 20th at the latest. Unfortunately, however, if the court accepts the case it could take years to reach a resolution. Their case revolves around whether the federal government had the authority to approve the Seminole’s gaming compact, which granted the tribe exclusive rights to offer mobile sports betting in Florida. West Flagler argues that this compact breaches several federal laws and the constitution, including but not limited to the Indian Gaming Regulatory Act (IGRA), Unlawful Internet Gaming Enforcement Act (UIGEA), and the Federal Wire Act. They also claim that the tribe’s monopoly is the Fifth Amendment’s Equal Protection Clause. These three legislative regulations pose three distinct questions that are critical for Supreme Court review. Defending against this stay, the Department of Interior argued that there is no compelling reason to grant certiorari to this case.

State challenge

Separately and in addition to West Flagler’s Supreme Court certiorari, the operator is also challenging the compact in state courts with a claim that Florida Governor, Ron DeSantis, exceeded his authority in approving it. This case is based on Amendment 3, a provision in the Florida constitution which restricts the expansion of casino gambling without a referendum.

The compact

Under the new regulations, the Seminole Tribe is permitted to offer mobile and retail sports betting, with online bets routed through tribal servers along with the authorisation of craps and roulette at the tribe’s casinos. The agreement will also permit the tribe to partner with pari-mutuel betting operators for marketing purposes, with operators allowed to receive 60 percent of income. Under this compact, the tribe will be required to pay 13.75 percent of their income to places that use a pari-mutuel betting operator 10 percent of casino sportsbook revenue to the state of Florida.

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