Recent measures introduced in the Florida legislature aim to tackle the longstanding issue of illegal slot machines proliferating across the state, presenting a growing concern for authorities. Bills SB 1046 and HB 189 have been tabled to provide clarity on existing laws surrounding these machines and to ramp up penalties for their possession and operation.

Legal Experts Push for Tougher Penalties in Florida’s War Against Illegal Slots

Dan McGinn, a special counsel for the law firm Jones Walker, emphasized the intention behind the bills, highlighting their role in dissuading proprietors from harboring illegal slot machines. Speaking to CDC Gaming Reports, McGinn underscored the significance of elevating penalties to felonies, suggesting it would incentivize law enforcement to pursue cases more vigorously.

The presence of illegal slot machines extends beyond authorized gambling establishments, such as pari-mutuel facilities and properties owned by the Seminole Tribe of Florida. 

Eric Carr, Director of External Affairs for the Florida Gaming Control Commission, shed light on the clandestine nature of these operations, often camouflaged within adult arcades and internet cafes.

Carr emphasized the broader ramifications of such illicit activities, linking them to the funding of violent criminal enterprises like drug trafficking and human exploitation. He cited recent instances of violence at illegal gambling sites across various counties, underlining the urgency for legislative intervention to curb this menace.

Florida Shines Light on Slot Machine Regulations

Unlike states grappling with ambiguity over gambling definitions, Florida’s stance on slot machines remains clear due to statutory prohibitions. McGinn dismissed any ambiguity, stressing that Florida’s legal framework unequivocally outlaws such machines except in designated areas.

The American Gaming Association (AGA) has thrown its weight behind efforts to eradicate illegal gambling apparatus. AGA President and CEO Bill Miller emphasized the importance of empowering law enforcement to combat this underground market, aligning with Florida’s legislative push to enhance penalties and enforcement measures.

McGinn echoed sentiments of support for the proposed bills, emphasizing their potential to mitigate the spread of illegal gambling activities statewide. He underscored the broader societal benefits of curtailing unregulated gambling, pointing to the associated social and economic harms.

As the legislative debate unfolds, stakeholders remain optimistic that these measures will provide much-needed clarity and deterrence against the proliferation of illegal slot machines. 

With bipartisan support and backing from industry advocates, Florida’s crackdown on illicit gambling endeavors signals a concerted effort to safeguard communities and uphold the integrity of the state’s gaming regulations.

The post Florida’s Battle Against Illegal Slot Machines Intensifies appeared first on Keno Wizard.

Florida’s Attorney General, Ashley Moody, has called on the state Supreme Court to dismiss a case challenging the legality of digital sports betting, arguing that it does not fall under the state constitution’s definition of casino gambling. The case, initiated by West Flagler and Associates (WFA), challenges the 2021 compact between Gov. Ron DeSantis and the Florida Seminoles, extending the tribe’s monopoly to encompass sports betting and casinos.

Key Grounds for Dismissal in West Flagler’s Sports Betting Case

Moody’s 65-page response, filed just minutes before the deadline, outlines several reasons for dismissal. Notably, it asserts that WFA’s delayed filing, more than two years after the compact approval, is grounds for denial. The response also argues that WFA’s relief-seeking through a “quo warranto” filing is inappropriate, emphasizing that sports betting does not fit the definition of a casino game.

WFA’s contention revolves around the alleged overreach of powers by Gov. DeSantis and the state legislature in approving the compact, claiming a violation of the federal Indian Gaming Regulatory Act. 

The lawsuit further asserts that the monopoly granted to the Seminoles and the hub-and-spoke model for online sports betting infringe on federal regulations. Additionally, WFA argues that any gaming expansion should be subjected to a public vote.

The gambling agreement of 2021, in addition to granting the Seminoles authority over sports betting, permitted the tribe to introduce craps and roulette at its casino establishments. Furthermore, the agreement envisages the potential addition of three casinos on tribal land in Broward County for the Seminoles.

WFA’s SCOTUS Appeal Clashes with Seminole Tribe’s App Relaunch

In October, WFA petitioned the Supreme Court of the United States (SCOTUS) in an attempt to challenge the exclusive rights granted to the Seminole Tribe by Gov. Ron DeSantis, following its failure in the federal court. 

Meanwhile, the Seminole Tribe has quietly relaunched its Hard Rock Bets mobile app, allowing sports betting for existing registrants and Unity loyalty program members in Florida, despite the ongoing legal challenges. 

While the tribe plans to introduce in-person betting at three South Florida casinos on December 7, opponents, including West Flagler Associates, continue to contest the Seminole Tribe’s exclusive sports betting rights. 

Despite the legal complexities, both WFA and the Seminoles share the common goal of expanding legal sports betting options for Floridians. WFA’s strategy has shifted to pursuing relief through federal courts, with plans to file a case with the US Supreme Court. The court granted an extension until February for WFA to submit its case.

The post Florida’s Legal Showdown Continues Over Seminole Tribe’s Sports Betting Deal appeared first on Keno Wizard.

Florida’s mobile sports wagering market can become one of the largest in the United States. However, JMP Securities analyst Jordan Bender predicts limited competition could present unique challenges, damaging the sector’s profitability. Hard Rock International, the gaming arm of the Seminole Tribe, will have exclusive control over the state’s mobile sports wagering offerings, presenting substantial revenue implications.

Ongoing Legal Disputes Still Disrupt the Fledgling Sector

The Seminole Tribe holds exclusive rights to sports wagering in Florida, as stipulated in the Class III Tribal-State Gaming Compact signed into law in 2021. This agreement, endorsed by Governor Ron DeSantis, designates the tribe as the sole operator of sports betting in the state. In return, the Seminole Tribe must contribute $500 million annually to the state’s revenue.

Despite legalizing and launching sports betting for a brief period, the activity remains on hold in Florida due to the ongoing legal battle between the state’s casinos and the Seminole Tribe. Casinos alleged that the gambling compact granting Hard Rock total exclusivity violated federal law on several points, resulting in the current drawn-out proceedings.

However, even a resolution in favor of Hard Rock might not resolve the state’s sports wagering woes, as Jordan Bender predicts yearly revenues can reach $1.3 billion to $1.5 billion, significantly below the potential $2 billion in revenue if the market were open to competition beyond the Seminole Tribe.

Healthy Competition Can Foster Higher Revenues

The potential exclusivity of Hard Rock International in Florida’s mobile sports betting market could limit the sector’s profitability. Such a scenario has occurred in other states, including Connecticut, Oregon, and Rhode Island, where a lack of competition has affected revenue growth. States like New Hampshire, where a single operator enjoys a monopoly, have faced similar challenges.

States that have gone the route of one to three licenses… have underperformed… with a core reason being less incentive to invest in players and the product with no competition.

Jordan Bender, JMP Securities analyst

Bender highlights that competition often benefits states seeking to maximize sports betting revenue. For example, New York should see sports wagering revenue of $2 billion at maturity despite having a population and per capita income statistics similar to Florida. Arizona and Colorado have thriving sports wagering markets because they allow multiple competitors to participate alongside tribal casinos.

While Hard Rock International operates the Hard Rock Bet sports betting app in several states outside Florida, technology constraints have limited its ability to secure a market share and compete with industry leaders. An undisputed monopoly in its home state could mitigate these limitations despite its potential long-term negative impact.

The post Hard Rock’s Sports Betting Monopoly Could Limit Florida’s Revenue Potential appeared first on Keno Wizard.