Floridians, we hope you enjoyed sports betting for all of the three weeks in which it was legal in the Sunshine State. Why? Because last night a federal judge struck down the Seminole Tribe‘s new compact with Gov. Ron DeSantis (R). Basically, Interior Secretary Deb Haaland screwed up and approved a compact that violates the terms of the Indian Gaming Regulatory Act. (Still unresolved is the state constitutionality of the compact, which is dubious at best.) District Court Judge Dabney Friedrich threw out the Biden administration’s daffy interpretation that gambling in cyberspace is happening on “tribal lands” so long as that’s where the servers are located, a line of reasoning the court dismissed as “fiction.”
Wrote Friedrich, “over a dozen provisions in IGRA regulate gaming on ‘Indian lands,’ and none regulate gaming in another location. Indeed, if there were any doubt on the issue, the Supreme Court has emphasized that ‘[e]verything—literally everything—in IGRA affords tools … to regulate gaming on Indian lands, and nowhere else.’” Chastising Haaland, the judge continued, “The Secretary must reject compacts that violate IGRA’s terms.” As gaming law expert Daniel Wallach said, “The avalanche of legal authority was on the side of invalidating online sports betting. She recognized the obvious—that a customer located in Jacksonville or Key West or Pensacola is not on Indian land when they initiate the wager.” He added that “the state of Florida and the Seminole Tribe were operating in a state of delusion.” (You can place tribal sports bets in Michigan, Arizona and Connecticut … but only if you’re on Native American land at the time.)
In this David vs. Goliath scenario, Magic City Casino and Bonita Springs Poker Room won, and Haaland, DeSantis and the Seminoles lost. Big time. As in $2.5 billion big. It’s not just sports betting. Out go craps and roulette. Even DeSantis had to admit that reservations-in-the-ether was “an unsettled legal issue. We anticipated that this could happen,” he added, indicating that he might now go the constitutional route and put it before the voters. Seminole spokesman Gary Bitner said the tribe was “carefully reviewing” the verdict and generally keeping its powder dry. (Their motion to dismiss got kiboshed by the court.) The Interior Department, which had weakly argued that Florida was taking a “permissible hybrid approach,” is expected to appeal. However, it already shot itself in the foot by failing to sever the sports betting clauses—which were the bone of contention—from the compact as a whole. Whoops.
If DeSantis goes to the electorate—and we hope he does—he’s starting at a disadvantage. Already three other petition drives in re sports betting are (slowly) collecting signatures, one of the three being backed lavishly by DraftKings and FanDuel. What are the chances of the Seminoles regaining exclusive OSB rights in Florida? Not too damn good, frankly.
Sports betting in New York State hasn’t even gone online yet and already it’s not enough for state Sen. Joseph P. Addabbo Jr. He’s filed a bill to add horse tracks to OSB-eligible venues. Also, OSB providers would be permitted to partner with “select affiliates” to offer on-site betting. In other words, get ready for sports-betting kiosks at Yankee Stadium. If Addabbo succeeds, the Empire State will go from being one of the most uptight jurisdictions for sports wagering to one of the most wide-open. Racetracks, sports arenas, OTBs and more … it’s a veritable tsunami of sports betting. And you wouldn’t have to open an account if you use the kiosks, under the Addabbo bill. “These changes are expect to result in billions of dollars of tax revenue for the State of New York,” it reads. Well, that’s a mite optimistic but we don’t fault him for trying.
The siren song of OSB has also been heard by the Wampanoag Tribe of Gay Head on Martha’s Vineyard. Remember them? When last we saw them they were trying to build a Class II casino. That’s on the back burner for now, as they petition Gov. Charlie Baker (R) for Class III gaming plus OSB. Mind you, there’s no sports betting anywhere in Massachusetts at present so we’re skeptical that “Cautious Charlie,” as he’s known, would go out on a limb for the Wampanoag. Still, it would be only fair to give the Gay Head tribe something, since former Gov. Deval Patrick (D) froze them out of Class III status nine years ago.
Indeed, the Gay Head Wampanoag can make a darn good case that they’re the only eligible tribe standing, the Trump administration having disestablished the Mashpee Wampanoag in the wake of a corruption scandal involving former chairman Cedric Cromwell. There went the long-planned First Light Casino (pictured) in a puff of bribery. On the other hand, the Gay Head band has stubbornly refused to apply for a building permit for its bingo hall, despite a federal court order, so will it be more tractable with its neighbors if it’s approved for a full-fledged casino? We wish them luck but this looks like a tricky bank shot.
Jottings: Covid-19 cases are up in Michigan and masks are back in casinos, starting today. MGM Grand Detroit will have the strictest policy, Greektown Hotel-Casino the loosest … With Crown Resorts on the ropes, Blackstone Group is going for the kill, making a $6.2 billion offer for the troubled firm. A Blackstone purchase would undoubtedly play well with Australian regulators, bringing the promise of a new broom. Crown shares hopped 17% on the offer … Chicago casino proposals are already drawing some criticism. For instance, Rivers 78 could impinge on Gov. J.B. Pritzker‘s desire to use part of the site for an academic tech center. And Hard Rock Chicago is predicated upon a publicly subsidized transit center that Mayor Lori Lightfoot (D) is disinclined to build … Nevada regulators are being pressured to allow ID-free, cashless play at Silver State casinos. Station Casinos argued against the change, calling it “an invitation to approve a regulation change that would contravene federal law.”
It was a terrible decision for the Interior Secretary to go along with a sham, Governor DeSantis has shown time and again that he is willing to lie for perceived gain, now the Feds are in bed with a Governor who is trying to sidestep the voting public of a state. Like David said, it’s Florida law that voters have to approve gambling expansion. It’s become a modern American “tradition” to pass laws first, then see if they somehow can pass Constitutional muster. It’s being done to limit voting rights, women’s reproductive rights, and here in California they are trying to pass an anti-camping law that is doomed to fail on Constitutional issues… Whatever happened to common sense and consensus…