Florida Gaming Expansion Moves Forward

This week, Florida legislators concluded a special session, ratifying an agreement with the Seminole Tribe of Florida that will launch the largest expansion of legal gambling in Florida in the past decade, allowing for limited "Vegas-style" casinos, as well as online sports betting, via apps.

The measure was negotiated between the Seminole Tribe of Florida and Governor Ron DeSantis' office and still requires approval from the U.S. Department of Interior, which has 45 days to weigh in. If approved, it would greatly expand the Seminole Tribe's gambling monopoly in Florida.

The Florida Senate approved the compact on Tuesday in a 38-1 vote. The House approved the legislation on Wednesday via a 97-17 vote. If approved, Floridians over 21 years of age could start legally gambling on their cellphones on October 15.

The Seminole Tribe’s Hard Rock Casinos in Broward and Hillsborough counties would get full Las Vegas-style gambling, including roulette and craps, while mobile sports betting would be allowed through online apps managed by the Seminole Tribe, along with Florida’s existing racetracks and jai-alai operations.

Through its Hard Rock Casino and Resort operations, the Seminole Tribe of Florida has become one of the largest gaming entities in the world. Originally opened as an international bar and restaurant chain called Hard Rock Cafe in the early '70s, Hard Rock Cafe International was sold to the Seminole Tribe of Florida in 2007, after its success in Florida gaming provided it with the capital to pursue the iconic brand. Hard Rock International has venues in 74 countries, including 185 cafes, 25 hotels, and 12 casinos.

Under the new pact, the Seminole Tribe would continue to operate slot machines, blackjack, and other current games at its existing casinos, but would add the ability to build three new casinos at its existing property outside Hollywood, FL.

The expansion is the result of an effort to allow the Seminole Tribe to fulfill its guarantee of $500 million in annual revenue payments to the state, while still being able to collect an equitable profit. Seminole Gaming CEO Jim Allen estimates that operating full casino games will allow it to cover $400 million of that amount. If the Department of Interior approves sports betting, it is expected to pay for the remaining $100 million of the guarantee.

Critics wanted to see more money directly tied to education and other areas where there is a direct social benefit. Also, amendment 3, approved in 2018, requires voter approval of any expansion of gambling in Florida, which has led to speculation that the new pact will face legal challenges.

Proponents hope to avoid such an interpretation through a so-called "hub and spoke" model, which requires the Seminole Tribe to handle all sports betting conducted anywhere in the state through an internet server on its tribal lands. However, the compact also allows licensed racetracks and jai-alai operators located outside of reservations to build their own apps and keep 60 percent of the proceeds from each bet, even if it goes through the Seminole Tribe’s server.