Florida Sports Betting Revenue Appears to be Exceeding Expectations

Despite all the litigation drama over Florida sports betting in recent years, the industry appears to be doing quite well for The Sunshine State. 

And that may be putting it lightly.

As part of the gaming compact that legalized sports betting in Florida, the Seminole Tribe agreed to pay the state at least $2.5 billion over the first five years. Exact revenue figures are not made public like they are elsewhere, since operations are offered exclusively by the Seminoles. But recent details on the tribe’s payment to the state have trickled out. And the numbers are massive.

Florida Sports Betting Could Be Exceeding Revenue Predictions by More Than 60 Percent 

The initial promised payment from the Seminoles amounts to $500 million per year. As Jim Saunders of MSN.com writes, the tribe is on track to shell out an additional 60-plus percent of that in the coming year, thanks to the expansion of gaming operations:

“The gambling compact, along with giving the Seminole Tribe control of sports betting, allowed it to offer craps and roulette at its casinos. The tribe pledged to pay the state a minimum of $2.5 billion over the first five years and possibly billions of dollars more throughout the pact. A report released in February by the state Revenue Estimating Conference projected that the state will receive $809.1 million during the current fiscal year in Indian gambling money. The report said, in part, ‘all signs point to legal sports betting activity running much stronger than contemplated in the prior forecast (projections issued in August). Conversely, slot machine and table game activity are running slightly weaker than previously thought.’”

This report seemingly aligns with industry trends. With online sports betting in the United States more popular than ever, it comes as no surprise that Florida is seeing more business funneled that way. And because mobile sports betting is so prevalent, it lessens the traffic and, therefore, value of in-person activities like table games and slot machines.

This Goes Down as a Huge Win for Both the Seminole Tribe and State of Florida

Exceeding revenue projections is not a novel occurrence throughout the industry. Even the most optimistic forecasts repeatedly underestimate interest in mobile sports gambling. These outperformances are even more pronounced in flagship locations, such as the Florida sports betting market. And with Texas sports betting as well as California sports betting on the back burner, The Sunshine State currently challenges the New York sports betting market for the largest in the country.

Still, these results were not a given. For starters, the initial launch of Florida sports betting got rolled back following a lawsuit that tied up its legitimacy. After years of litigation, the Seminole Tribe is free to go about their business. But it wasn’t immediately clear how well it would be received.

The lack of other options made for curious expectations as well. The Seminole Tribe is the only Florida sports betting operator up and running. That type of monopoly, which is ingrained into their gaming compact, isn’t normal. Many wondered whether the exclusivity could drive down the state’s total betting handle.

And in all honesty, it might have. Not everyone in Florida is within driving distance of a Seminole Tribe casino. If customers needed to be present to place their wagers, sports betting revenue in The Sunshine State almost assuredly wouldn’t be this high. Fortunately for the Seminole Tribe, their unique interpretation of the gaming compact is proving effective.

The Online Sports Betting Element is Proving Crucial 

The success of Florida sports betting so far can be traced back to the litigation that once jeopardized it. 

Plaintiffs West Flagler Associates and Bonita-Fort Myers Corp filed their complaint because the Seminole gaming compact stated they could only offer sports betting services on tribal property. However, the Seminoles’ Hard Rock sports betting app allowed customers to submit wagers from anywhere inside the state. 

For the tribes’ part, they argued—and continue to argue—that their Florida sports betting app is an extension of their physical property, because the servers responsible for running it are located on tribal land. This interpretation held up inside the Florida Supreme Court. And while the plaintiffs attempted to get the Supreme Court of the United States involved, they elected against hearing the case. That set the stage for the Seminoles to strike an agreement with the plaintiffs and continue offering their wagering services with the furthest reach possible.

This end result is no doubt fueling revenue to date. There’s no way the Seminoles would be in a position to pay out over $800 million in a single year if their online sports betting app wasn’t accessible to everyone in Florida, no matter where they might be located.

A New Florida Sports Betting Lawsuit Could Technically Change Everything

Of course, a new Florida sports betting lawsuit filed by Protect The Constitution LLC is challenging the circumstances under which the Seminoles operate their gambling services. If the complaint is successful, it will noticeably compromise the tribe’s sports betting revenue stream, along with the amount of money it’s sending to the state. 

For now, Florida sports betting operations are carrying on like usual. Experts and insiders also do not seem to have a firm hold on the merits of Protect The Constitution’s case. Only time will tell what happens. But if the courts deem the lawsuit legitimate, it will seriously lower the amount of money being generated from sports betting in Florida.

 

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