The Seminole Tribe has taken legal action against DraftKings and its CEO Jason Robins, filing a lawsuit on October 8 in Broward County Circuit Court. The 72-page complaint accuses DraftKings of operating an unlawful sports betting business in Florida and engaging in marketing tactics aimed at state residents. The tribe alleges that both DraftKings Inc. and its subsidiary GUS III LLC, which operates DraftKings Predictions, are conducting activities that constitute sports wagering, thereby violating state laws as well as the Indian Gaming Regulatory Act (IGRA).
The Seminole Tribe is governed by a tribal-state gaming compact that grants it exclusive rights to conduct online sports betting in Florida, with its Hard Rock Bet being the only legally sanctioned online sports betting platform in the state. The lawsuit asserts, "Florida has decided that legal sports betting should be conducted through a single, accountable, trustworthy, and heavily regulated operator, and it selected the Tribe, not DraftKings, as the steward of its policy."
The complaint details DraftKings' use of a "super app" that aggregates various gaming products available in different states. While the app offers licensed sportsbook and casino products in some states, in others where it lacks regulatory approval, it provides alternatives like sports prediction markets. The Tribe's legal team argues that this app constitutes an "illegal sportsbook" violating existing state law and the tribe’s compact, ultimately depriving Florida of necessary tax revenue and state oversight.
DraftKings has faced scrutiny over how its app mirrors wagering categories such as moneylines, point spreads, and parlay bets. The tribe cites statements made by Robins, including indications that the company intended to customize its products for states lacking legal sports betting and that DraftKings would not deploy its prediction markets in states where it held an operator's license to maintain positive relations with regulatory bodies.
The lawsuit reads, "In deciding where to launch its Illegal Sports Gambling Offerings around the country, Robins specifically directed DraftKings to focus on ‘states that do not have legal online sports betting.' Of course, Florida does have legal, regulated online sports betting; Defendants are simply not entitled to offer a sportsbook under Florida law."
Robins had previously expressed that DraftKings would avoid launching sports prediction markets in states where it held licenses to ensure compliance with regulations. In contrast, the Tribe argues that DraftKings continues to undermine both Florida law and their tribal compact.
In response to the lawsuit, DraftKings stated its belief that its offerings in Florida comply with legal standards. "DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act," said Stephen Miraglia, Senior Director of Communications.
The lawsuit emphasizes DraftKings' marketing campaigns that appear to permit access to sports betting across Florida, contradicting their claim that their betting operations are legal. The Tribe highlights advertisements promoting "DraftKings Sports" as "Now Live in Florida!" despite the company not being authorized to conduct regulated sports betting in the state.
The lawsuit also points out that DraftKings committed more than $20 million towards a failed 2021 ballot initiative, in partnership with FanDuel, to broaden sports betting access in Florida. The Tribe labeled that initiative as a "political Hail Mary." Furthermore, the Tribe alleges that DraftKings has covertly funded lawsuits designed to threaten the tribal-state gaming compact, an effort described in the suit as an assault on Florida’s established gaming laws.
The Tribe seeks several outcomes from the court, including a ruling that DraftKings' Pick6 and Super App sports offerings violate Florida law, an injunction preventing the company from operating its sports betting products in the state, and the return of all profits derived from these activities for distribution towards consumer protection and problem gambling recovery programs.
This legal confrontation occurs against the backdrop of Florida officials reinforcing their commitment to maintaining the Seminole Tribe's exclusive rights. Attorney General James Uthmeier has initiated state court actions against other gaming operators that are suspected of violating state gaming laws, sending cease-and-desist letters to operators in the daily fantasy sports sector earlier this year and proposing legislative measures aimed at solidifying the Tribe’s gaming authority.
