Seminoles Sue DraftKings, Claim Company Runs Illegal Sports Betting Business in Florida

The Seminole Tribe of Florida has filed a complaint against DraftKings and its founder and CEO, Jason Robins, on allegations that the interactive gaming company is operating an illegal sports betting business. A screengrab of the Seminole Tribe of Florida’s lawsuit against DraftKings on allegations that the company is running an illegal sports betting business. The screenshot shows marketing materials from DraftKings Predictions advertising sports trading. (Image: Seminole Tribe of Florida v. DraftKings, Inc., Jason Robins) Filed in Florida’s 17th Judicial Circuit Court in Fort Lauderdale, attorneys representing the Seminole Tribe contend that DraftKings is running an illegal, unlicensed sports gambling platform under the guise of a federally regulated prediction market. Defendants openly advertise that they offer a sportsbook throughout Florida. But they hide from the public that their sportsbook is illegal,” the Seminoles’ complaint begins. “Every wager that Defendants now accept through their illegal sportsbook siphons away revenue that funds both the Tribe’s and Florida’s public programs and government services, diverts betting from Florida’s regulated system into an underground, unregulated, and outlawed book, and deprives the Floridian who places such a bet of the consumer protections guaranteed by Florida law,” the complaint continues. Seminole Compact In 2021, Florida Gov. Ron DeSantis (R) and the Seminoles amended the tribe’s Class III gaming compact, pursuant to the Indian Gaming Regulatory Act (IGRA), to include new house-banked games and the exclusive rights to operate online sports betting. The state and tribe prevailed in their defense that the hub-and-spoke model, where online sportsbook computer servers remain on sovereign Seminole land, constituted tribal gaming under IGRA. The Seminoles, in exchange for a minimum payment of $2.5 billion to the state over the compact’s first five years, were granted the exclusive rights to online sports betting. The tribe, however, alleges that its Hard Rock Bet mobile sportsbook isn’t free of competition because DraftKings Predictions is functioning as an illegal online sportsbook. The tribe’s complaint says Robins has readily acknowledged that DraftKings Predictions is nearly identical to DraftKings Sportsbook. The Seminoles argue that after DraftKings spent many millions unsuccessfully funding campaigns to legalize commercial sports betting in Florida, the company decided to bet on an illegal sportsbook masquerading as a financial prediction market. Tellingly, Defendants deliberately withhold their Illegal Sports Gambling Offerings from States where DraftKings holds a [sports betting] license, fearing that launching in those States would, in Robins’ words, ‘upset regulators that we have great relationships with.’ Defendants, by contrast, have no issue undermining the Compact and Florida law,” the Seminoles’ complaint alleges. The Seminoles are asking the court for a declaratory judgment finding that DraftKings Predictions is an illegal sportsbook under Florida law and an injunction barring the platform from operating in the state. The tribe additionally seeks restitution and disgorgement, plus nominal damages, attorneys’ and court costs, and any other relief the court deems appropriate. DraftKings Response DraftKings quickly responded to the Seminole lawsuit. The company defended its business in Florida, citing its prediction market license from the Commodity Futures Trading Commission (CFTC). DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act. While the company has deep respect for Seminole Tribe’s sovereignty, we remain confident in our legal position,” a DraftKings spokesperson said. DeSantis weighed in on Thursday (Oct. 8), saying federal courts and lawmakers need to quickly resolve the dispute about whether prediction markets can offer trading on sports events. The post Seminoles Sue DraftKings, Claim Company Runs Illegal Sports Betting Business in Florida appeared first on Casino.org.