DraftKings, FanDuel Start Pitching Florida Sports Betting Inclusion
Sports betting in Florida could become a monopoly, however DraftKings and FanDuel work hard to make sure this doesn’t happen.
This is after Jim Allen, CEO of Seminole Gaming and chairman of Hard Rock International. His comments on the Senate Budget Committee came on the first day of Florida’s special session to review the newly negotiated pact between the Seminole Indians and the state of Florida:
“I want to make sure that companies like FanDuel, DraftKings and Barstool and of course the Parimutuels themselves don’t stand a chance. In fact, we actually have suggestions from some of these companies, especially DraftKings and FanDuel that I have met personally with Barstool and many other companies.
“The tribe is 100% interested and ready to develop a business relationship with these companies, be it through the Parimutuels or directly.”
Allen: Seminole’s problem is whether cell phones are allowed
The compact language says that FL sports betting only takes place in a tribal casino as all the servers are located there. That doesn’t exactly match the Indian Gaming Regulatory Act or other judicial findings.
There are also concerns that the expansion of gambling speaks against it Amendment 3who put any future post-death expansion to casino gambling in the hands of the electorate 2018.
These questions don’t matter whether Florida lawmakers should approve the pact, Allen said:
“If someone asks about the legality of sports betting, whether they are linked to Amendment 3, or whether or not they comply with IGRA, it frankly doesn’t matter because the state of Florida is not taking the risk.
“By approving this contract, the tribe is taking the risk. If the tribe does not prevail in court with the conviction that sports betting is legal, they will continue to be required to pay their entire share of sales at all land-based casinos to the state of Florida for 30 years. “
Allen added that the Seminole helped $ 22 million on Amendment 3 and does not believe this has any effect on the trunk.
Report: DraftKings lobbying against Florida sports betting deal
According to Politico DraftKings Sports Betting doesn’t wait for the Seminole to agree to an FL sports betting deal.
Listed DKNG discontinued 11 According to the Politico report, lobbyists have either changed or disrupted the pact in recent weeks.
DraftKings declined to comment on the story to LSR.
Approved by the committee
The committee agreed positively SB 2-Awho legally signed the new Gaming Compact. The contract gives the Seminole Indians, among other things, the exclusivity to operate FL sports betting.
The states 35 Pari-Mutuels can sign marketing agreements with the Seminole and launch their own sports betting skins. This applies as long as there is an agreement between the Seminole and Pari-Mutuel on the distribution of the income and all bets take place on the Seminole’s platform. The Parimutuels would be able to keep 40% of revenue.
Of course, the Seminole Indians don’t have to sign an agreement with anyone.
Would the tribe pay to maintain Florida sports betting exclusivity?
At the moment the contract calls for the Seminole to share 13.75% of sports betting revenue with the state of Florida.
As long as the Seminole agrees to sports betting contracts with three Parimutuels within three months. If these three agreements are not made, the share of sales increases to 15.75%.
That doesn’t seem big enough to dissuade the Seminole from keeping all FL sports betting revenue to themselves. Mike Rogers of Stronach Group, Owner of Gulfstream Park, agrees:
“With sports betting, you can discuss whether this is an exclusivity or not. We think it’s probably an exclusivity. The tribes could pay the extra 2 percent and keep that exclusivity, which is probably something we’d do, what we could do. “
Sports betting in Florida begins in mid-October
The special session hardly began before an addendum to the pact was announced.
First, sports betting will only start on Mid October, according to House spokesman Chris Sprowls::
“In addition, the tribe has agreed to postpone the launch of the sports betting component of the compact until October 15 to ensure that the product is brought to market with appropriate security measures.”
The addendum signed on Monday also eliminates any possible expansion for iGaming across the state. The pact originally called for fair negotiations 36 months with the Seminole about the implementation of iGaming.
Changes to the Florida DFS bill
Several changes have been made to a bill designed to regulate daily fantasy sports in Florida. This includes removing the requirement that official league data is required to settle competitions.
Still, more needs to be done for the bill, the lawyer said Scott Ward. He represented both DraftKings and FanDuel to suggest additional changes:
- Add a grandfather clause. The bill in the written form would mean that DFS operators would have to cease operations until they are licensed as it would violate state law to accept unlicensed entry fees once the bill is in effect. This could affect their licensing in other jurisdictions, Ward warned.
- Allow competitions for college fantasy sports.
- Remove requirement to limit entries. Floridians could be at a disadvantage if participants can’t submit as many entries as players in other states, Ward said.
- Remove the restriction on 21 and older and back to 18 and older.
The Fantasy Sports & Gaming Association also tweeted his opposition to the bill.