A lawsuit filed in April by Protect The Constitution, LLC, claims the compact that the Seminole Tribe signed with Gov. Ron DeSantis in 2021 violates state laws. 

The compact allows the tribe to offer online sports betting as part of the Indian Gaming Regulatory Act (IGRA), which allows gambling on tribal lands. According to the agreement, because the servers are on tribal lands, this equates to bets being placed on tribal lands. 

In 2018, however, a constitutional amendment that gave Florida voters a say in any future expansion of gambling was approved.

Residents voted 71% in favor of the amendment, which “ensures that Florida voters shall have the exclusive right to decide whether to authorize casino gambling” in the state. It required a vote through a citizens’ initiative “for casino gambling to be authorized under Florida law.”

The agreement between DeSantis and the Seminole Tribe allows online sports betting through the tribe’s Hard Rock Bet platform. However, this was never put to a public vote.

There is debate over whether this constitutes casino gambling. At the time of the 2018 amendment, online sports betting was not part of the discussions. 

Lawsuit Claims Voters Must Approve Online Sports Betting

The lawsuit filed states that, “Today, online sports betting occurs throughout the state of Florida. But no citizens’ initiative has ever been held to provide authorization. 

“And the people of Florida have never been allowed to exercise their constitutional right to decide whether sports betting should be authorized throughout the state.”

Courts initially ruled against the legality of the 2021 compact, and the Seminole Tribe shut down Hard Rock Sportsbook shortly after its launch.

Federal judge Dabney Friedrich did not endorse the argument that bets were placed on tribal lands because the servers were stored there. He ordered a return to the 2010 compact, which does not authorize online sports betting. 

Courts Previously Sided With Seminole Tribe

In 2023, the US Court of Appeals for the D.C. Circuit reversed the decision made by Friedrich in 2021. It ruled that the compact permitted betting from anywhere as long as servers remain on tribal lands. 

Subsequently, Hard Rock Bet relaunched its sportsbook in November 2023. From that point through May 2024, the sportsbook took in $12 billion in wagers from residents. Florida took in around $357 million in shared revenue over that period. 

The US Supreme Court also refused to hear a case challenging the legality of the compact last year. The court ruled that the lawsuit had filed the wrong type of petition.  

Florida AG Claims Tribal Gaming Exception Applies

The motion to dismiss the lawsuit uses the same arguments from the Supreme Court case last year. It contends that an exception to the 2018 amendment applies, which protects the rights of gambling on tribal lands. 

The amendment states, “nothing herein shall be construed to limit the ability of the state or Native American tribes to negotiate gaming compacts pursuant to the Federal Indian Gaming Regulatory Act for the conduct of casino gambling on tribal lands, or to affect any existing gambling on tribal lands pursuant to compacts executed by the state and Native American tribes pursuant to IGRA.”

The motion to dismiss states that “online sports betting is validly addressed in the 2021 compact, and compacts are exempted from the citizen-initiative process.”

“Casino gambling or not, sports betting was properly authorized by the compact.”

With the precedent set by previous rulings, the chances of success for the lawsuit are estimated to be low. However, this case will go through a more typical legal process in circuit court. The case is assigned to Judge Jonathan Sjostrom in Leon County. 

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The proposals would make it significantly harder for Floridians to amend the constitution and would strengthen the Seminole Tribe’s monopoly. They would also threaten President Trump’s business interests, who has made no secret his desire to open a Florida-based casino. 

Citizen-led amendments require approximately 900,000 signatures, or 8% of the voting population, to be placed on the ballot. The proposed legislation would make it far less likely that that number would be achieved.

Under DeSantis’ proposals, signature collection practices would be far more restricted. Currently, and most commonly, a Floridian could approach someone in the street and ask them to sign a petition, but legislation from DeSantis’ office would make this illegal. 

Currently, signature-gathering companies are set up in places with significant footfall and entice voters to sign petitions. The new system would require individual voters to request, fill out, and return petition forms themselves. Gathering more than two signatures in addition to your own would also become a felony. 

DeSantis argues that such changes are necessary to prevent wealthy special interest groups from influencing the state’s constitution. However, critics see these changes as a direct attack on the democratic process. 

