United States
United Kingdom
Summary:
- The Seminole Tribe and West Flagler have reached a partnership to offer jai alai betting.
- The two parties have agreed to halt any future legal disputes.
- The Seminoles will contribute $2.5bn to the state to cover profits from sports betting and land-based casinos over the next five years.
After years of legal disputes, Florida’s Seminole Tribe announced signing a new partnership deal with the West Flagler Parties (comprised of West Flagler Associates, LTD, Bonita-Fort Myers Corporation, Southwest Florida Enterprises, Inc., and Isadore Havenick) to bring Jai Alai betting to the tribe’s Hard Rock Bet app.
Monday’s announcement follows the U.S. Supreme Court’s decision four months ago not to review West Flagler’s case against the U.S. Department of Justice.
The ruling upheld an appellate court’s decision, effectively allowing the Seminoles to offer digital sports betting throughout Florida.
The New Partners, to “Refrain from Engaging in Any Future Litigation”
As part of the agreement, West Flagler and the Seminoles have pledged to “refrain from engaging in any future litigation concerning the Seminole Tribe’s gaming operations”.
The decision marks a striking turnaround for the parties involved. West Flagler, which owns two Florida parimutuels, spent three years and considerable resources challenging the 2021 Seminole-Florida compact in both federal and state courts. NOVA Southeastern constitutional law professor Bob Jarvis told iGB.
As I said when this litigation first started, West Flagler had no chance to prevail
Jarvis went on to comment that while the West Flagler Parties put up a fight against the Seminoles in both federal and state courtrooms in Florida and the District of Columbia, their efforts led nowhere.
“One wonders why West Flagler was so pig-headed”, he added, further questioning the type of advice the parties received from their attorneys.
Jarvis also rhetorically asked whether they are now sorry for the decision to “spend so much money on a quest that could not possibly succeed”.
The Seminoles to Pay $2.5B Over Five Years to the State
“With this agreement, the Seminoles can now fully move forward with their plans”, Jarvis said, explaining the Tribe will “soon” return to their negotiations with the state aimed at the topic of full mobile betting.
The compact will require the Seminoles to pay the state $2.5 billion over five years, covering profits from both sports betting and their land-based casinos.
The tribe currently operates six casinos in Florida in addition to Hard Rock Bet.
Commercial operators are barred from offering online wagering in Florida unless they partner with the Seminoles.
This arrangement requires these operators to pay 60% of gross gaming revenue and use the Seminoles’ servers.
The agreement between West Flagler and the Seminoles marks a significant first.
Seminole Gaming chief executive officer Jim Allen recently told CNBC that the company welcomes partnerships, although other major operators have expressed concerns over the costs and the tech-stack-sharing requirements.
Allen described the partnership as a “win-win” and praised the new “relationship of collaboration”.
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
The new deal will see Hard Rock Bet offering jai alai betting by the first quarter of 2025.
