Federal Appeals Court Asked to Rule as Florida’s Online Betting Dispute Continues

By  //  January 2, 2023

The ongoing legal battle surrounding the question of online betting in Florida is starting to bear similarities to Jarndyce vs Jarndyce, the Chancery Court case at the heart of Dickens’ Bleak House.

We can, at least, say that we know in this case what the dispute is over, and although the cast of players keeps expanding, we are fairly clear on the main protagonists. Otherwise, however, the similarities are too strong to ignore. 

 The latest development in the case has seen a joint application from the Biden Administration and the Seminole Indians to the Federal Court of Appeal. They want to the court to overturn a blocking order imposed back in November 2021 that froze online sports betting in the US just three weeks after it had been introduced on the back of a deal signed off by State Governor Ron DeSantis and the Seminole Tribe of Florida and ratified by the Florida Legislature.  

 A lawyer representing the Internal Department argues that Florida Interior Secretary Deb Haaland acted lawfully in allowing the deal to go through last summer and that the blocking order issued by U.S. District Judge Dabney Friedrich was unjustified. Meanwhile, lawyers representing Florida gambling businesses argues that lifting the order would be “a cruel joke.” Just how did things reach this state of affairs, and how does it affect the people of Florida who simply want to place a bet on their favorite team? 

 A hub and spoke agreement 

 Online sports betting has been introduced in more than 30 US states since the US federal court struck down PASPA in 2018. Florida has spent the intervening years debating how it can follow suit in a way that remains compliant with the existing federal Indian Gaming Regulatory Act. This restricts gambling activities to reservation land.  

 The solution arrived at by the Gov De Santis and Seminole Tribal senior Marcellus Osceola, Jr. allowed gamblers anywhere in Florida to place bets online, with those bets running through servers located on tribal property. The compact dictated that such bets would be deemed to be exclusively conducted by the tribe. 

 This met strong opposition from pari-mutuels who alleged the compact violated federal laws and would have a “significant and potentially devastating” impact on their businesses. US District Judge Dabney Friedrich basically agreed and found that Haaland had made fundamental errors in allowing the deal to go through.  

The situation for gamblers in Florida 

 These, then, are the points that a three-judge appeals panel is currently considering, and it has overseen significant and lengthy debate, with legal arguments put forward by both sides.  

 In the meantime, Floridians still have a range of options open to them. On-site casino gaming and sports betting remains available at reservation casinos across the state. There are also online operators like PlayStar NJ who are licensed outside Florida. However, while anyone over the legal age is permitted to visit casinos like PlayStar, it does mean taking a trip to New Jersey to do so.