The Seminole Tribe’s Firm Grip on Florida Gambling

Should DeSantis’ proposals be enacted, the gambling industry’s chances of a citizen-led constitutional amendment to broaden legislation would become, at best, remote. Any gambling expansion must secure voter approval through a citizen-initiated constitutional amendment, which would then require 60% approval. 

In 2022, California took to the ballots to vote on gambling expansion in one of the United States of America’s most expensive historical campaigns. Estimates suggest both lobbies spent over $450 million combined trying to influence public opinion. 

If DeSantis’ plan takes effect, getting such an initiative on the ballot would be nigh-on impossible. 

The Seminole Tribe currently holds a monopoly in the state of Florida. The Seminoles operate the only retail casinos in the state and are the sole providers of online sports betting through the Hard Rock Bet brand. 

Despite a prolonged legal battle over sports betting, Hard Rock Bet is operational, and the compact signed with DeSantis in 2021 is conditional on the Seminoles contributing $2.5 billion in payments to the Sunshine State. 

DeSantis and Trump’s issues could resurface

In the run-up to President Trump’s re-election, DeSantis and the President had a bitter feud during the Republican leadership battle. Although the duo have publicly reconciled, the Governor’s proposed legislation could reopen the battle wounds.

Donald Trump has long been interested in establishing a casino in Florida, specifically at his Trump National Doral resort. However, under existing Florida law, voter approval is needed, which may prove a roadblock in Trump’s business plans. 

Daniel Wallach, a lawyer specializing in gambling regulations, told CNN, “The proposal would seal off competition for sports betting and casino gambling in Florida. It’s unprecedented for a state as populous as Florida.” 

He did, however, suggest that Trump’s unique political influence over Floridians could still overcome DeSantis proposals, continuing that it would, “on the surface, make it more difficult for Trump to ever achieve a full Vegas-style gaming resort or brick-and-mortar casino” before adding “he’s one of the few individuals perhaps capable of whipping up that kind of signature support.” 

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Stars of music, film and sports will join Seminole Tribe leaders at the Seminole Hard Rock Hollywood on December 7 to celebrate the expansion of casino gaming in the Sunshine State, which is being dubbed as a ‘new era’ in Florida gaming.

Seminole Tribe of Florida Chair Marcellus Osceola Jr commented: “The Seminole Tribe of Florida is proud to point to a new era in Florida gaming with the unveiling of our new casino games.

“With the addition of craps, roulette and sports betting, we now offer a full complement of casino games and we join the ranks of leading casinos around the world.”

It comes despite an ongoing, lengthy legal battle in the state, with the Seminole Tribe of Florida being dragged into the courts with competitor gaming operator West Flagler over sports betting and the definition of casino gambling. 

While West Flagler is seeking an extension to file a writ of certiorari with the Supreme Court of the United States, action in the Florida Supreme Court could have an influence at federal level.

The state of Florida has filed a response to West Flagler’s action against Gov. Ron DeSantis,  taking aim at the length of time that it took for West Flagler to file at state level, emphasising that the group lacked standing to bring the case to the state Supreme Court.

As the Seminole Tribe continues with its expansion later this week, the argument is not solely limited to sports betting, going into a detailed discussion of what meets the definition of ‘casino gambling’. 

The state suggests that, at the time the compact was signed, sports betting was not “typically found in casinos” and did not meet the definition of gaming outlined in the state constitution. Therefore, it suggests it did not violate the Florida constitution by not taking the compact to the voters for approval.

Whilst the dispute won’t halt the progression of the Seminole Tribe in Florida for now, West Flagler has until Dec. 21 to file a response brief. In the meantime, the SCOTUS has granted West Flagler an extension to file a writ of certiorari until Feb. 8 to give time for the state case to reach a conclusion.

Commenting on the tribe’s upcoming event, Seminole Gaming CEO and Hard Rock International CEO, Jim Allen, underlined the positive impact that this celebration can have in Florida, stating: “The entertainment, travel and tourism industries, and many more, will see the positive economic impact caused by the new casino games.

“They will increase tourism to Florida and boost employment not only at Seminole Hard Rock Hollywood but also at businesses in the areas surrounding this casino complex and others operated by Seminole Gaming throughout Florida.”

