Hard Rock Bet Again Blocked From Launching in Florida
The complicated and convoluted Florida sports betting situation heard arguments before the U.S. Supreme Court last Thursday, and it appears we're no closer to seeing the Seminole Tribe of Florida launch its Hard Rock Bet mobile sports betting brand in the best sportsbooks.
The U.S. Supreme Court imposed an important stay Thursday. It followed a U.S. Circuit Court of Appeals for the District of Columbia decision that upheld a gambling compact between the state and the Seminole Tribe, which ultimately paved the way for the launch of mobile sports betting this past summer that included the best sports betting apps.
“Upon consideration of the application of counsel for the applicants, it is ordered that the mandate of the United States Court of Appeals for the District of Columbia Circuit, case No. 21-5265 (consolidated with 22-5022), is hereby recalled and stayed pending further order of the undersigned or of the Court. It is further ordered that a response to the application be filed on or before Wednesday, Oct. 18, 2023 by 5 p.m. ET,” Chief Justice John Roberts' order read.
The ruling puts on hold the opportunity for the Seminoles, based on a compact they signed with Gov. Rom DeSantis in 2021, to launch and regulate a legal mobile sports betting industry in the Sunshine Stat, at least for now.
The ruling
Chief Justice John Roberts' order essentially allows pari-mutuel companies West Flagler Associates and Bonita-Fort Myers Corp., owners of Magic City Casino and Bonita Springs Card Room, a bit more time to fight what is a wagering-industry monopoly in the state.
The pari-mutuel casino owners were asking for a stay while they assembled their arguments against the negotiated $2.5 billion compact between the state and the tribe. The Supreme Court was asked to intervene after a U.S. Circuit Court of Appeals struck down an attempt by the pari-mutuels for a rehearing on the case.
Thursday’s stay will be in place while the full court considers a potential long-term stay, one that could keep Hard Rock Bet on the shelf for an indefinite amount of time.
The issue
The pari-mutuels in the Florida case are arguing that the compact signed between the Seminole Tribe and the state circumvents the need for a constitutional amendment and ultimate voter approval for casino gaming. The suit also claims that the compact violated the federal Indian Gaming Regulatory Act, which stipulates that gambling must take place on tribal lands.
It calls into question the validity of a widespread Seminole mobile sports betting platform throughout the state, as obviously all mobile sports betting wouldn’t be taking place on tribal lands. The Seminoles have argued that just having servers for their mobile platform on their lands would suffice. The renegotiated compact is working off a “hub-and-spoke model."
“The circuit (appeals court) opinion raises a question of nationwide importance regarding the ability of states and tribes to use IGRA [Indian Gaming Regulatory Act] compacts to provide for gaming off Indian lands,” the request said.
The Department of the Interior, which approved the Seminole compact in Florida, gets until Oct 18 to respond. After that, we'll get a ruling from the court on if the stay is to remain in place.
Now what?
The Florida legal sports betting industry remains in limbo. No Florida sports betting apps will go live until the issue before the courts is settled. There have been many challenges already and seemingly more to come.
The Supreme Court stay ruling doesn’t give us any sense of which side the Court will lean once an inevitable case from West Flager is filed. West Flager Associates hasn’t officially filed a case before the Supreme Court on the issue, but they promise to do so by Nov. 20.
So far, the firm has just requested a stay in the matter.
The Seminoles, for their part, look as if they're going to abide by the stay and hold off on launching their Hard Rock Bet brand for now. The tribe already launched a mobile brand in Florida, only to be forced through court action to shutter their businesses. The brand was active for 34 days in November 2021 before shutting down.
So, Week 6 of the bread-and-butter NFL season is upon us. Right now 21.5-million Florida residents, and the numerous pro sports teams that call Florida home, are forced to wait again for legal sports betting. It continues to be one step forward, and one step back for the Florida scene, and that will likely continue for the near future at least.
