USA - FLORIDA Trends and Developments Contributed by: Marc W. Dunbar, Daniel J. McGinn and Dan Russell, Jones Walker LLP
Jones Walker LLP Suite 1200 106 East College Ave Tallahassee FL 32301 USA
Tel: +1 850 214 5100 Fax: +1 850 214 5150 Email: mdunbar@joneswalker.com Web: www.joneswalker.com
Legal gambling in Florida exists within a corridor, bounded on one end by Article X, Section 30’s voter control of gambling amendment, which requires state- wide voter approval for casino gaming expansion, and on the other by the 2021 Seminole Compact, which grants the Seminole Tribe exclusive rights to operate certain gaming activities across the state. Within this framework, limited opportunities for expan- sion exist, and those that do are generally tied into the provisions of the Compact. To that end, the Seminole Tribe recently began offering games based on his- torical stock car racing results through its proprietary sports betting application, providing Florida residents with new gaming options in a jurisdiction where iGam- ing is otherwise unlawful. Additionally, the decoupling of gaming activities from thoroughbred pari-mutuel activities remains a legis- lative and judicial issue within Florida. Currently, the Florida Gaming Control Commission is embroiled in litigation with an entity seeking to decouple its racing licence and slot-machine permit through a challenge to the constitutionality of certain Florida statutes per- mitting the decoupling of gaming permits from other pari-mutuel activities. This litigation takes place within the backdrop of a legislative session that saw mul- tiple bills – including decoupling provisions – filed, with none ultimately making it out of the legislative process. In the lottery sector, recent legislative activities indi- cated an interest by the industry in creating an opera- tional framework for lottery courier businesses. Cur- rently, such activities are generally considered to be
illegal within Florida by the Florida Department of the Lottery in their common forms, as no specific authori- sation for the activity exists, and most providers have one or more operational practices that conflict with the either statute or administrative rule. As such, con- tinued legislative and regulatory efforts are expected to clarify the boundaries for this activity, particularly given that enterprising businesses continue to attempt to bring compliant operational models online within the state. The Florida Gaming Control Commission continues its efforts to combat the grey-market slot-machine industry through both enforcement actions in con- junction with local law enforcement agencies and legislation attempting to strengthen penalties against grey-market operators. However, while these activi- ties continue, the Commission has not addressed other high-profile industry activities such as sweep- stakes gambling, prediction markets or prop-betting websites with similarly vigorous enforcement. Some sweepstakes and “fantasy” operators received cease- and-desist letters issued by the Commission, but ulti- mately no other enforcement actions were taken. Notably, the current governor is term-limited, and the next election is set to take place in November 2026. As the governor controls the appointment of the Florida Gaming Control Commission’s commission- ers, the outcome of the election will likely redefine the agency’s policies and priorities, and thereby have a significant impact on the potential for industry growth.
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