Florida approves exclusive sports betting agreement with Seminole Tribe

News  /  Published 26 Apr 2021  / 

A gaming compact allowing sports betting in Florida exclusively through the Seminole Tribe – which may partner with the state’s pari-mutuel operators under the agreement – has been approved by Florida governor Ron DeSantis.

As per the agreement, sports betting must only take place in sportsbooks operated by the Tribe, or online.

“This historic compact expands economic opportunity, tourism, and recreation, and bolsters the fiscal success of our state in one fell swoop for the benefit of all Floridians and Seminoles alike,” said Governor Ron DeSantis.

“Our agreement establishes the framework to generate billions in new revenue and untold waves of positive economic impact.”

The Tribe will be required to pay 13.75% of their income received from players that use a pari-mutuel sports betting operator to the State during each revenue sharing cycle. The Tribe must also pay 10% of income received from sports betting play to the State.

The Tribe can also partner with qualified pari-mutuel betting operators for marketing and branding purposes. In return, the Tribe must compensate the pari-mutuel betting operators with 60% of their operating income from betting, defined as net win minus reasonable expenses.

These agreements are set to last at least five years.

If the Tribe does not have more than three or more written agreements from pari-mutuel operators within three months of the effective agreement date, the Tribe’s agreed payments to the State will increase by 2%.

To ensure bets placed online are done so through the Tribe, the Tribe must put a registration process in place to validate players’ identities, implement geo-location to prevent players betting from outside Florida, and set out anti money laundering measures.

The Tribe will pay 8.33% of revenue to the State as part of a monthly payment.

The compact – including existing provisions relating to land-based gaming – is estimated to generate a minimum of $2.5bn in revenue in the next five years and $6bn through 2030.

It is set to become law once published in the Federal Register and will terminate on July 31 2051.

 

Source: iGB North America