Seminole Tribe Open to Sharing iGaming Control in Florida
In Florida, the Seminole Indian Tribe rules with an iron fist when it comes to controlling most forms of retail gambling. Though many challenges have arised, the Seminoles currently control the state’s retail casino community. Perhaps the most notable being its Hard Rock Cafe gambling brand.
The Tribe acquired these rights through a compact with the state under the guidelines established with the support of the Indian Gaming Regulatory Act of 1988 (IGRA). The U.S. Department of the Interior largely administers the IGRA in all states to ensure there is consistency and fairness from shore to shore.
Seminoles Gain Control Over Sports Betting in Florida
The strength of the Seminole’s relationship with Florida and Governor Ron DeSantis was recently put to the test. This started in 2021 when Seminole leadership wanted to start offering retail and online sports betting to Florida residents. This had already proved to be a lucrative way to create revenue in other states, which drew the interest of commercial gambling operations like West Flagler.
The ball got rolling when the Tribe and Governor DeSantis signed a new compact, which gave the Seminoles exclusive rights to offer sports betting services. With companies like West Flagler wanting a piece of the sports betting pie, a battle ensued. It took more than 2 years of complaints and legal challenges before finally settling the issue. Today, the Seminoles accept retail and online sports bets through its Hard Rock Bet sports betting platform.
The Prospect of Online Casino Gambling Moves to the Forefront
All of the above information matters because the discussion of online casino gambling or iGaming has moved to the forefront as an important issue. To be clear, the current compact ensures that the Seminoles have complete control over retail casino gambling with no mention of iGaming. Initially, Tribe leadership wanted no part in supporting iGaming with worries related to retail casino operations. Now, things have suddenly changed.
It’s important to note that the original issue related to online sports betting arose because of one key item in the new compact. The compact expressly stated that the Tribe’s gambling operations should reside only on Indian Land. The opposition argued that allowing online gambling violates that clause because most gamblers would not be on Indian land. The Seminoles counter-argued that the location of servers plays a role. The rationale being they reside on Indian land, giving the Tribe full control. The Department of the Interior eventually agreed with Tribal leadership, and thus, SCOTUS decided not to intervene.
A Willingness for Shared Control
Now that the Seminoles are rethinking the iGaming issue, the compact would a revision yet again. A barrier to moving forward came up due to fighting for iGaming control could ignite more legal challenges. Not so fast! There might be hope that Floridians will soon get the legal right to play online casino games from the comforts of home.
In recent comments to the press, Hard Rock International and Seminole Gaming CEO Jim Allen stated that the Tribe might share a piece of the iGaming pie. Of course, his statement came with a caveat. The Seminole leadership could relinquish limited control as long as the Tribe gets to set the terms and conditions of any arrangement.
What Seminole iGaming Control Would Look Like
Two things stand out in Florida. First, it’s a very attractive target for iGaming operators. Consider that the state’s diverse population of 22 million people (and growing). It doesn’t hurt that the per-capita discretionary income among Floridians is higher than in most other U.S. states.
The second certainty is that Floridian gamblers are quite comfortable with the Seminoles having control over various forms of gambling in the state. That notion is fully supported by the vast revenue the Tribe pulls in from its retail casino and sports betting operations. This high level of acceptance ensures resident support for anything the Tribe puts forward.
Allen believes that working with other interests on the iGaming issue would benefit everyone concerned. He feels that if the terms help protect the Tribe’s retail casino gambling interests, it might be a good idea to share the iGaming pie rather than have no pie at all.
Competition is the Key to Success
Of course, the astute Seminole leadership does nothing without an angle that benefits Tribe membership. In this case, Allen is aware that current data shows that having a competitive iGaming market vs. a single-operator iGaming industry creates more revenue. That makes sense given that fickle online gamblers strongly prefer having choices rather than locking themselves into one choice.
A look at the recent Washington, D.C. sports betting market shows the value of competition. Before August 2024, sports betting operations had limited scope, with most activities having to run through the DC Lottery’s partner. In August, the market opened up to 4 licensed sports betting operators that generated $40.6 million in handle, far exceeding any other month on record.
It’s hard to predict what an open Florida iGaming market would look like. Being a reasonable businessperson, Allen knows that while the Tribe can dictate the terms and conditions, they have to leave some meat on the bone for the competition. It would likely boil down to some kind of revenue-sharing deal between the Seminoles and corporate competitors.
Looking Into the Future
As stated above, all of this hinges on the current Indian compact with the state being amended. To date, that process has not started. Based on that, it would appear that late 2025 is the earliest that Floridians might get access to an iGaming option.
Assuming all parties agree to a new compact, a real possibility of legal challenges being filed similar to those for sports betting. It’s complicated, but the Tribe’s willingness to give an inch makes iGaming in Florida a viable possibility in the future.
The Seminoles’ strategic moves keep sports betting exciting, truly showcasing dynamic leadership in Florida! 😊