Florida Sports Betting Lawsuit Receives Ruling

The Seminole Tribe just grabbed another major Florida sports betting victory.

A Leon County circuit judge just dismissed a lawsuit filed against the tribe by Protect The Constitution, LLC. The filing in question alleged that the legalization of sports betting in Florida required voter approval rather than the amendment of a gaming compact. If the argument sounds familiar, it’s because West Flagler Associates argued something similar in their own lawsuit against the Seminole Tribe a few years ago. Though their motion initially led to the shudder of Florida sports betting services, it ultimately failed to make its way up the ladder. The Florida Supreme Court upheld the Seminole Tribe’s gaming compact. When West Flagler Associates attempted to elevate the lawsuit to the Supreme Court of the United States, the latter opted against hearing the case. It fizzled out from there, with West Flagler Associates reaching an agreement with the Seminole Tribe not to pursue other avenues of litigation.

This lawsuit from Protect The Constitution differed in a few ways. Most notably, the LLC wasn’t registered in Florida. Instead, Protected the Constitution apparently identified itself as a “Delaware company” and alleged that each of its members "offers products in the state of Florida and has suffered harm, including reduced revenue, as a result of the legislation purporting to authorize 'casino gambling' throughout the state."

While Protect The Constitution’s (apparent) clients added a layer of intrigue to these proceedings, they never divulged who they were representing. According to CBS News in Florida, this contributed to the lawsuit’s fragile standing. Judge Jonathan Sjostrom, who tossed the lawsuit, said in his ruling that Protected The Constitution “fails to provide meaningful information regarding the identity, activities, location, business and business methods of its constituent members, it fails to allege facts to demonstrate standing.”

Here Was The Key Issue In The Florida Sports Betting Lawsuit

Just like West Flagler Associates before them, Protect The Constitution takes issue with the Seminole Tribe offering what they believe amounts to illegal Florida online sports betting.

The gaming compact, authored by Governor Ron DeSantis, allows for sports betting on tribal land. This, in theory, limits the use of Florida online sports betting apps to people visiting one of the Seminole Tribe’s casinos.

However, the Seminole Tribe Hard Rock sports betting app can be accessed anywhere in The Sunshine State. The Seminole Tribe believes that because the servers operating the Hard Rock Bet app are located on tribal grounds, the app itself is therefore an extension of tribal property.

As the folks over at CBS News outline, Protect The Constitution is not buying into this interpretation:

“The amendment said ‘nothing herein shall be construed to limit the ability of the state or Native American tribes to negotiate gaming compacts pursuant to the Federal Indian Gaming Regulatory Act for the conduct of casino gambling on tribal lands, or to affect any existing gambling on tribal lands pursuant to compacts executed by the state and Native American tribes pursuant to IGRA.’ The Indian Gaming Regulatory Act, or IGRA, plays a key role in tribal gambling issues across the country. But Protect the Constitution has argued that doesn't make the sports-betting deal constitutional. ‘When the voters of Florida decided to add (the gambling amendment) to the Constitution, they understood that it would give them the sole right to authorize sports betting,’ Protect the Constitution said in an Oct. 20 court document. ‘Today, by legislative fiat, betting on sporting events occurs across the state, all without the people's authorization. That is unconstitutional."

This is a compelling argument for many. It’s not hard to see why. The Florida sports betting market is a one-operator sector at the moment. Since it’s one of the most lucrative markets for sports betting in the United States, any company in the gaming industry wants a crack at offering their own services. While this lawsuit would not have accomplished that, it would have limited the Seminole Tribe’s online reach, which may in turn help out any gaming operators licensed to offer in-person competitions adjacent to betting.

Protect The Constitution’s Lawsuit Was Doomed From The Start

Few assigned much value to Protect The Constitution’s lawsuit when it was initially filed.

First and foremost, the eradication of West Flagler’s previous motion was considered all the approval needed for the Seminole Tribe to continue offering Florida sports betting in its current form. Beyond that, the unwillingness to disclose the clients represented in Protect The Constitution’s lawsuit never sat right.

How were they supposed to prove the harm allegedly being reaped upon their members if they couldn’t identify said members? That was always a ridiculously tough undertaking. Granted, it would not have necessarily done anything had they disclosed their clients/members. But it does seem like it would have been easier to prove financial harm was being done to their business models.

To that end, Protect The Constitution has until late November to file a revised version of the lawsuit. While it is not clear whether they’ll go that route, legal analysts have been quick to note that the judge did not explicitly rule on the “underlying” constitutional issues. This could lead the LLC to believe that they have a case if they’re willing to publicize their clients.

Frankly, we would bet against Protect The Constitution filing a reversion. And if they do, we’d expect it to be unsuccessful. Yet, as Florida sports betting has shown before, another round of litigation may always be right around the corner no matter what we expect or predict.

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