Can't Access Hard Rock Bet From Florida Anymore? The Nightmare Could Become Reality

Imagine thousands of folks waking up one morning prepared to make their March Madness bets.  They go to log into their Hard Rock Bet accounts and receive the dreaded "Access Denied" message.  This horrifying nightmare could actually happen if a group opposed to Florida's exclusive compact with the Seminole Tribe gets their way.  One thing you won't have to worry about is getting paid at least.  Should the app have to shut down, anything owed to you will be returned.

The Seminoles are as much a part of the Florida landscape as Disney.  Their Seminole Hard Rock Casino with its new landmark, the Guitar Hotel, is a beloved centerpiece of Hollywood, Florida, just outside the Fort Lauderdale International Airport.  They operate six other casinos throughout Florida, each of which can offer sports betting.  The Seminoles well-produced Hard Rock Bet commercials homespun and not nearly as annoying as all those DraftKings and FanDuel ads that just happen to broadcast here despite neither site having authorization to take bets in Florida. 

An appellate court ruled in favor of the compact and sided with the Seminoles claim that mobile bets are taking place on a server based on tribal land, even if the person making said bets has not left his or her own bedroom.

In 2000, Jay Cohen went to prison for making the same argument.  The judge in that case ruled bets were placed on US soil, not on the World Sports Exchange server in Antigua.  We only missed one day of that trial and we were present when the judge asked a "non expert" how the internet worked in terms of the sequence of communications.  It was farcical to say the least.

Nevertheless, the decision was precedent setting.  A federal court had already determined that bets placed in one's own living room take place in one's own living room.

When the appellate court recently ruled otherwise, and in favor of the Seminoles, they essentially paved the way for offshore sportsbooks to operate in Florida provided the servers are located outside the state.  Most are located in North American nations like Costa Rica and Canada (The Kahnawake Reservation outside of Montreal).  BetOnline has a server in Panama City..... not the Panama City in Florida, but the beautiful North American country of Panama. 

Sportsbooks that operate from the United States like DraftKings and FanDuel, in theory, can take bets from those in Florida and claim those bets are taking place on servers in Massachusetts perhaps.  They won't as not to upset state regulators elsewhere.

The US Supreme Court could soon take on this matter, though they only consider around 1 percent of cases annually.  Two of the tribe's competitors filed the suit.

The AP's Mike Schneider writes:

A decision by the nation's highest court would be of “massive importance” for the future of online gaming across the U.S., since leaving in place an appellate ruling in the tribe's favor would set a precedent for other end-runs around state prohibitions against gaming off tribal lands, said the firms, West Flagler Associates and Bonita-Fort Myers Corporation, which operate racetracks and poker rooms in Florida.

It's unclear if attorneys for either company even realize the precedent is already in place a la USA vs. Jay Cohen.  There doesn't appear to be any mention of the case.

But there is also the issue of a 2018 amendment to the Florida Constitutions that gives voters the power to determine any type of gambling expansion in the state.  It's hardly a stretch to suggest that mobile sports betting is a form of gambling expansion.

DeSantis' attorneys claim that sports betting was never mentioned as part of the amendment and is therefore not considered a form of "casino gambling".

The full text of the amendment is as follows:

(a) This amendment ensures that Florida voters shall have the exclusive right to decide whether to authorize casino gambling in the State of Florida.

This amendment requires a vote by citizens’ initiative pursuant to Article XI, section 3, in order for casino gambling to be authorized under Florida law. This section amends this Article; and also affects Article XI, by making citizens’ initiatives the exclusive method of authorizing casino gambling.

(b) As used in this section, “casino gambling” means any of the types of games typically found in casinos and that are within the definition of Class III gaming in the Federal Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. (“IGRA”), and in 25 C.F.R. §502.4, upon adoption of this amendment, and any that are added to such definition of Class III gaming in the future. This includes, but is not limited to, any house banking game, including but not limited to card games such as baccarat, chemin de fer, blackjack (21), and pai gow (if played as house banking games); any player-banked game that simulates a house banking game, such as California black jack; casino games such as roulette, craps, and keno; any slot machines as defined in 15 U.S.C. 1171(a)(1); and any other game not authorized by Article X, section 15, whether or not defined as a slot machine, in which outcomes are determined by random number generator or are similarly assigned randomly, such as instant or historical racing.

As used herein, “casino gambling” includes any electronic gambling devices, simulated gambling devices, video lottery devices, internet sweepstakes devices, and any other form of electronic or electromechanical facsimiles of any game of chance, slot machine, or casino-style game, regardless of how such devices are defined under IGRA. As used herein, “casino gambling” does not include pari-mutuel wagering on horse racing, dog racing, or jai alai exhibitions. For purposes of this section, “gambling” and “gaming” are synonymous.

(c) Nothing herein shall be deemed to limit the right of the Legislature to exercise its authority through general law to restrict, regulate, or tax any gaming or gambling activities. In addition, nothing herein shall be construed to limit the ability of the state or Native American tribes to negotiate gaming compacts pursuant to the Federal Indian Gaming Regulatory Act for the conduct of casino gambling on tribal lands, or to affect any existing gambling on tribal lands pursuant to compacts executed by the state and Native American tribes pursuant to IGRA.

(d) This section is effective upon approval by the voters, is self-executing, and no Legislative implementation is required.

(e) If any part of this section is held invalid for any reason, the remaining portion or portions shall be severed from the invalid portion and given the fullest possible force and effect.

In an odd twist it was the Seminoles and Disney that worked together to get this ballot initiative passed.

Indeed, there is a very real chance that Hard Rock Bet may go away in Florida, at least until voters have the opportunity to welcome them back.  Sports betting, after all, has become an integral part of casinos across the US now.

This is the same Supreme Court that abolished prior sports betting prohibition back in 2018, thus opening the flood gates for states to offer the activity.  We're not sure if they would even consider the 2000 Jay Cohen ruling, or if it's even on the table.  Clearly the concept of bets taking place on a server where the activity is deemed to be legal is one that's favorable not just the Seminoles. 

- Chris Costigan, Gambling911.com Publisher