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Earlier this week, Friedrich dismissed the argument that sports betting was occurring on tribal grounds because of the location of the server taking those bets, and subsequently ordered the 30-year gaming compact to revert back to its 2010 version. 

The outcome of the appeal resulted in the court finding the tribe “does not satisfy the requirements for the ‘extraordinary remedy’ of a stay” and noted that it failed to show the court’s decision will cause it “irreparable harm”.

Moreover, the tribe cannot show an injury to its sovereign immunity because “this case does not implicate that immunity”.

In addition, the court read that although the tribe has a substantial economic interest in the instant compact “economic loss does not, in and of itself, constitute irreparable harm”.

On the appeal, the tribe argued a “serious legal question” on whether the plaintiffs could “conduct an end run around the tribe’s immunity by filing suit against the United States” by citing a previous case, which was challenged, that the DC Circuit found to be reviewable in Amador County.

Yet the court insisted that it is “straightforward that challenging federal agency action under the Administrative Procedure Act does not implicate the tribe’s sovereign immunity. 

Additionally, the tribe argued that its motion “raises a serious question” due to the court’s alleged “opinion conflicts with PPI”.

On this matter, the court insisted it “takes more than judicial disagreement to warrant a stay” and noted that PPI “both misstated the role of sovereign immunity” and “failed to address a strange consequence of its holding: that the secretary’s approval of gaming compacts would ‘never be subject to judicial review because the nonjoinder of a tribe [would] always require dismissal’”.

Further reiterating its argument, the court stated that the tribe has “thus failed to identify a serious legal question” which it states is a sufficient basis for denying a stay. 

The denial of Seminole’s appeal follows on from the tribes’ recent defiance of the original court ruling and continuing to take online sports bets, citing that the community would be “irreparably injured” if it were to cease operations pending the appeal outcome. 

In a statement to the courts, Marcellus William Osceola Jr, chair of the tribe, responded to the Federal Court’s ruling that deemed Florida’s sports betting law – which gave the Seminole Tribe a de facto monopoly – in violation of  federal Indian Gaming Law, instantly rendering sports betting illegal once again in the Sunshine State. 

Osceola Jr. stated that, if it was not permitted to operate under the 2021 compact during an appeal, the state of Florida would “lose tens of millions [dollars] per month” in revenue sharing payments from tribes. 

“The tribe’s online sports betting authorised by the compact is now in operation, and is generating millions in revenue per week,’’ explained Osceola Jr.

“The tribe is using these funds to pay back the development costs for its online sportsbook, make revenue-sharing payments to the state and fund important tribal programmes. 

“The tribe would immediately lose the millions in online sports betting revenues the tribe is generating. As a result, many of these jobs and outsourced positions would be lost.”

Since November 1, citizens of Florida had been allowed to bet and following the ruling by Friedrich, will no longer be able to do so. Moreover, it will further stop Seminole casinos offering roulette and craps to customers at venues, which Osceola Jr stated the tribe spent “hundreds of thousands of dollars” to implement from August 11, 2021 when the compact took effect, and leaves a $2.5bn hole in the state’s funding plans. 

In her judgement, Freidrich wrote: “Although the Compact ‘deem[s]’ all sports betting to occur at the location of the tribe’s ‘sports book[s]’ and supporting servers… this court cannot accept that fiction.

“When a federal statute authorises an activity only at specific locations, parties may not evade that limitation by ‘deeming’ their activity to occur where it, as a factual matter, does not.”

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In a statement to the courts, Marcellus William Osceola Jr, chair of the tribe, responded to the Federal Court’s ruling that deemed Florida’s sports betting law – which gave the Seminole Tribe a de facto monopoly – violates federal Indian Gaming Law, instantly rendering sports betting illegal once again in the Sunshine State. 

Osceola Jr stated that, if it was not permitted to operate under the 2021 compact during an appeal, the state of Florida would “lose tens of millions [dollars] per month” in revenue sharing payments from tribe. 

“The tribe’s online sports betting authorised by the compact is now in operation, and is generating millions in revenue per week,’’ explained Osceola Jr.

