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University of Miami Business Law Review

Document Type

Notes and Comments

Abstract

Sports betting in the United States has exploded in recent years, with a record–breaking $11 billion in revenue in 2023. This growth has inspired state governments to try to leverage this lucrative business. One recent development is the 2021 Gaming Compact between the Seminole Tribe of Florida and the state of Florida. The Compact represents a milestone towards exclusivity in mobile gaming for Native American tribal nations. Under the Compact, the Seminole Tribe receives sports betting exclusivity, for both retail sports wagering and online sports wagering across the state of Florida, in exchange for a revenue sharing arrangement—unlike any other form of exclusivity. In the landmark case West Flagler Associates v. Haaland, the D.C. Circuit Court of Appeals upheld the Compact, ruling that any bet made off tribal land, but processed through servers located on tribal land, can be legally considered within tribal jurisdiction. This case solidified the Compact’s legality after a prolonged legal battle.

This ruling paves the way for sports betting legalization in other states with Native American tribal nations, shifting the balance of tribal–state relations throughout the country. Although the economic rewards of such arrangements are attractive, there are serious secondary concerns. One main worry is monopolistic control, detrimental to consumers through limited competition, suppressed market innovation, and increased costs. Although tribal sovereignty is important, policymakers need to also consider consumer protections as a top priority. Without proper regulation and oversight, sports betting offerings could yield predatory practices that exploit vulnerable customers. As more states move to legalize sports betting, regulators must guarantee competitive and fair markets for all consumers.

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