Florida Gambling Bill Could Exceed Expectations
Seminole Tribe Guaranteed State $500 Million Annually
When the Seminole Tribe of Florida and the state of Florida signed the existing gaming compact in 2021, the tribe said it would pay the state $500 million a year for the first five years. That projected to be a $2.5 billion windfall for the state. The compact gave the Seminoles exclusive rights to offer sports betting in Florida.
It also allowed the tribe to have like roulette and craps games at its casinos. But early projections are looking as though the Florida gambling deal could be more beneficial to the state. The latest number crunching now has the deal valued at closer to $4.43 billion for the first five years.
Florida’s Revenue Estimating Conference, a group consisting of economists, are estimating the Seminoles will give the state $343.9 million during the current fiscal year, which ends June 30. Sports betting didn’t begin until Nov. 7, so that amount is for less than eight months.
The Seminoles have already given the state $57.78 million in January and $62.24 million in February. But the conference is predicting the Florida gambling deal will bring the state $749.3 million in the 2024-2025 fiscal year, which runs July 1, 2024 through June 30, 2025. Payments to the state are expected to increase and reach $889.6 million by the 2028-2029 fiscal year.
Economists Issue Caveat Regarding Courts
The economists who issued the report did touch upon the uncertainty of continuing payments. Those will be dependent on what happens in the courts. The Florida gambling deal is facing both state and federal lawsuits.
“The (Revenue Estimating) Conference believes that the continuation of these payments is dependent on outcomes in the judicial system that are unknown at this time,” the report said.
The different lawsuits against the compact deal with different aspects. The federal lawsuit primarily deals with the compact and if it adheres to the Indian Gaming Regulatory Act. That lawsuit contends the tribe cannot offer online sports betting Florida because the wagers are not made on tribal land.
If the lawsuit is successful, the Seminoles could still offer sports betting at their casinos. But not through different mobile devices. Since states are seeing nearly 90% of their customers betting picks today being wagered through mobile devices, it could be a costly setback for the tribe and for the state.
The state case involves a gambling amendment that was passed by voters in 2018, called the Voter Approval of Casino Gambling Initiative. The Constitutional amendment was designed by anti-gambling factions to provide voters with the “exclusive right to decide whether to authorize casino gambling in the State of Florida.” But it does not mention sports betting. The state argues sports betting “is not ‘casino gambling’ as that term is defined in the Florida Constitution.”
There will be plenty of sports betting news coming out of Florida in the near future. But in the meantime, it’s business as usual for the Seminole Tribe. They will continue to offer online sports betting as long as they’re allowed to do so. As long as they continue to send money to the state, they will have Florida’s blessing.
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