Seminole Tribe Sues DraftKings for Illegal Sports Betting in FL

The Seminole Tribe of Florida filed a 72-page lawsuit Thursday in Broward County Circuit Court accusing DraftKings and its CEO, Jason Robins, of operating an illegal sports betting business in the state. The suit alleges DraftKings violates Florida law and the terms of the 2021 Gaming Compact between the state and the Tribe.

The lawsuit specifically targets DraftKings Pick6 and sports offerings available through the DraftKings Sports & Casino app to Florida users. The Tribe contends these offerings function as unlicensed sports betting, despite DraftKings' claims that its app provides access to prediction markets, free-to-play pools, pick'em contests, and horse racing, while stating its Sportsbook and Casino are unavailable in Florida. The Tribe disputes this, asserting Florida users can wager on moneylines, point spreads, and game totals through the app.

DraftKings publicly states its prediction markets operate legally and within the federal regulatory framework. A company spokesperson described DraftKings Pick6 as a peer-to-peer fantasy sports variant focused on athlete performance metrics, not sports betting. "While the company has deep respect for Seminole Tribe’s sovereignty, we remain confident in our legal position," the spokesperson said Friday.

The Tribe seeks a court declaration that DraftKings Pick6 and the app's sports betting features are illegal under Florida law. They also want an injunction to prevent DraftKings from operating, advertising, or processing sports wagers in Florida and to surrender profits allegedly earned from its Florida operations. The Tribe indicated recovered funds would prioritize consumer protection and problem gambling treatment programs.

This action arises within the context of the 2021 Gaming Compact, which grants the Seminole Tribe exclusive rights to online sports betting in Florida through Hard Rock Bet. The compact requires the Tribe to share gaming revenue with the state. The lawsuit asks a state court to determine if DraftKings' products, marketed as fantasy contests or prediction markets, fall outside the compact or constitute unauthorized sports betting.