The Florida The special term begins today as lawmakers meet to discuss the state’s gambling contract with the government Seminole Tribe, which includes sports betting.
The session lasts until Wednesday and there is a lot to talk about.
The legislature will vote on it Accept the contract agreed last month from the Seminole and Governor Ron DeSantis. But they will also develop support laws to clarify the rules and exactly how Florida Sports Betting will work.
These secondary bills are crucial because of how written that compact seems a gloomy picture for paint US online sports betting.
An invoice Senate Act 2-Awas presented on Friday by Sen. Travis Hutson.
How does FL sports betting work?
The Seminole tribe will control its sports betting in Florida Hard Rock Gaming Brand. Other brands could potentially enter Florida by working with the state or tribe’s equestrian horse racers.
According to the contract, the tribe must co-sign sub-license agreements at least three Pari-Mutuels.
However, these contracts are only marketing agreements per se.
What is a Marketing Deal?
In other words, a pari-mutuel could partner with an outside brand (such as FanDuel or DraftKings), but only use this mark in addition to Hard Rock technology.
A Seminole spokesperson confirmed that Pari-Mutuel betting skins “are operated by Seminole Gaming”.
The income from these skins would also be split 60/40 between the pari-mutuel (and partner) and the tribe.
A hard sell?
Would US sports betting providers actually agree to these terms?
Will FanDuel activate its DFS database in Florida and then hand over all of this customer data to Hard Rock? Will DraftKings take the risk of putting their name on third-party technology that is not controlled?
“It might not be all that appealing, but can you afford to miss a $ 3 billion market opportunity?” said the industry advisor and former Hard Rock Gaming SVP Kresimir Spajic. “If DK and FD don’t, Kindred, Tipico, Betway, Wynn and others can.”
Hell in the details of the FL sports betting
Barbara DeMarco, a lobbyist Porzio government affairs, he said The upcoming regulations would determine whether it makes economic and operational sense to do these deals.
“The operators will closely monitor the secondary bills,” she said.
Chairman of Hard Rock International Jim Allen said publicly He wants to work with the major sports betting operators. Perhaps the two sides can find terms that work for everyone.
FanDuel, DraftKings and BetMGM declined to comment.
A long way to compact is law
Of course, the Florida Gaming Compact is far from being law. Anti-gambling groups have threatened Complain when it is passed. they argue The treaty needs the approval of the voters.
The compact also has to go up Washington, DC for review by the Indian Affairs Office. The office will review the contract for compliance IIndian Gaming Regulatory Act (IGRA) and federal law in the broader sense.
This is no slam dunk. Mobile sports betting can take place outside of the home country rather than on a mobile device. That would make the compact one Failure to comply with federal law.
Goodbye mobile betting?
The simplest solution to this problem is to completely remove FL mobile sports betting from the contract.
The state still receives its revenue-sharing payments from other forms of gambling, and the tribe, in partnership with the Pari-Mutuels, receives exclusivity in retail betting.
“I could see this contract went through with no online sports betting if necessary,” said Spajic. “That would still be valuable for everyone involved except the mobile network operators.”
So far it would not be good for the operators. But what happens next week in Florida could have far-reaching ramifications for US sports betting as well.
States like California have an equally strong tribal presence and will be closely monitoring the special session.
“If this treaty is passed and approved by the Bureau of Indian Affairs, it will set a great precedent for all tribal states,” added Spajic. “The consequences of this will be state, not local.”
Needless to say, it wouldn’t be good for the sports betting industry to be excluded from two of the largest markets in the United States.