Florida faces sports betting lawsuit
A New Legal Challenge to Florida’s Online Sports Betting Law
Florida finds itself at the center of a significant legal controversy, as a new lawsuit questions the constitutionality of the state’s online sports betting regulations.
The lawsuit, initiated by Protect The Constitution, LLC, and highlighted by gaming attorney Daniel Wallach, targets the 2021 gaming compact established between the state of Florida and the Seminole Tribe. This compact permits statewide online sports betting via servers located on tribal lands, significantly altering the gambling landscape in the state.
Key Legal Arguments
The plaintiffs contend that this gaming compact violates Amendment 3 of the Florida Constitution, which was overwhelmingly approved by voters in 2018. This amendment explicitly mandates that any expansion of casino gambling outside tribal territories must receive public approval through a referendum. The lawsuit argues that while online sports betting is now accessible to Floridians, the requisite voter consent was never obtained.
According to the complaint, this circumvention of public consent undermines Floridians’ constitutional right to vote on gambling expansions. The plaintiffs assert that the compact, signed in April 2021, granted the Seminole Tribe exclusive rights to operate online sports betting without competitive bidding or input from the public. Following the formalization of this deal by Governor Ron DeSantis and the Florida Legislature in May 2021, a new monopoly on online sports betting was established.
Constitutional Violations
The plaintiffs argue that this development contravenes Article X, Section 30 of the Florida Constitution. This section requires that any new forms of casino gambling—including online sports betting—be approved through a citizen-initiated constitutional amendment. Initially, this amendment was presented as a safeguard to prevent state officials from unilaterally expanding gambling activities.
Protect The Constitution, LLC, a Delaware-based entity, represents the interests of several unnamed Florida businesses which claim to be suffering financial losses due to increased competition from unapproved gambling operations. The businesses allege that they have experienced significant revenue declines directly attributable to the implementation of this compact.
Previous Legal Challenges
This lawsuit is not the first legal challenge aimed at the gaming compact. In 2021, West Flagler Associates and Bonita-Fort Myers Corporation filed a lawsuit claiming violations of both the Indian Gaming Regulatory Act and Amendment 3. Although a federal district court initially ruled in their favor, the U.S. Court of Appeals for the D.C. Circuit overturned that decision in 2023. The U.S. Supreme Court subsequently declined to hear the case in June 2024, effectively endorsing the compact.
Additionally, in March 2024, the Florida Supreme Court dismissed a related case on procedural grounds, yet acknowledged that the compact’s constitutionality remains open to challenge in a circuit court, paving the way for the current lawsuit.
What’s Next?
The outcome of this legal challenge may significantly impact Florida’s gambling landscape, as it raises crucial questions about regulatory practices and citizen rights in the gambling industry. As the case progresses, stakeholders in the sector will be closely monitoring developments, given the profound implications for both operators and consumers.
