Peace has finally broken out in the long-running Florida gaming war between the Seminole Indian Tribe and West Flagler Associates.
The two protagonists have put aside a fierce rivalry over who controlled sports betting rights in the Sunshine State–a dispute that went right up to the U.S. Supreme Court–by signing a new strategic partnership that will see the Seminole’s Hard Rock Bet app featuring West Flagler’s flagship Jai Alai content from early next year.
After failing to win multiple lawsuits against the Seminole Tribe, who have extensive gambling and iGaming operating rights in Florida under betting compacts with the state government, West Flagler has finally thrown in the towel and decided to make friends–not war–with the tribal gamesters.
The most recent Florida online sports betting compact was signed by the state’s Republican Governor Ron DeSantis in 2021 — in extension of traditional gambling compacts which allow Indian nations rights to operate casinos on tribal lands.
Exclusive Rights
It gave the Seminole Tribe exclusive rights to operate online sports betting in Florida for 30-years.
This so-called ‘hub-and-spoke’ model legalises and regulates Tribal sportsbooks across the state on the sole proviso that the gaming Internet servers are sited on recognised Indian reservations.
Under the terms of the compact, the Seminole Tribe agreed to pay Florida some US$20 billion (£15.3bn/€18.4bn) in total, including US$2.5 billion (£1.9bn/€2.3bn) within the first five-years of the agreement.
West Flagler Associates–owners of the Magic City Casino in Miami and the Bonita-Fort Myers card room and simulcast facility–challenged the compact, claiming it exceeded the state’s powers and violated Federal Indian Gambling laws.
Following a number of lower state and federal court judgements, in June this year the U.S. Supreme Court’s refused to hear West Flagler’s case and ruled in favour of the Seminole defendants.
Win-Win
Swallowing their pride, West Flagler have now agreed to pay the Seminole Hard Rock platform 60 percent of the revenue from their Jai Alai action.
And as part of the agreement: “The West Flagler Parties have agreed not to bring or support any future legal challenge to the Seminole Tribe’s gaming operations, including mobile gaming offered by the Seminole Tribe now or in the future.”
Commented Hard Rock International Chair and Seminole Gaming CEO Jim Allen: “This is truly a win-win agreement for the Seminole Tribe and West Flagler.
“Rather than engaging in years of additional litigation, this agreement will allow the parties to work together to promote Jai Alai, which has played an important role in Florida’s gaming landscape for nearly 100-years.”
With no limit on the number of products Hard Rock can feature on its app, the Seminole’s model–selling backdoor market access for a substantial chunk of partner revenue–could pave the way for other operators to secure a slice of the Florida action; albeit at a relatively steep cost.
Will other operators pay the price?
Maybe.
Gambling Gods
Florida is home to over 23-million people and 20 professional and NCAA Division 1 sports teams, so it’s a huge market and a hot prospect for major U.S. gambling brands.
At the recent Global Gaming Expo in Las Vegas, Allen hinted that Hard Rock was considering additional partnerships. During the event, for example, he met with sports betting market leaders FanDuel and DraftKings.
FanDuel CEO Amy Howe also recently told investors that Florida, California, and New York states were the company’s new priority states.
The gambling gods, it seems, are shining on Florida.
