Seminole Tribe sues DraftKings over alleged illegal sports betting

The Seminole Tribe of Florida has filed a lawsuit against DraftKings on October 8, aiming to halt operations the tribe claims qualify as illegal sports betting and divert revenue from its gaming activities and public services.

This 72-page lawsuit, submitted to the Broward County Circuit Court, also names GUS III LLC, the entity responsible for DraftKings Predictions. The tribe is challenging the company’s Pick6 fantasy contests along with its sports offerings via the DraftKings Sports & Casino app. The tribe asserts it holds exclusive rights to provide online sports betting in Florida as established by its gaming compact with the state in 2021.

In return for these exclusive rights, the tribe agreed to pay Florida at least $2.5 billion within the first five years of the compact, as outlined in the complaint. According to the lawsuit, “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 accuses DraftKings of offering products in Florida that mimic a licensed sportsbook, allowing wagers on game outcomes, point spreads, player performances, and parlays. The tribe contends that labeling these activities as prediction markets or fantasy contests does not alter their inherent function. Additionally, the lawsuit claims that DraftKings permits participation from customers aged 18 to 20, which is below Florida’s legal sports betting age of 21, and violates the compact by offering college player proposition bets.

The allegations include unfair competition, deceptive trade practices, and a civil racketeering claim against Robins, who the tribe asserts is overseeing the operations in Florida. The Seminole Tribe is seeking an injunction and the recovery of revenue and profits from DraftKings’ Florida activities. It emphasizes that any recovered funds would be directed towards consumer protection and problem gambling initiatives.

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