Could the Florida Online Sports Betting Market Soon Undergo Expansion?

With Florida online sports betting facing legal scrutiny yet another lawsuit, two familiar questions are returning to the forefront of industry discussion.

Firstly, is The Sunshine State in danger of having to shudder sports wagering operations, as it needed to when West Flagler Associates, a gaming operator in the region, filed their own lawsuit years ago? Secondly, and most notably, could this lawsuit lead to the expansion of online sports betting in Florida?

Last time around, the first question took center stage. Though West Flagler was arguing against the Seminole Tribe’s exclusive gaming compact, its filing didn’t really seem to have a specific endgame. If they were successful, the more likely result seemed to be a scenario in which Florida online sports betting ceased to be legal, and stakeholders would revisit square one.

This latest lawsuit, though, instead argues that voter approval is needed for the Seminoles to offer their current form of sports wagering. And by extension, because of this, it is also claiming the process should open up to include more gaming operators.

To what end this argument holds legitimacy remains to be seen. Few are commenting on its chances of success. But it is being talked about at all. And this seems to suggest its intent should be taken seriously.

The New Florida Online Sports Betting Lawsuit Makes a Familiar Argument

Of course, while the end goal of the newest lawsuit may be slightly different, the issue to which it takes exception is the same one as before. The Seminole Tribe currently offers Florida online sports betting through their Hard Rock betting app. According to their gaming compact with The Sunshine State, users should be able to access it while on tribal property only. And yet, customers can currently process wagers through the Seminole Tribe sports betting app from anywhere in the state.

This appears to be a flagrant violation of the compact at first glance. However, the Seminole Tribe argues that their Florida online sports betting app is an extension of tribal property, because the servers operating it are located on tribal grounds.

This same argument defined the legal proceedings over the past few years. The Florida Supreme Court ended up ruling in favor of the Seminole Tribe’s interpretation. West Flager tried to push the issue to the Supreme Court of the United States, but they opted against hearing the case. And that was that.

Or so we thought.

The Supreme Court’s decision is not a proxy for a final ruling. That has paved the way for the current plaintiff, identified as Protect the Constitution LLC, to take a similar aim, albeit with the overarching goal of expanding the Florida online sports betting market. The attempt is ambitious. Knowing that the last lawsuit failed, you can’t help but wonder what makes this one any different.

Key Factors that will Determine Fate of New Sports Betting Lawsuit in Florida

Writing for CBS 10 in Tampa Bay, Parisa Akbarpour outlined the two points of emphasis the lawsuit must prove:

• The Florida Legislature violated the state constitution (Amendment 3) by legalizing online sports betting instead of letting voters decide through a proposed constitutional amendment.

• The Florida Legislature cannot authorize the tribe's exclusive control over online sports betting because wagers are placed off tribal lands, which violates IGRA.

It is expected this case will eventually be elevated to the Florida Supreme Court. If they find Protect the Constitution’s argument valid, it will open the door for more online sports betting sites in the United States to enter the market.

Granted, the process of expansion may prove complicated. A larger amendment to the state constitution will need to be approved by the House and Senate. Then, residents in the state will have the opportunity to vote on whatever initiative is placed in front of them.

The first part of that process might be the toughest. It isn’t clear whether state officials will want to preserve access to Florida online sports betting. Like other states, Florida may decide tribal-exclusive retail sports betting is the larger priority.

Then again, the popularity of online sports betting in the USA is undeniable. Florida would be leaving plenty of potential tax revenue on the table by eliminating the mobile element altogether. Still, whatever happens with this lawsuit, they’ll have to reconcile the gaming compact with the Seminole Tribe. The agreement calls for exclusivity. Opening up the market in any way seemingly breaks that, which means any expansion must likely be achieved through collaboration.

What Does This All Mean for Florida Sports Bettors Right Now?

As this latest legal battle plays out, plenty of people have asked whether Florida sports betting operations will again be paused. Daniel Wallach, an attorney who specializes in gambling, doesn’t think that will be the case. From Akbarpour’s reporting over at CBS 10 in Tampa:

“Unlike the last lawsuit that involved injunctions and the shutting down of the Hard Rock Bet app as the legal battle played out, Wallach said it's not likely anything will happen until a final ruling in court. ‘They're going to take this case all the way,’ Wallach said. ‘And I think the expectation is that this will keep going up the ladder and eventually the Florida Supreme Court will accept review on the case.’”

These sentiments will be a relief for Florida sports betting. Especially those who enjoy betting on football. The Sunshine State has technically only had legal sports betting for one full college football and NFL season so far. Another cease-operations situation most definitely wouldn’t be well received among sports betting customers.

Yet, Wallach’s thoughts also imply this lawsuit isn’t going anywhere anytime soon. If Protect the Constitution intends to take “this case all the way,” it lends an air of doubt to the future of Florida online sports betting.

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