The battle between prediction markets and tribes took one other activate Thursday. The Seminole Tribe of Florida filed a lawsuit in state courtroom in opposition to DraftKings. The swimsuit alleges DraftKings’ prediction market choices, together with a Pick6 sport, violate the tribe’s unique compact with the state to supply on-line sports activities betting.
The tribe filed the authorized motion in Broward County. It claims that DraftKings CEO Jason Robins has mentioned its occasion contracts are “functionally identical” to the corporate’s sports activities betting operations in different states.
The tribe is asking for an injunction to forestall the corporate from working within the Sunshine State. It says DraftKings is working an unlawful sportsbook.
“Every wager that (DraftKings) 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 lawsuit says.
Seminoles Won Exclusivity In Court
After two years of authorized wrangling between state gaming regulators and prediction markets, this marks the primary time the Seminoles have moved in opposition to a platform. The tribe owns the Hard Rock gaming model, which operates casinos in Florida and different states.
It operates on-line sports activities betting by way of its Hard Rock Bet app.
In 2021, the tribe reached a take care of the state to be the only sports activities betting operator in Florida. Lawsuits adopted, however the Supreme Court in the end selected to not hear the case. That allowed a lower-court choice to stay intact, which supported the tribe’s unique proper to supply sports activities betting in Florida.
The gaming teams concerned within the lawsuits reached an settlement with the Seminoles in October 2024 to finish litigation.
DraftKings Denies Allegation
Prediction markets contend their sports-event contracts are totally different from conventional sports activities betting. They say they’re regulated solely on the federal stage by the Commodity Futures Trading Commission. DraftKings rejected the competition that the corporate is working illegally in Florida.
“DraftKings’ prediction markets offering operates in accordance with applicable law and the federal regulatory framework established under the Commodity Exchange Act,” an organization consultant instructed native media.
“Furthermore, DraftKings Pick6 is a peer-to-peer fantasy sports variant centered on a simple ‘more or less’ mechanic tied to individual athlete performance metrics and is not sports betting. While the company has deep respect for the Seminole tribe’s sovereignty, we remain confident in our legal position.”
Gaming legal professional Daniel Wallach predicted the corporate would try to have the swimsuit moved to federal courtroom, “similar to what Kalshi has done whenever it’s been sued in state court over prediction markets. But the request for injunctive relief may be designed to prevent removal.”
Gov. Ron DeSantis (R), who was key in negotiating the Seminole’s sports activities betting compact, appeared to sign his help for the tribe’s transfer.
“They were given the purview on the sports betting,” the governor mentioned. “I have not read the thing. I just heard about it this morning. But I think our agreement clearly contemplated that they would have the ability to run this in Florida,”
Other Tribes Ink Deals With Kalshi
Tribal gaming teams throughout the nation have typically opposed prediction market growth. However, there seems to be a rising divide amongst Native American teams on the problem.
Four tribes introduced partnerships with Kalshi this week. Those embrace: the Alabama-Quassarte Tribal Town of Oklahoma; and the Greenville Rancheria, the Kletsel Dehe Wintun Nation, and the Alturas Indian Rancheria, all of California. This adopted the Tunica-Biloxi Tribe of Louisiana signing a take care of the corporate in September.
The Kletsel Dehe Wintun Nation struck a take care of a significant sweepstakes operator in August 2025. The state banned sweeps quickly after.
Kletsel Dehe CEO Eric Wright mentioned these sorts of agreements have the potential to usher in extra income for tribes not at present concerned in gaming.
“For tribes like ours – far from high-traffic tourism corridors – geography has always limited traditional economic development,” he mentioned throughout the sweepstakes on line casino debate. “Large, well-established gaming tribes already profit from these geographic benefits and many years of success.
“It is self-serving for them to advocate for policies that restrict emerging digital commerce opportunities for others, effectively holding smaller and less-advantaged tribes hostage to their location.”
