Florida Seeks to Dismiss Sports Betting Lawsuit

Florida’s top legal office is asking a Leon County judge to throw out a lawsuit challenging the state’s 2021 gambling agreement with the Seminole Tribe, a deal that opened the door to online sports betting statewide.

No Legal Standing

Delaware-based limited liability company Protect the Constitution originally filed the lawsuit in April, arguing that the compact between the state and the tribe violates a 2018 constitutional amendment, which gives Florida voters the exclusive right to approve casino gambling. 

However, in a 34-page filing last week, Attorney General James Uthmeier’s office urged the court to dismiss the case, saying the group lacks legal standing and that the compact complies with the amendment.

Gov. Ron DeSantis negotiated the agreement, which was later approved by the Legislature. Under the deal, the Seminole Tribe can accept online sports bets from anywhere in Florida, as long as the bets are processed through servers located on tribal land. 

The state also benefits financially from the deal that also enabled the tribe to provide roulette and craps at its casinos, with a guaranteed $2.5 billion in revenue over the first five years and the potential for much more.

“That agreement ensures that hundreds of millions of dollars flow to the tribe each year — money that supports the tribe’s efforts to improve every aspect of life on tribal lands,” state lawyers wrote. 

“The state benefits as well, with hundreds of millions more in annual revenue sharing accruing to the state. Plaintiff’s constitutional challenge to the 2021 compact fails as a matter of law.”

The Voting Issue

The 2018 amendment states that any new casino gambling must be approved by Florida voters through a ballot initiative. However, the state argues that tribal gaming is a clear exception, thanks to the Indian Gaming Regulatory Act.

Florida, which is expected to be the only one to legalize iGaming in the upcoming years, also contends that online sports betting wasn’t widely offered in casinos when the amendment passed in 2018 and doesn’t meet the definition of “casino gambling” under Florida law.

“Casino gambling or not, sports betting was properly authorized by the compact,” last week’s motion explained. 

The lawsuit, which also targets the Florida Gaming Control Commission, claims that mobile sports betting is being offered without voter approval. 

It follows failed legal efforts from pari-mutuel operators, who recently lost a similar challenge in the Florida Supreme Court.

The same motion, however, argued that online sports betting has been “validly addressed in the 2021 compact”, with the latter being “exempted from the citizen-initiative process.”Now, the case moves forward in Leon County Circuit Court, where it’s been assigned to Judge Jonathan Sjostrom.