Florida's Online Sports Betting Faces Legal Hurdles; DraftKings, FanDuel Risk Being Left Out

Zinger Key Points
  • The state of Florida has the third most people in America, which could make it one of the largest sports betting markets.
  • A look at the lawsuits in Florida over online sports betting and what comes next.
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Sports betting is legalized in over 30 states and consumers are turning out in large numbers for the 2023 NFL season to bet on games and player props.

One of the most populous states has been in limbo over whether online sports betting is legal or not. Here’s the latest.

What Happened: Legalization or the launch of online sports betting in states can often be a big win and catalyst for sportsbook companies, which may explain why a potential upcoming decision in Florida is important.

According to Fox4, a decision over online sports betting in Florida could be coming in the next few weeks. The decision comes on the heels of lawsuits filed by West Flagler Associates.

The lawsuit argues that placing online sports wagers outside of Seminole tribal territories might violate both state and federal regulations. In addition to the state and federal legal challenges, West Flagler has also filed a lawsuit against Florida's Governor, Ron DeSantis.

According to the lawsuit, DeSantis and the state allowed online sports betting to happen without getting proper voter approval. A report from NPR says a 2018 constitutional amendment doesn’t allow gambling outside tribal lands without putting the matter to a vote.

DeSantis has been given until Nov. 1 to submit a reply to the Florida Supreme Court. Additionally, West Flagler has approached the U.S. Supreme Court, seeking a hearing for their case.

Under a ruling from 2021, online sports wagers can be placed in the state through servers on tribal land. Hard Rock Bet, which is owned by the Seminole Tribe, was the first to launch online sports betting in November 2021 before they were forced to halt due to a ruling from a federal judge, according to Action Network.

In June 2023, the U.S. Court of Appeals overturned the ruling from the federal judge and said the Seminole Tribe could offer online betting in Florida.

In August 2023, West Flagler initiated legal actions, pushing back a plan from Hard Rock Bet to re-launch.

Related Link: Exclusive: DraftKings CEO Says We're Seeing Really Strong Trends After Q1 Beat, Guidance Raised 

Why It’s Important: Online sports leaders DraftKings Inc DKNG and Flutter Entertainment PDYPY owned FanDuel have backed some of the lawsuits as they work to secure a share of the market in the state.

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Given the previous decisions and the influence of the Seminole Tribe in the state, companies such as DraftKings and FanDuel would need to negotiate an agreement with the Seminole Tribe, sharing profits in exchange for access to the state's market.

Depending on the rulings on these lawsuits and their timing, bettors in the state of Florida could be allowed to place online wagers with Hard Rock Bet if a re-launch happens, which would likely be welcome news during the NFL and NCAA Football seasons currently underway.

The bad news for Florida residents is if they do get a re-launch of Hard Rock Bet, it might be their only option available.

Read Next: DraftKings Q2 Earnings Highlights: Revenue Beat, EPS Beat, EBITDA Profitability, Guidance Lift And More 

Photo: Shutterstock

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Posted In: Sports BettingGeneralFloridaHard Rock Betonline sports bettingRon DeSantis
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