Plaintiffs in Latest Florida Sports Betting Lawsuit Cite Financial Harm as a Driving Argument

More details from the latest Florida sports betting lawsuit are starting to trickle out. And as the fuller picture presents itself, this legal battle is beginning to look a lot like the previous one.

Protect the Constitution LLC is a self-described “Delaware limited liability company, which represents the interests of its members to advance lawful 'casino gambling' through petitioning activity, including by challenging unconstitutional 'casino gambling.” They recently filed a lawsuit contesting Florida sports betting, declaring its legalization and the exclusive gaming compact between the Seminole Tribe and The Sunshine State unconstitutional.

Though sports betting in Florida was technically legalized with voter approval, the gaming compact is a separate deal. What’s more, the Florida online sports betting element of the Seminoles’ offerings is the subject of debate. Their Hard Rock sports betting app currently allows residents to place wagers from anywhere inside the state. Opponents of the setup argue that the gaming compact only allows bets to be placed on tribal property.

As a result, Protect the Constitution LLC maintains that the legalization of Florida sports betting required a constitutional amendment, and thus a separate vote. Under their interpretation, sports wagering in The Sunshine State should be null and void. 

If this argument sounds familiar, well, it should. West Flagler Associates, which operates gaming establishments throughout the state, previously contested the Seminole Tribe’s gaming compact years ago. At first, they were successful in getting Florida’s sports betting operations repealed. However, after much litigation, their case fizzled out. They have since reached an agreement with the Seminole Tribe, ending the ordeal altogether. 

Except, now a new version of the issue is on the table. And as experts try to figure out whether it holds any weight, one question has lingered: Why is a Delaware LLC getting involved in Florida’s gaming laws?

Light is Being Shined on the Motives of Florida Sports Betting Plaintiffs

As it turns out, Protect the Constitution LLC represents the interests of industry-adjacent businesses in the Florida region. That explains their interest in this matter. It also explains why they claim to be suffering stark financial losses following the legalization of Florida sports betting. Here is Erik Gibbs of Next.io with the full details:

“[Protect the Constitution LLC’s] purpose is to represent the interests of its members in advocating for legally sanctioned casino gambling, particularly by opposing any forms of gambling it views as unconstitutional. According to the complaint, all of the members of Protect the Constitution LLC, which aren’t named, conduct business in Florida. All have experienced financial harm—such as declining revenue—due to the state’s implementation of legislation that permits widespread casino gambling without the required public vote.”

It isn’t unusual that the businesses being represented remain unnamed. But it is at least somewhat interesting. The names may eventually get released to the public. For now, filing a motion under the LLC seems like a way of avoiding negative public backlash from Florida sports betting supporters. If company names are associated with this lawsuit, it could hurt their business models even further. 

Whether their case is legitimate remains a separate matter. You can understand why their own gaming businesses have suffered. The Seminole Tribe has a monopoly on Florida sports betting. That disincentives people from gambling anywhere else—not just on sports, but on everything. Seminole Tribe casinos, after all, offer a one-stop shop for all gaming opportunities now.

Still, this case isn’t about proving financial loss. That’ll be part of it. But the increased legalization of online sports betting in the United States has without question hurt a ton of brick-and-mortar business models. That doesn’t make said legalization unconstitutional. 

Protect the Constitution LLC is Arguing the Florida Voters were Misinformed

For Protect the Constitution LLC to be successful, they have to actually show the Seminole Tribe’s gaming compact violates the constitution. It was the same story with West Flagler Associates. And as they found it, this is no easy task.

However, it does seem like Protect the Constitution LLC is taking a slightly different approach. They are apparently arguing that Florida voters were misinformed or misled when sports betting was initially legalized. Here is Gibbs with more:

“[This] suit argues that this legislative action contradicts Article X, Section 30 of the Florida Constitution, which was added by voter initiative in 2018. The provision mandates that any new casino gambling, including sports betting, must be approved through a citizens’ initiative. The complaint emphasises that this amendment was explicitly promoted to voters as a way to ensure that only the public—not state officials—would have the authority to expand gambling in Florida.”

Multiple attorneys who have commented on the matter seem genuinely intrigued by this approach. And on its face, it seems to have some legs. If voters were making decisions as if eventual gaming expansion would be run through them only to see Governor Ron DeSantis and his office broker a gaming compact with the Seminoles, that does seem to be, at the bare minimum, a gray area.

This isn’t meant to imply that Protect The Constitution LLC will emerge victorious. The Supreme Court of the United States already passed on hearing the previous Florida sports betting case. And claims similar to this one were made throughout that process. 

Is Protect the Constitution LLC’s framing distinct and effective enough to warrant a different outcome? We’re eventually going to find out. Whether that knowledge will come anytime soon is anyone’s guess. 

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