With New Seminole Compact Signed, Florida Legal Sports Betting Becoming a Reality?
The idea of legal sports betting in the state of Florida has seen facing more than its share of headwinds the last couple of years but perhaps the biggest has reportedly been removed on the Sunshine State's path to legalization.
It was announced Friday that Governor Ron DeSantis has reached a gaming agreement with the Seminole Tribe of Florida that includes sports betting. The agreement not only paves the way for a possible legal sports betting platform later this year, but it also has acted as a relationship-builder between the state of Florida and the Seminole Tribe.
“Today, after months of negotiations, Governor DeSantis and the Seminole Tribe of Florida executed a historic new thirty-year gaming Compact that restores the State’s relationship with the Tribe, preserves and offers new opportunities for Florida’s legacy pari-mutuel industry, and provides substantial new revenues for the State of Florida,” said Florida Senator Wilton Simpson.
Win-win
It took a while, but Governor DeSantis has set up a situation that seems acceptable to both parties involved. The Seminole Tribe gets the opportunity to dramatically expand their legal sports offerings and the state of Florida gets a chance to bring on a legal sports betting platform and the financial benefits that accompanies it.
The Seminole Tribe gains exclusive control over sports betting in the state. Pari-mutuel operators, with which there are 35 currently operating in Florida will be allowed to run mobile betting platforms with a percentage of their profits going to the Tribe. Servers for those operators will have to be situated on Tribal lands.
The new compact will pave the way for ten casino sportsbooks to go along with a more lucrative mobile sports betting platform. Retail facilities will be able to operate under the Seminole Tribe umbrella with a 100-mile radius of exclusivity provision. It gives the Tribe a 100-mile buffer with any other sportsbook that hopes to operate in the state.
Betting will be permitted on all professional, college and Olympic sports, although prop bets on college sports will not be allowed.
The Seminole Tribe also gains the opportunity to add craps and roulette to their betting menu. Off of gross gaming revenues, 55% of all gaming profits will go to the Seminoles.
What It All Means
Florida has long been viewed as one of the longer shots among the most populous states in the US to launch a legal sports betting platform. Florida ranks third in terms of population in the US with 21.5 million residents, making it the biggest state so far to potentially welcome sports betting.
“This historic compact expands economic opportunity, tourism and recreation, and bolsters the fiscal success of our state in one fell swoop for the benefit of all Floridians and Seminoles alike,” DeSantis said
in a statement. “Our agreement establishes the framework to generate billions in new revenue and untold waves of positive economic impact.”
The new gaming breakthrough will set in motion a reported $2.5 billion revenue sharing deal between the Seminole Tribe and the state of Florida. It is estimated that up to $6 billion in revenue for the state will be the result of the 30-year deal.
The Next Steps
With the DeSantis/Seminole Tribe negotiations seemingly over with, the plans will now have to be approved by the state's legislature which adjourns April 30. Because time is tight and it is unlikely something gets done within that timeframe, the Florida Senate has agreed on a special session that will take place the week of May 17 in order to debate and hopefully officially make the new 2021 Compact law.
“In order to take effect, the new Compact will need to be ratified by the Legislature. While many of these provisions have been discussed for the last several years, I recognize that with a week left in the Regular Session, we are running short on time. Therefore, in an effort to provide the opportunity for a more thorough vetting of these important issues, Speaker Sprowls and I have agreed to convene in a Special Session the week of May 17, 2021. It is my expectation that the 2021 Regular Session will conclude as scheduled on Friday, April 30,” said Senator Wilton Simpson in a public statement Friday.
Upon approval in the legislature, the new compact will be heard by the U.S. Secretary of the Interior, as mandated in the Federal Indian Gaming Regulatory Act within 45 days. It is widely expected to sail through that process.
The Timeframe
It is hoped that the special session of the Senate will result in the new Compact being passed in May with an eye on the start of the NFL season as the official launch of the Florida legal sports betting industry. The NFL season always seems to be the target date for the launch of any news sports betting jurisdiction and is certainly a good motivator.
There is still work to be done including language around skins and tax rate. That said, the biggest step looks to have been taken with the Compact negotiations.
So, bettors in Florida may be able to place their first legal sports bet this fall, and education programs, health care and infrastructure projects may finally get a financial boost from long-overdue legislation allowing for legal wagering.
