The DC Circuit Court has ruled that the Seminole Tribe can proceed with mobile sports betting in Florida, overturning a prior federal district court decision. This earlier ruling determined that a 2021 compact with the tribe, which essentially granted it a monopoly on sports betting, violated the Indian Gaming Regulatory Act (IGRA).
The lawsuit was brought by West Flagler Associates and Bonita-Fort Myers Corporation, which forced Hard Rock Digital’s sportsbook offline shortly after it launched in December 2021.
Seminole spokesman Gary Bitner expressed satisfaction with the unanimous decision, stating, "It is a positive outcome for the Seminole tribe and the people of Florida and for all of Indian Country. The tribe is fully reviewing the decision to determine its next steps."
Background on the case dates back to early 2021 when Florida's Governor Ron DeSantis approved a compact allowing the Seminoles to offer both mobile and in-person sports betting. This compact also included provisions for roulette and craps games at the tribe's casinos, with betting operations routed through servers located on tribal land.
The terms of the agreement allowed the Seminoles to partner with parimutuel betting operators, resulting in a 13.75% share payment to the state, along with a 10% contribution from the tribe's casino sportsbooks. Following ratification by the Florida legislature and signature from Governor DeSantis, the US Department of the Interior did not act within the required 45-day window, allowing the compact to come into effect.
However, West Flagler Associates and Bonita-Fort Myers Corporation filed their lawsuit in September 2021, claiming that the mobile betting aspect expanded beyond tribal lands, which they argued could only be approved through a statewide referendum. They also contended that the compact violated both the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Wire Act, suggesting that bets could be placed from jurisdictions where online wagering is prohibited.
Initially, the 2021 lawsuit was successful; the court ruled that based on the IGRA, bets must be placed on tribal land, and the tribe could not change tribal land boundaries or convert off-reservation gaming to on-reservation gaming. The judge noted that the compact authorized betting by patrons "physically located in the State [of Florida] but not on [the tribe’s] Indian lands."
In its recent ruling, the Circuit Court judges dismissed claims that Secretary of the Interior Deb Haaland violated the Administrative Procedure Act (APA) by not acting on the compact. They ruled that her inaction allowed the compact to automatically take effect after the 45-day period. It also rejected claims regarding the compact's legality under the IGRA and other statutes.
Notably, the court found that the compact's wording permits the Seminole tribe to conduct sports betting on its lands and that mobile bets were deemed placed on tribal land, not necessitating online wagering authorization. The court emphasized that its ruling on the APA did not extend to questions of the compact's constitutionality or other state law matters, leaving those issues to the Florida courts.
In addressing claims regarding the Wire Act, the judges concluded that since the compact does not authorize transactions themselves, the argument fell short. Additionally, the requirement for the Seminoles to adhere to the Wire Act was reinforced within the compact. The arguments related to UIGEA and the Fifth Amendment were similarly dismissed as speculative and constitutional, respectively.
