Florida Bill Seeks to Legalize Daily Fantasy Sports, but Might Violate the Seminole Gambling Compact

Casino Watch Focus has reported on the various attempts at legalization of Daily Fantasy Sports DFS), especially in Florida, a state that has been heavily lobbied due to major DFS companies DraftKings and FanDuel physically residing there. Last January an attempt was made to officially legalize, but it never materialized. New efforts have surfaced and have now passed committee. Florida Politics reports:

A proposal to exempt fantasy sports from state gambling regulation cleared a Senate committee Thursday—but with one notable opponent.

“I don’t think the issues raised are clear,” said Sen. Dorothy Hukill, a Port Orange Republican and vice-chair of the *Regulated Industries Committee, which handles gambling policy.

Aside from Hukill’s ‘no’ vote, that committee otherwise moved the bill (SB 374) by *Dana Young, a Tampa Republican, on an 8-1 vote. Similar measures (SB 840 223) have been filed for the upcoming Legislative Session.

In the online games, players pick teams of real-life athletes and vie for cash and other prizes based on how those athletes do in actual games.

Asked to clarify her position after the meeting, Hukill said, “Is this a game of skill or not? I don’t think that’s clear, at least for now.”

The issue isn’t as simple as legislation clarifying if it’s a game of skill or change and gambling or simple recreation. There is also the issue of the major gambling compact between Florida and the Seminole Tribe. They have issued a letter that clearly outlines they view Fantasy Sports as gambling and in violation of the compact and they have threatened to withhold payments to the state if such gambling expansion is pushed through by the legislature. On online source explains:

In a Tuesday letter to the state officials, the Seminole Tribe made it clear that the regulation of sports contests is to violate the tribe’s exclusive rights and the Seminole is to stop making payments to the state. The letter was signed by the Tribe’s general counsel Jim Shore and addressed to Sen. Travis Hutson and Rep. Mike La Rosa. The letter points out that the bill is to reduce the Tribe’s exclusivity. Furthermore, it states that the tribe is ready to discuss the issue with the state representatives. According to the letter, the bill is to violate Part XII of the 2010 Gaming Compact between the State and Tribe.

At present, the state reaps more than $200 million per year for granting gambling exclusivity to the tribe. Supposing that the state to tax daily fantasy sports contests, the tribe threatened to cease payments to the state. Industry insiders believe that the tribe’s warnings may change the officials’ stance on the matter and the DFS regulation may hit the rail. This seems to be the likely scenario as Florida is eyeing DFS regulation since 2015. Two years later, the bill is pending a stamp by the local government. 

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