Florida Sports Betting: FanDuel & DraftKings Push New Legislation

Florida Sports Betting Vote

On April 23, 2021, Florida Governor Ron DeSantis announced a historic gaming compact between Florida and the Seminole Tribe. Seminole Tribe of Florida Chairman Marcellus Osceola Jr. agreed to a compact that included a $2.5 billion guarantee over the next five years and roughly $6 billion through 2030. That’s the largest commitment by any gaming company in United States history.

The compact passed by an 88% “yes” vote from Florida’s elected legislators with the end goal of generating revenue for education, something that has been a goal of Florida voters since they signed off on a state lottery more than three decades ago with express plans for redistribution of revenue to public education. The Seminole compact grants the Indian tribe a monopoly in essence over sports betting in Florida as the tribe would be the sole controller of gaming licensee rights in the state.

While this compact was well-received by Floridians, legislators, and gaming enthusiasts alike, there has now been a push from heavy-hitters DraftKings and FanDuel to enact a constitutional amendment that would change the state’s plans.

DraftKings & FanDuel Support

DraftKings and FanDuel have formed a political committee called the Florida Education Champions that has filed a proposed constitutional amendment with the state Division of Elections. This amendment would legalize sports betting and redirect the revenue from the activity to public education. It would also directly undermine the $2.5 billion compact with the Seminole Tribe.

The constitutional amendment proposed by the Florida Education Champions would authorize sports betting at professional venues, land-based facilities, and online platforms. The Educational Enhancement Trust Fund would collect tax revenues from betting activity. To get the constitutional amendment to be a part of the 2022 ballot, the Florida Education Champions committee must receive 891,589 valid petition signatures by February 1, 2022.

Christina Johnson, a spokeswoman for the Florida Education Champions committee, recently stated that the “Florida Division of Elections just approved the committee’s request to be assigned an official serial number for ballot placement, so we may immediately begin the petition collection process and thereby initiate efforts to generate substantial revenue that can be directed to Florida’s public education system – without raising taxes.”

Petition drives can often require over a million dollars in investments by boosters. The new Florida law that places a $3,000 limit on contributions to political committees will prove a significant roadblock. The committee is attempting to receive significant financial contributions before Thursday, when that new law is enacted.

Seminole Tribe Backlash

Of course, the Seminole Tribe is not thrilled about this recent development and legislative push by DraftKings and FanDuel. Seminole Gaming spokesman Gary Bitner called it a “political Hail Mary from out-of-state corporations trying to interfere with the business of the people of Florida.” This new amendment would require significant alterations to the already agreed upon compact with the Seminole Tribe.

John Sowinski, president of the group No Casinos, has spoken publicly against this betting proposal and opposed the Seminole compact. Both legislative plans will face hurdles in the form of federal legislative processes. Sowinski has especially been vocal against prop betting, which he says causes “troubling spikes in teen gambling and addictio,” something that causes “long-term social and economic costs that far outweigh any perceived benefits.”