Appeals Court Shoots Down Challenge to Legal Sports Betting Parameters in Florida

There was huge news out of Florida on Monday surrounding the state's on-again, off-again legal sports betting situation. The state's federal appeals court effectively shot down an effort to throw out a previously negotiated gaming compact between the state of Florida and the Seminole Tribe.

Back in 2021, Governor Ron DeSantis extended what was a virtual monopoly of the gambling industry in the state to the Seminole Tribe to include sports betting. The Seminole Tribe at that time launched its Hard Rock legal sports betting platform, which lasted for a whopping 34 days before litigation ended that run.

The renegotiated compact was controversial at the time ... and still is to some, including the parties that have been challenging the merits of the agreement.

Monday’s ruling may have opened the gates for a quick "relaunch" of legal Florida sports betting with the Seminole Tribe's Hard Rock Bet seemingly ready to go. Sept. 18 is earmarked as the earliest Hard Rock Bet could launch.

The Seminole Tribe responded to the ruling in a statement.

“The Seminole Tribe of Florida is pleased with today’s denial of the request for an en banc hearing by the D.C. Circuit Court of Appeals,” read the statement

At stake

Control over one of the biggest and most exciting sports betting markets in the country is on the line. The Seminole Tribe currently owns the rights to all legal sports betting in the state and figures to benefit handsomely from any legalized sports wagering in the state. 

The Seminole Tribe, for their part is expected to pay the state $2.5 billion over the first five years with an estimated $6 billion over 10 years for the right to control legal sports betting in the Sunshine State. 

There are other entities that have been chasing their share of the enormous pot that a legal sports betting platform could create in Florida, however. Those include the latest challengers that had their request for a rehearing on their objections to the compact effectively shot down. 

Groups of pari-mutuel operators have been fighting and apparently will continue to fight the Seminole Tribe compact even though there have been significant victories so far.

Florida has a population of 21.5 million, third largest in the U.S. It has multiple professional sports franchises and a tourism sector that is rivaled by few across the country. Roughly 120 million people visit Florida every year. Florida would immediately become one of the largest legal sports betting markets in the country once launched.

It is estimated that 2,200 jobs will be created by a legal sports betting platform in the Sunshine State. Florida state and local tax coffers would also benefit to the tune of between $500 million and $600 million annually for any legal sports betting platform.

At issue ...

The U.S. Court of Appeals for the District of Columbia District denied West Flagler Associates a rehearing in their Florida sports betting case in which they objected to the Seminoles’ virtual monopoly of the gambling industry in the state. It also argued that the Department of Interior didn’t rightfully approve the agreement.

The Associates had requested an en banc hearing, which involves the entire court. Not one judge on that panel decided to hear the request.

The ruling effectively upholds a June court decision that upheld the 2021 compact signed between the State and the Seminole Tribe.

Chances are that the issue heads to the Supreme Court in the very near future.

So, what now?

The legal challenges certainly aren't over yet but legal sports betting has never been as close as it is in Florida.

The next step is up to the Seminole Tribe, which could launch a legal sports betting platform in time to take advantage of Week 3 of the lucrative NFL season.

So, it is wait and see again in Florida for a legal sports betting platform that has potential to benefit the pro sports teams that call the state home, hopeful bettors there, and ultimately tax coffers that stand to benefit from a platform that is already legal in 37 states across the country.