Florida Supreme Court rejects sports betting deal

In a unanimous decision this week, the Florida Supreme Court rejected a petition challenging the legality of a gambling compact that allows the Seminole Tribe to offer online sports betting throughout the state. This ruling marks another defeat for pari-mutuel companies West Flagler Associates and Bonita-Fort Myers Corp., which have been contesting the compact in both state and federal courts.

“Quo warranto is not and has never been the proper vehicle to obtain a declaration as to the substantive constitutionality of an enacted law. For that reason, we deny the petition because the relief that petitioners seek is beyond what the writ of quo warranto provides”

Justice Meredith Sasso

The controversy originated from a 2021 agreement signed by Florida Governor Ron DeSantis and Seminole Tribe Chairman Marcellus Osceola Jr. This 30-year deal, known as a compact, features a “hub-and-spoke” model enabling the tribe to handle mobile sports bets placed anywhere in Florida through servers located on tribal land. Additionally, the compact permits the Seminole Tribe to offer new casino games such as craps and roulette and to build three new casinos in Broward County. In return, the tribe has committed to paying the state a minimum of $2.5 billion over the first five years, with expectations of significantly higher revenue over the compact’s duration.

The plaintiffs, including business owner Isadore Havenick, argued that the compact violated a 2018 constitutional amendment restricting casino gambling expansion. They sought a “writ of quo warranto,” a legal action questioning the state’s authority to enter into such agreements. However, the court’s 11-page opinion, authored by Justice Meredith Sasso, (pictured above) cited precedent to deny the petition. Sasso referenced a 1920 ruling that quo warranto is intended to challenge the right to hold office or exercise state-derived privileges, not to question the constitutionality of enacted laws.

Legal battle over statewide online sports betting

The ruling underscores the court’s stance that quo warranto is limited to questioning the exercise of state power rather than assessing the merits of legislative actions. The justices suggested that the pari-mutuel companies could pursue a more conventional lawsuit in circuit court if they wish to challenge the compact’s constitutionality.

The compact has already begun to reshape Florida’s gambling landscape. In November, the Seminole Tribe started accepting mobile sports bets, and by December, they had introduced new table games and sportsbooks at their casinos. Jim Allen, CEO of Seminole Gaming and chairman of Hard Rock International, stated that the tribe expects to contribute at least $650 million to the state over the next year under this agreement.

Gary Bitner, a spokesman for the Seminole Tribe, celebrated the court’s decision, calling it “a major victory for the people of the state of Florida.” He emphasized the financial benefits, noting that the compact will provide substantial funding for state needs while offering Floridians and visitors enhanced gambling options.

The pari-mutuel companies’ legal battle is far from over. In a federal case, a U.S. district judge initially ruled in favor of the companies in 2021, but an appellate court later upheld the U.S. Department of the Interior’s approval of the compact. The companies have now sought a review from the U.S. Supreme Court, challenging the appellate court’s decision. They argue that the federal Indian Gaming Regulatory Act (IGRA) does not permit the Department of the Interior to authorize gambling off tribal lands.

Their petition to the U.S. Supreme Court, filed in February, contends that the compact effectively bypasses state constitutional prohibitions against online sports betting conducted off tribal lands, creating a gambling monopoly for the Seminole Tribe. Attorney Hamish Hume from Boies Schiller Flexner LLP stressed the national implications, suggesting that the appellate court’s decision, if left unchallenged, could set a precedent allowing other state-tribal compacts to circumvent state laws and IGRA’s limitations.

West Flagler Associates and Bonita-Fort Myers Corp., which operate jai alai licenses and a poker room respectively, claim that statewide online sports betting could harm their businesses financially. Despite their ongoing legal efforts, representatives of the companies did not comment on this week’s ruling.

This latest decision by the Florida Supreme Court solidifies the compact’s standing but also signals potential future legal battles as the issue of state versus federal authority in gambling regulation continues to unfold.