West Flagler agrees not to sue Seminoles again over game

After years of legal challenges, the Seminole Tribe of Florida announced a new partnership with West Flagler and Associates on Monday, Oct. 28, to introduce jai alai on the tribe’s Hard Rock Bet app.

The statement came four months later US Supreme Court refused to hear West Flagler v. U.S. Department of Justice (DoJ). This decision allowed the appeals court decision to stand. The decision essentially made it legal for the Seminoles to offer digital sports betting anywhere in Florida.

West Flagler and the Seminoles agreed to “refrain from engaging in any future litigation related to the Seminole Tribe’s gaming operations,” according to the statement. The announcement was a stunning turnaround for both parties. West Flagler, which owns two Florida parimutuels, spent three years and untold dollars in federal and state court battles seeking to declare the 2021 Seminole-Florida agreement void.

“As I said when this case first started, West Flagler had no chance of prevailing,” NOVA Southeastern constitutional law professor Bob Jarvis told iGB. “Yet he fought the Seminoles in both federal and state courtrooms in Florida and the District of Columbia (including the U.S. Supreme Court), to no avail. One wonders why West Flagler is so stubborn; what advice he received from his lawyers; and whether he now regrets his decision to spend so much money on a pursuit that probably will not succeed.”

Seminole partners must pay 60% of revenue

Compact allows bets to be considered placed at the place they are taken. Any bet placed in Florida that flows through a server in Indian Country is deemed to have been placed there. Around the same time, state lawmakers agreed to expand the tribe’s gaming exclusivity to include digital betting.

It is understood in the industry that the legalization of sports betting is the basis of online casino. compact does not explicitly allow for online gambling. But the phrase “any new game authorized by Florida law for any purpose by any person” is part of the definition of “covered games.” This means that if the state legalizes online casino, the tribe can offer it as well.

“With this agreement, the Seminoles can now fully move forward with their plan,” Jarvis said. “So, we will soon see the Tribe return to the state and begin negotiating for full mobile betting. …The question will be: How much does Florida require for a full mobile betting permit?”

Under the agreement, the Seminoles must pay the state a revenue share of $2.5bn (£1.9bn/€2.3bn) over five years. This is due to profits from sports betting and real casinos. In addition to Hard Rock Bet, the tribe operates six casinos in Florida.

Businesses are prohibited from offering online betting in Florida unless they want to partner with the Seminoles. To do this, commercial operators must pay the tribe 60% of gross gaming revenue. They also need to put their software on the Seminole server.

Hard Rock’s Allen calls deal ‘win-win’

West Flagler’s deal with the Seminoles is the first of its kind. Seminole Gaming CEO Jim Allen told CNBC earlier this month: The company is open to partnership. But major operators have previously told iGB that the cost and necessity of sharing a technology stack are non-starters.

Allen called the agreement a “win-win” for both parties and praised a new “cooperative relationship.”

He continued: “Instead of engaging in years of additional litigation, this agreement will allow the parties to work together to promote Jai Alai, which has played a significant role in Florida’s gaming scene for nearly 100 years.”

Under the agreement, Hard Rock Bet will offer jai alai betting starting in the first quarter of 2025.