Florida welcomes back legal sports betting – exactly when is not known

Florida has rekindled the possibility of legal sports betting, thanks to a pivotal court decision. This decision, which declined a re-hearing of a legal challenge, could set the stage for online sports betting anchored at Seminole Tribe of Florida properties, including the Seminole Hard Rock Hotel & Casino Hollywood.

Florida’s sports betting future

On Monday, the U.S Circuit Court of Appeals for the District of Columbia chose not to revisit a legal dispute brought forth by two rival gambling establishments, Magic City Casino in Miami and Bonita Springs Poker Room in Southwest Florida. This dispute revolved around Florida’s 2021 Compact with the Seminole Tribe, a pact that had previously legalized sports betting on tribal lands. As a result, the Seminoles could soon regain their dominance in online betting, possibly just in time for major events like the Super Bowl and March Madness.

Under the 2021 agreement, the state stood to gain approximately $2.5 billion, while the Seminole Tribe had full control over the sports betting sector. Residents had briefly enjoyed the Hard Rock Sportsbook mobile app late that year, but it was abruptly halted due to the legal challenge.

With Monday’s decision, the industry’s legal return becomes a reality, although the Seminole Tribe has yet to unveil its plans for the relaunch.

Gary Bitner, a spokesperson for the Tribe, declined to comment on the “impact of the decision” but said in a statement that “The Seminole Tribe of Florida is pleased with the denial of the request for an en banc hearing by the U.S. Circuit Court of Appeals for the District of Columbia.”

According to Bob Jarvis, a law professor and gambling expert at Nova Southeastern University in Fort Lauderdale, the decision was inevitable. He anticipates that online sports betting could make a comeback by the end of the year, although potential additional legal challenges might pose some hurdles.

“We are certainly, inexorably moving closer to the day when we will have legalized sports betting in Florida,” Jarvis told the South Florida Sun Sentinel. “It is coming. It’s just a question of when it will be.”

Not out of the legal woods yet

While sports betting has technically gained legal status across Florida, it remains susceptible to potential legal obstacles, albeit temporarily, according to experts.

The foundation of this agreement between Florida and the Seminole Tribe rests on the premise that online bets placed anywhere in the state are still technically considered to occur on tribal lands. This interpretation hinges on federal law, allowing such betting to proceed.

A lawsuit brought forth by West Flagler Associates, representing Magic City Casino and the Bonita Springs Poker Room, challenged this notion. They contended that the Department of the Interior should have intervened to prevent the agreement because the wagers were being placed off tribal lands, potentially violating federal law.

Initially, a circuit court favored West Flagler’s argument, but in June, three members of the appeals court unanimously overturned that decision. However, sports betting remained illegal. West Flagler Associates subsequently sought an “en banc” re-hearing, involving all court members, but this request was denied on Monday.

From a technical standpoint, Monday’s development signifies the return of legal sports betting, potentially within weeks, not months. However, the Seminole Tribe may opt to wait and observe their opponents’ actions before launching the betting operation, as they seek to avoid any potential future setbacks.

Moving forward with sports betting

According to Jarvis, there are two potential courses of action, albeit temporary ones, that could still pose obstacles.

The first involves an appeal to the Supreme Court, a move likely to be pursued by West Flagler. Such an appeal would halt sports betting once more. While some legal experts believe this challenge has the hallmarks of a Supreme Court case, others predict that the court may decline to take it up, possibly making a decision by year-end.

Daniel Wallach, a gambling law specialist, observed that the recent ruling seems to meet at least three criteria often considered indicative of a Supreme Court review.

“This is obviously an important question of federal law, as it affects relationships between tribes and state and local governments across the country. It also impacts non-tribal gaming operators since tribal control of statewide remote wagering would dramatically alter the competitive landscape for digital gaming,” he said.

But some legal experts hold a different view, asserting that the Supreme Court might not find such a case appealing. Michael Howard Wolf, a gaming attorney situated in Fort Lauderdale, argued that the court typically shows deference to administrative agencies, particularly the National Indian Gaming Commission in this instance.

“It would really have to be a serious departure from law for the Supreme Court to want to weigh in on it unless they think there’s some constitutional issue involved,” Wolf said.

Jarvis concurred, emphasising that the Supreme Court’s inclination would likely lean towards not taking up the case by year-end. He also noted that even in the event of a Supreme Court loss for the Seminoles, they could turn to Congress and request an amendment to the Indian Gaming Regulatory Act, a potential avenue to address any adverse outcomes.

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