The State of Legalized Sports Betting in Florida

The topic of legal sports betting in the state of Florida has been a complicated one. One of the "three big fish" left without a legal sports betting platform, Florida's situation seems even more in flux than California — which will vote on a measure on the 2022 election ballot — and Texas, which has also shown signs of legal sports betting momentum.

Currently, there are 30 states, plus Washington D.C. that have thriving legal sports betting platforms in their state, contributing to "fan engagement" as well as tax revenue for needy state and local coffers. 32 states have officially legalized and three have yet to go live just yet.

Florida seems to be far off joining that list of legal sports betting states. The subject continues to be stuck in the mud with little immediate resolution on the horizon. Let’s break down the latest news.

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Recent Background

Florida could be poised to become America's third-largest legal sports betting market with a population of around 21.5 million and an estimated 120 million tourists annually. The state has iconic teams in all four of North America's major professional sports leagues, all of which are in favor of some sort of legal sports betting platform for their state.

It was back in May 2021 that the possibility of legal sports betting in Florida really picked up. It was at that time that Governor Ron DeSantis announced that he had renegotiated a compact with the Seminole tribe that would dramatically expand the legal gambling footprint for the tribe and ultimately the state.

Traditional tribal compacts state that all gambling in the state of Florida must be on tribal lands. It looked back in 2021 as though legal sports betting would soon become a reality in conjunction with the state’s tribes thanks to the new compact. In fact, in November 2021, one of Florida's tribal entities, in partnership with the Hard Rock Sportsbook app actually launched a legal mobile sports betting platform.

The Seminoles had been using an unofficial "hub and spoke" precedent in which servers being located on tribal lands could theoretically mean that mobile wagering across the state would be taking place on their territory, similar to how New Jersey's mobile sports betting servers are all located in Atlantic City.

Their efforts were quashed when Judge Dabney Friedrich ruled that the previously negotiated compact violated the state constitution and federal Indian Gaming Regulations Act. The judge didn't buy the "hub and spoke" model the Seminoles and Hard Rock were selling.

Then, a group of heavyweight sport betting operators including DraftKings and FanDuel teamed up and committed $37 million to get the question of legal sports betting on the 2022 election ballot. But their efforts fell short when not enough signatures were generated for the petition.

Opportunities Missed

Florida is a sports-crazed state. Every one of those major pro sports teams supports legal sports betting and sees it as a way to generate more revenue for themselves.

The massive tourism sector in Florida also makes legal sports betting a natural fit. For the tourism industry, sports betting represents one more place to spend their money. In turn, those tourists would be indirectly contributing to tax revenue, something that theoretically should be welcomed by not only citizens of the Sunshine State but also lawmakers that are facing increasing pressure on funding projects during this time of economic downturn.

And then there is the geographical aspect of a potential Florida legal sports betting push. There are no other states around them close to legalizing sports betting. Georgia and Alabama seem years away from the legalization of a sports betting platform, and Mississippi has a small, retail-only sports betting platform.

Florida is in a position to not only benefit from bettors from their own state but also from cross-state sports fans hoping to place a wager on their favorite team.

Where Does This Leave Us

There has been a little bit of momentum toward the legalization of sports betting in Florida. But any quick resolution isn't expected. The U.S. Court of Appeals for the District of Columbia will see the Seminole/Hard Rock case argued before it, but it will take some time.

Written arguments are expected to wrap up in November in Florida. Oral arguments have yet to be set up.

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At the end of the day, it means that legal sports betting won't become a reality until at least 2023. Some analysts are predicting that 2024 or 2025 is a more likely scenario.

Daily Fantasy Sports (DFS) and PrizePicks, which allow for player props and over/under wagers are already allowed in the Sunshine State. It seems past due that they finally pave the way for a broad, legal sports betting platform.

Unfortunately for Florida legal sports bettors, they are forced to wait on the subject of legal sports wagering for their state.

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