“The tribe is using these funds to pay back the development costs for its online sportsbook, make revenue-sharing payments to the state and fund important tribal programmes. 

“The tribe would immediately lose the millions in online sports betting revenues the tribe is generating. As a result, many of these jobs and outsourced positions would be lost.”

Dismissing the argument that sports betting was occurring on tribal grounds because of the location of the server taking those bets, judge Dabney Friedrich ordered the 30-year gaming compact to be reverted back to its 2010 version. 

Since November 1, citizens of Florida had been allowed to bet and following the ruling by Friedrich, will no longer be able to do so. Moreover, it will further stop Seminole casinos offering roulette and craps to customers at venues, which Osceola Jr stated the tribe spent “hundreds of thousands of dollars” to implement from August 11, 2021 when the compact took effect, and leaves a $2.5bn hole in the state’s funding plans. 

In her judgement, Freidrich wrote: “Although the Compact ‘deem[s]’ all sports betting to occur at the location of the tribe’s ‘sports book[s]’ and supporting servers… this court cannot accept that fiction.

“When a federal statute authorises an activity only at specific locations, parties may not evade that limitation by ‘deeming’ their activity to occur where it, as a factual matter, does not.”

Freidrich said that the state was welcome to come to a new compact with tribal leaders, so long as it did not violate federal law. Any expansion of gambling activities outside a tribal compact would require voter approval, something that FanDuel and DraftKings are already working towards. 

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Four

Just four months after entering into partnership, MGM Resorts and GVC Holdings have signed up Sportradar as the exclusive supplier of US sports data for its joint enterprise.

Striving to create the US leader in the sports betting and online gaming sectors, MGM GVC Interactive has recruited Sportradar for the provision of sports betting data from certain US sports leagues, which the company itself has the right to distribute.

Adam Greenblatt, MGM GVC Interactive’s CEO, commented, “We have a clear and simple objective; to provide our US customers with the best and broadest range of betting products in the market. Sportradar is a great partner to help us get there, enabling us to offer a huge spectrum of US sports events while leveraging off our global portfolio.”

Adding to a plethora of current agreements, which already encapsulates US heavyweights the NBA, NFL, NHL and NASCAR, Neale Deeley, vice president of gaming sales for Sportradar, added: “MGM and GVC are leaders in the sports betting landscape, and we are proud to be their provider for US sports data.

“We have been preparing for the opening of the US market for some time now, with an across the board ramp up of our US sports betting offering, and we are delighted with this endorsement from MGM and GVC that all the hard work is delivering what world class betting operators are looking for.”

€1m

The Microgaming Poker Network’s Universal Championship of Poker saw Mateusz Moolhuizen become the fourth player to claim the title, and take home the €1m guaranteed prize pot.

Spanning 88 events and in excess of 360 satellite tournaments, this years offering was the MPN’s largest to date, with the Betsson player claiming top spot after collecting a total of 2779.48 points.

Alex Scott, Managing Director of Poker at Microgaming, stated: “This year’s tournament series was the biggest and most thrilling we’ve had yet, building on last year’s event with an impressive €1 million guaranteed. Congratulations to Mateusz on taking the coveted title as the Greatest Poker Player in the Universe!”

A regular at the MPN Poker Tour, Mateusz’s previous achievements includes €3,000 in cash and two MPN Poker Tour packages, each of which featured entry into the main event and one side event, in addition to accommodation and travel expenses.

Mateusz also took the 8th spot of the final table at the MPN Poker Tour at the Battle of Malta Main Event for €30,000.

Moolhuizen added: “UCOP has made poker very exciting for me this year, every all in was an exhilarating experience and climbing the leaderboards added another layer of anticipation. Most of all, the event was a good excuse to skip some time with my parents in law!”

$105bn

In a recent study the American Gaming Association revealed that tribal gaming contributed $105bn in output across the US in 2016, the year from which the most current data is currently available.

Undergoing significant growth from a $121m segment of the country’s gaming industry in 1998, via the introduction of the Indian Gaming Regulatory Act, tribal gaming also employs some 676,000 individuals who are paid a combined $36bn in wages, whilst a further $15bn is issued in taxes and revenue share payments to federal, state and local governments.

