HOLLYWOOD, FLA. (WSVN) - A legal betting battle is brewing as two of the most popular sports betting apps head to court.
The Seminole Tribe of Florida filed a 70-plus page lawsuit against DraftKings Thursday in regards to sports betting in Florida.
This lawsuit comes about a month after DraftKings launched their platform in Florida, flooding TV and social media platforms, to promote and offer their sports betting platform to Floridians as a so-called prediction market or peer-to-peer betting, not a traditional sportsbook.
However, the Seminole Tribe filed suit, arguing that the company is operating an illegal sportsbook in the state of Florida, which they said violates the 2021 compact the state made with the tribe, that gave them exclusive sportsbook rights in exchange for a cut to fund public benefits.
In the suit, the tribe claims “Every wager… diverts betting from Florida’s regulated system into an underground, unregulated, and outlawed book.”
Florida Gov. Ron DeSantis spoke on the lawsuit, acknowledging that the tribe was given sweeping purview over that domain in the 2021 compact.
“They were given the purview on the sports betting,” said DeSantis. “[I haven’t] read the thing, I just read about it this morning but I think our agreement clearly contemplated that they would have the ability to run this in Florida.”
In response to Thursday’s lawsuit, DraftKings issued a statement to 7News, which reads in part:
“DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework… We remain confident in our legal position. “
South Florida attorney Eric Schwartzreich, who’s not associated with the case, said a critical point that will be litigated is DraftKings’ claims to being a prediction market that also operates within the realm of sports instead of just simply presenting traditional sports betting options.
“They have the exclusive right under this compact for sports betting and DraftKings is doing this but calling it a different thing. ‘Well, wait a minute, we’re not sports betting here, this is prediction market controlled by federal law, we’re not in violation of the state compact.’ And that’s the horse race, if you will, that’s the betting argument that is being made here,” said Schwartzreich.
DraftKings also pointed to several other companies that operate in Florida and offer similar prediction market options for bettors.
A decision has yet to be made on this issue, as it will go to court.
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