The Seminole Tribe of Florida has initiated a lawsuit against DraftKings and its CEO, Jason Robins, asserting that certain products from the company amount to illegal sports betting, which is undermining both the Tribe’s gaming operations and state government services. Filed on October 8 in Broward County Circuit Court, the 72-page complaint also names GUS III LLC, operating DraftKings Predictions, and targets the company’s Pick6 fantasy contests and offerings through the DraftKings Sports & Casino app.
The Tribe maintains that it holds exclusive rights to provide online sports betting in Florida due to a 2021 gaming compact with the state, which requires it to contribute at least $2.5 billion over the first five years. The complaint claims that DraftKings’ actions divert essential revenue from regulated channels to an unregulated market, leading to loss of consumer protections.
Key allegations include:
– DraftKings operating a system that replicates a licensed sportsbook, despite labeling it as prediction markets or fantasy contests.
– Acceptance of customers aged 18 to 20, contrary to Florida’s minimum sports betting age of 21, and offering college player prop bets, which violate the compact.
– The Tribe is pursuing an injunction and seeks to recover profits from DraftKings, aiming to use any recovered funds for consumer protection and problem gambling initiatives.
In response, DraftKings has rejected the allegations, stating that their prediction markets are in line with legal standards and framing Pick6 as a peer-to-peer fantasy sports game, not sports betting. The company expressed confidence in its legal standing while respecting the sovereignty of the Seminole Tribe.
