Seminole Tribe Agrees To Restart Revenue-Sharing Agreement With Florida

Article by : Erik Gibbs Dec 13, 2023

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In a high-profile unveiling of brand-new casino games this week, the Seminole Tribe is set to recommence its payments to the state as per a three-decade agreement.

This comprehensive deal not only encompasses the financial aspect but also grants the tribe authority over the domain of sports betting, adding a layer of significance to the unfolding developments.

The CEO of Seminole Gaming and chairman of Hard Rock International, Jim Allen, unveiled the Seminole Tribe’s plan to pay the state a minimum of $650 million over the next year as part of the reinstated 2021 compact.

Committed to adhering to the comprehensive terms, the tribe expressed full compliance and emphasized their intention to meet all stipulations. Although the commencement date and initial payment amount weren’t specified, Allen assured that payments would align with the compact’s terms.

The 30-year deal, ratified by Governor Ron DeSantis and Seminole Tribe Chairman Marcellus Osceola Jr., commits the Seminoles to contribute approximately $20 billion to Florida.

This includes a substantial sum of $2.5 billion over the initial five years, featuring an innovative provision ensuring a yearly payment of $450 million, even if sports betting encounters challenges throughout the year.

The deal granted the Seminoles permission to introduce craps and roulette at their casinos and construct three additional tribal casinos in Broward County. It also permitted pari-mutuels to form contracts with the Seminoles and share sports betting revenue.

Jim Allen noted that the tribe actively collaborates with 16 of the state’s 32 pari-mutuel operators, with five recent launches.

After a two-year delay due to legal disputes over mobile sports wagering, initiated off tribal property, the tribe resumed its gambling expansion.

Despite arguments from two pari-mutuel companies claiming violations of federal law and a 2018 state constitutional amendment, the Seminoles proceeded following the U.S. Supreme Court’s refusal to block sports betting.

On November 7, the tribe commenced accepting mobile sports bets, extending statewide this week. The launch included table games and sportsbooks at South Florida facilities, with celebrities like Gloria and Emilio Estefan, Jon Bon Jovi, Bruno Mars and sports figures attending.

While the legal battles persist, West Flagler Associates and Bonita-Fort Myers Corp. are expected to appeal an appellate court ruling that upheld the Department of the Interior’s decision to oversee gambling on tribal land.

Pari-mutuel companies have also petitioned the Florida Supreme Court to block the sports-betting provision, arguing a violation of a constitutional amendment.

The Seminoles contend that the provision aligns with the 2018 amendment, allowing betting on mobile devices anywhere in the state to be deemed on tribal lands.

The ongoing legal disputes trace back to the initial compact in 2007, challenging its ratification by lawmakers and leading to revised terms. In 2019, the Seminoles halted payments to the state amid a prolonged disagreement over designated player card games.