The Seminole Tribe of Florida and the gaming operators that sought for three years to stop the tribe from offering online sports betting in the Sunshine State announced earlier this week they have put an end to their legal wrangling and will forge a new path as partners.
In the announcement released on Monday, West Flagler Associates and its related entities agreed not to participate in any further legal challenges over the tribal nation’s gaming operations. In return, tribal leaders will allow wagering on West Flagler’s Battle Court Jai Alai on the Hard Rock Bet Florida sportsbook.
Jim Allen, Seminole Gaming’s CEO, called the agreement “a win-win” for both sides.
“This agreement establishes a relationship of collaboration among the Seminole Tribe and West Flagler in the State of Florida,” Allen said. “Rather than engaging in years of additional litigation, this agreement will allow the parties to work together to promote Jai Alai, which has played an important role in Florida’s gaming landscape for nearly 100 years.”
It’s expected that Hard Rock will begin offering markets on jai alai beginning early next year.
What Is Jai Alai?
Jai Alai is played with a ball on a three-walled court. Individuals or two teams play on the court, with one player serving off the front wall to other players behind him. All players must catch and throw the ball with a cesta, a curved scoop tied to an arm. The catch and throw also must take place in one fluid motion.
It’s a very fast-paced game, with the hard rubber ball traveling at speeds of 180 miles per hour or faster. Traditionally, jai alai has been a parimutuel betting market, but some sports betting operators, including FanDuel, are offering fixed-odds markets on matches in select states.
“We are thrilled to be partnering with the Seminole Tribe in support of their gaming operations in Florida and to promote Jai Alai, which has been a critical component of Florida’s gaming industry since the 1920s,” said Isadore Havenick, West Flagler Associates’ principal owner, in a statement. “We are proud that Jai Alai will be featured on the Hard Rock Bet app, and we look forward to developing a strong partnership with the Seminole Tribe.”
Havernick’s family owned the Magic City Casino, previously a dog track, since the 1950s until the Poarch Band of Creek Indians purchased it for $96 million last year.
The History Of The West Flagler Lawsuit
The court battle began more than three years ago after the DeSantis Administration and the Seminole Tribe signed off on an amended gaming compact. That deal allowed the tribe to build additional casinos, offer roulette and craps and operate retail sportsbooks and a mobile sports betting app statewide. In return, the state would receive payments from the tribe, including a minimum of $500 million annually during the first five years of the 30-year pact.
West Flagler, which owned the Magic City Casino at that time, filed lawsuits in both state and federal courts to challenge the compact. West Flagler and Bonita-Fort Myers Corp, an affiliated company that operates a poker room in Bonita Springs, claimed the compact violated state and federal gaming laws. In particular, the commercial gaming operators said the tribe could not take bets statewide.
While a federal district judge initially ruled in West Flagler’s favor in its case against the federal government in November 2021, both the tribe and the government appealed. The appellate court overturned the lower court’s decision, and earlier this year, the U.S. Supreme Court chose not to hear the case after West Flagler’s attorneys sought its review.
Could There Be More?
What Monday’s statement did not include is whether West Flagler would become a Florida sports betting operating partner with the tribe.
As part of the compact agreement with the state, the Seminole Tribe agreed to establish a “hub-and-spoke” network with parimutuel operators. That network would allow parimutuels to host kiosks at their establishments. In return, the tribe would receive 40% of the revenues generated at those locations.
Some partnerships have already been established, including Tampa Bay Downs and Hialeah Park Casino.
A Seminole Tribe representative told FloridaBet.com that a kiosk partnership between the tribe and West Flagler and Monday’s announcement were “separate topics.”
USA Today photo by Meghan McCarthy.