California was proven to be by far the largest and most dominant tribal gaming state, trailed by Oklahoma and Florida.

“Tribal gaming operators are present in 28 states and create nearly half of all US gaming revenue,” said Sara Slane, senior vice president of public affairs for the AGA. “This report details the widespread economic impact that tribal casinos have in states across the country, providing diverse career opportunities, supporting local businesses and generating tax revenue and revenue share payments for all levels of government.”

25 per cent

Shares in gaming technology firm Scientific Games leapt over 25 per cent, when the company’s Q3 financial results exceeded expectations laid forth by analysts.

SG shares climbed by more than a quarter, closing on $26.74, on the news that like-for-like losses were better than anticipated, with an “adjusted loss” of $0.14 per share for the three months to September 30, less than the $0.18 loss predicted.

Revenue was up seven per cent in Q3, to $821m, including $46.5m from NYX, along with growth in SG’s lottery and social businesses.

Net loss was $351.6m compared to $59.3m in the corresponding period in 2017, thanks mostly to a hefty $338.7m bill for restructuring and other charges, including $309.6m in relation to the verdict in the Shuffle Tech legal matter – an antitrust lawsuit relating to patent infringement.

Barry Cottle, CEO and president of SG, stated: “We are very pleased with the growth we are seeing across our businesses as we continue to lead our industry into the future.”

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Hard Rock International has strengthen its global CSR initiative, after announcing the appointment of Paul Pellizzari as vice president of global social responsibility.

In his new role Pellizzari is to hold overall accountability for the growing entertainment brand’s social responsibility programmes, initiatives and strategies, building upon work undertaken in his previous position at the Ontario Lottery and Gaming Corporation.

During time spent at the OLGC a “global leadership position” was developed, including building and leading the organisation’s responsible gaming programme, which subsequently was named “Best Overall Responsible Gaming Program in the World” by the World Lottery Association in 2014, before scooping 16 other national and international awards.

Prior to leading social responsibility for the OLG, Pellizzari led a research consulting practice at EthicScan Canada, developed social purpose marketing strategies for J. Walter Thompson and worked in corporate communications for Noranda Inc.

Pellizzari has written two books, in addition to dozens of articles featuring in a range of publications, focusing on the topics of corporate social responsibility.

Jeff Hook, executive vice president of development and marketing at Hard Rock International, said of the new appointment: “It is a pleasure to welcome Paul to our Hard Rock family. Paul’s expertise and background will help contribute to the strength and development of the brand, as we strive every day to live out our brand mottos of Love All – Serve All, All is One, Take Time to be Kind and Save the Planet.”

HRI has also revealed that tournament poker is to return to its Seminole Hard Rock Hotel & Casino property in Hollywood, Florida, from November 14 – 28, with the Seminole Hard Rock Rock ‘N’ Roll Poker Open.

Addressing the series, Seminole Hard Rock Tournament Director Tony Burns explained: “Year in and year out, the Rock ‘N’ Roll Poker Open has been one of our best poker series. Never was this more apparent than in 2016 when the series-opening $360 buy-in, $1 million guarantee drew more than 5,000 entries making it the largest poker tournament in state history.

“That benchmark stands to this day, and we’re eager to get cards in the air for this year’s series, which sees us partner with the World Poker Tour to bring the South Florida market a $3,500 buy-in, $2 million guarantee championship.”

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In the role Guidry is to be responsible for all operations and management of the integrated resort, that is set to debut its $1.5bn expansion on Thursday 24 October, replacing Auggie Cipollini, who has been promoted to the position of president of Seminole Hard Rock support services.

Most recently Guidry was senior vice president and general manager of the Caesars Entertainment Corporation owned Horseshoe Casino Council Bluffs and Harrah’s Council Bluffs, both located in the same Iowa city and boasting a combined 1,200 workforce.

Managing the two entities for ten years Guidry was responsible for strategic direction and daily operations, at a time when he also managed Mid-America Center, an arena and convention centre complex, for the city of Council Bluffs. 

