Seminole Tribe Sues DraftKings For Alleged Illegal Florida Sports Betting
By Robert Linnehan in Industry
Published:
- The Seminole Tribe today filed a lawsuit against DraftKings in Broward Circuit Court
- Lawsuit alleges DraftKings engages in alleged illegal sports betting in Florida
- Seminole Tribe points to exclusive Hard Rock Bet sports betting rights in Florida’s approved gaming compact
The Seminole Tribe today filed a lawsuit against DraftKings to protect its Florida sports betting sovereignty.
The Seminole Tribe filed its lawsuit in Broward Circuit Court, alleging DraftKings offers illegal, unlicensed sports betting in the state. The Seminole Tribe points to DraftKings Pick6 daily fantasy sports game and sports event contract offerings, both currently live in the state, as threats to its legal Hard Rock Bet platform.
“These Illegal Sports Gambling Offerings functionally replicate the sportsbook that DraftKings offers in States where sports betting is legal and DraftKings is licensed. That is by design: in deciding where to launch its Illegal Sports Gambling Offerings around the country, (Jason) Robins specifically directed DraftKings to focus on ‘states that do not have legal online sports betting.’ Of course, Florida does have legal, regulated online sports betting; Defendants are simply not entitled to offer a sportsbook under Florida law,” Counsel wrote on behalf of the Seminole Tribe.
Exclusive Sports Betting Rights Threatened
The Seminole Tribe’s filed lawsuit points to its 2021 approved gaming compact with Florida. The gaming compact effectively legalized Florida online sports betting for the tribe and its sports betting platform, Hard Rock Bet.
The approved 30-year Florida gaming compact allows exclusive Seminole Tribe-operated in-person and online sports betting in the state. It also allows Seminole Tribe casinos to offer roulette and craps, and allows the expansion of tribal casinos at several locations.
In exchange, the Seminole Tribe makes annual payments of at least $500 million a year to the state. This likely will bring in more than $6 billion to the Sunshine State through 2051.
“In exchange for implementing these comprehensive safeguards and substantial revenue-share payments, the Tribe receives the exclusive right to offer online sports betting throughout the State of Florida,” the tribe noted in its lawsuit.
However, DraftKings Pick6 DFS offerings and its sports event contracts, located on its Super App, threatens tribal sovereignty over sports betting in Florida. DraftKings conduct is “an affront to the rule of law, is worsening by the day, and threatens the entire framework Florida has established to protect consumers,” the tribe wrote.
DraftKings Pick6 is advertised as a peer-to-peer fantasy sports game.
The lawsuit requests the court find DraftKing’s Pick6 and sports betting on its Super App sportsbook constitute illegal gambling under Florida law, requests any and all injunctive relief including an injunction barring the offerings from the state, restitution and disgorgement of all profits from its alleged illegal offerings, and any additional relief the court deems.”
Sport & State posted a copy of the Seminole Tribe lawsuit against DraftKings, which can be viewed below.
DraftKings Defends Offerings
A DraftKings spokesperson defended the company’s offerings in Florida to Sports Betting Dime.
“DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act. Furthermore, DraftKings Pick6 is a peer-to-peer fantasy sports variant centered on a simple ‘more or less’ mechanic tied to individual athletes performance metric and is not sports betting. While the company has deep respect for Seminole Tribe’s sovereignty, we remain confident in our legal position,” the spokesperson said.
DraftKings is not the only gaming company to offer similar DFS products or sports event contracts in Florida. Its sports event contracts are not currently offered on Seminole Tribe lands.
Regulatory Writer and Editor
Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.