Seminole Tribe And West Flagler End Legal Dispute Over Online Gambling

West Flagler Partners has agreed to drop legal claims against the Seminole Gaming compact in operation in Florida and has agreed not to pursue further litigation action against the Hard Rock owners. In exchange, the Hard Rock app will offer sports betting on Battle Court Jal Alai on its online betting app from early 2025. Hard Rock’s CEO Jim Allen called the agreement “a win-win agreement for the Seminole Tribe and West Flagler”.

Florida Online Betting

Although online poker and casino options are still limited in Florida, with the Hard Rock compact having removed iGaming from the agreement, there are physical poker rooms in the state, including those owned by West Flagler Partners, as well as seven tribal casinos, with all but one of these owned by the Seminole tribe.

Floridians can also use offshore casinos and play with the top poker apps from out of state. According to casino and poker expert Daniel Smyth, these apps are accessible to players from within Florida’s borders and offer extensive bonuses and access to a wide range of games.

Sports Betting Legalized In 2021

Sports betting was also legalized by Gov. Ron DeSantis when he passed the 2021 Gaming Compact. The move also allowed craps and roulette within the state’s physical casinos. Terms for online casinos were removed during the early negotiation process, but the pared-down compact was eventually passed through the legislature. According to its terms, the compact pays the state of Florida $500 million a year with around 10% of this attributed to online sports betting.

Legal Competition

Hard Rock’s sports betting app was launched but only stayed online for a few months before it was temporarily closed down in late 2021 after West Flagler asked the Federal court to determine the legality of the agreement.

Judges ruled in late 2023 that it was legal, however, and the sports book app reopened. On October 27, West Flagler stated that it was dropping its legal battle and would not pursue any further litigation action, while also stating that Hard Rock would start offering coverage of Jal Alai, starting in early 2025.

Legal experts have said that the group had little chance of winning their case and it was surprising to see them proceed for so long while accruing significant legal costs in the process.

The Compact

The original terms of the compact hold, which means the 30-year agreement will run until 2051. It will allow Hard Rock to offer online sports betting and it means that tribal casinos in the state can also offer roulette and baccarat on their premises.

At one time, Jai Alai was a more popular sport for betting in the US than horse racing or greyhound racing. This was especially true in Florida, although it has seen a considerable drop in popularity. It could see a resurgence if betting on the sport proves popular.

State Profits

Hard Rock does not release figures on its handle or revenue in the state, but as part of the compact, it has agreed to pay the state $500 million a year. The terms mean that the Seminole Tribe can offer online sports betting. The servers that deal with the betting must be located on tribal land, but players aged over 21 can place bets from anywhere within the state boundaries.

Hard Rock is also permitted to offer sports wagering from their physical casinos. The agreement is expected to yield $340 million in tax for the fiscal year ending June 30, and financial experts expect it will make the state more than $4.4 billion in its first six years.

Currently, the Hard Rock betting app is the only sportsbook app in the state. Despite this lack of competition, the app was well received with players stating it had competitive odds. Hard Rock has said it welcomes other sports betting operators and would be happy to work with them.

Betting Market Competition

This is a requirement of the terms of the compact, which states they must offer retail betting rights to up to three pari-mutuel betting operators, who would be allowed to partner with any group to offer bets. It is widely believed that Hard Rock remains open to this idea in the hope of having a similar iGaming compact passed.

Online Casinos Next?

DeSantis originally included online casinos in the terms of the compact, but the provision was removed to help get it agreed. Social casinos are available, but these do not offer the same opportunities as real money casinos.

Social casinos effectively operate with dual currencies. Players buy casino coins using real money, spend these coins on casino-like games, and receive any winnings in casino coins. The coins can then be converted to prizes, typically including real cash prizes.

With the cessation of ongoing legal action from West Flagler, the Seminole Tribe is likely  to try and get online casinos legalized and regulated in the state. To expand on the current gambling laws, it would take a state referendum and any proposal would require 60% of the vote to pass.