Further experience came as vice president of operations and assistant general manager for what was then Harrah’s Casino St Louis, located in Maryland Heights, Missouri, where he also held the position of vice president of casino operations and vice president of food, beverage and hotel operations, as well in various departments across Atlantic City, New Jersey, Lake Tahoe and Nevada, including the Hard Rock Hotel and Casino Las Vegas.

Seminole Hard Rock Hotel and Casino Hollywood is to feature the world’s first guitar hotel and casino complex, which stretches 450 feet into the air.

Boasting 1,271 guest suites and six illuminated guitar strings on each side of the tower, the integrated resort is to also contain an expanded casino floor of 195,000 square feet that includes more than 200 table games.

Furthermore, 3,100 of the latest slot machines and a new 45-table poker room are to also be included, as well as a high limit slots room, non-smoking slots room, and the exclusive Plum Lounge, an upscale enclave featuring a variety of VIP experiences for Seminole Hard Rock’s high-end players.

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The Florida headquartered gaming and hospitality firm, alongside Tri-Peaks Entertainment Group, joins The Gulfside Casino Partnership, the Cherokee Nation of Oklahoma, Robert and Ruth Kehl and the Choctaw Nation, as competition for the Pope County licence hots up.

The Arkansas Racing Commission also received one application for a casino in Jefferson County, from the Downstream Development Authority, with the regulator set to consider all six applications on June 13.

Jurisdictional amendment allowed four casino licenses, two for gaming operations at the existing Oaklawn Racing Casino Resort in Hot Springs and Southland Casino Racing in West Memphis, and two for the development of new gaming properties in Pope and Jefferson Counties

Partnering with Warner Gaming the two companies plan to build a Hard Rock-branded property in the region, with both parties having a long partnership, with Warner Gaming managing the Hard Rock Hotel and Casino in Las Vegas, as well as opening its Sioux City establishment five year ago.

The first phase of the plan is estimated to cost $230m, and if successful would see construction of a resort that will include a 300-room hotel and a 44,450-square-foot casino with 1,150 gaming machines, 28 table games, a poker room, a sports betting facility and a mobile betting operation.

Furthermore, the development would also feature a Bo Jackson 20-acre sports facility which will see an increased investment in youth sports, in addition to an RV park, 26,000 square feet of convention space and an 8,000-person outdoor amphitheatre.

Bill Warner, president and CEO of Warner Gaming, commented: “Our team is excited to bring this amenity to the local community as part of our overall resort destination proposal for Hard Rock Arkansas.

“We believe it will be a place for families to enjoy sports, be active, and spend time together and are proud to be able to provide the community what it wants.”

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Seeing a group revenue rise of 12.6 per cent reach $73m (2018: $64.8m), it was the 13.7 per cent boost within EGM’s that contributed the lion’s share of $69.6m, as contrasted to the previous year’s $61.2m.

AGS stressed that the primary factor responsible for this boost is “sold units in early-entry markets such as Michigan, Saskatchewan, Pennsylvania and Massachusetts, as well as continued penetration into ramping markets such as Florida and California in addition to the contribution of leased EGMs acquired from Integrity Gaming”.

Table products saw a 29.1 per cent rise to $2.1m ($1.6m), however AGS’ interactive segment fell 36.2 per cent to finished on $1.2m (2018: $1.9m) for the period.

Total adjusted EBITDA increased five per cent to $36.3m, driven by the increase in revenue, offset by increased adjusted operating expenses, primarily due to headcount related costs in SG&A and R&D, as well as an additional $1m of operating costs from igaming.

David Lopez, AGS’ chief executive officer, explained on the Q1 performance: “I’m pleased to report another solid quarter of growth for AGS, with total revenue of $73m up 13 per cent year-over-year, driven by double-digit gains in EGMs and tables.

“Sold EGM units grew 22 per cent year-over-year and our tables products segment reported its strongest quarter to date, driven by our award-winning progressive platforms. Our EGM recurring revenue installed base grew 14 per cent year-over-year to 27,308 units, driven by the inclusion of 2,500 EGMs from the Integrity acquisition, which we closed in February of this year.

“With numerous levers to build momentum — including strategic investments in R&D to continue building a strong, diversified, and expanded product portfolio, as well as many new and underpenetrated domestic and international markets — AGS is well-positioned for continued long-term, meaningful growth.”

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