Seminole Tribe sues DraftKings over prediction markets
The Seminole Tribe of Florida has launched legal action against DraftKings, accusing the gambling operator of offering illegal sports betting through its prediction-market and fantasy sports products.
The lawsuit, filed in Broward County Circuit Court on October 8, names DraftKings, chief executive Jason Robins and GUS III LLC, which operates as DraftKings Predictions.
The tribe alleges that the company’s activities violate Florida gambling laws and undermine the exclusive sports betting arrangements established under its 2021 gaming compact with the state.
Under that agreement, the Seminole Tribe holds exclusive rights to operate statewide sports betting through its Hard Rock Bet platform.
The tribe argues that DraftKings is attempting to bypass those arrangements by offering products that function like conventional sports wagers while describing them as prediction contracts or fantasy sports contests.
Its 72-page complaint challenges both the company’s sports prediction contracts and its Pick6 fantasy product.
The tribe alleges that DraftKings’ products allow customers to wager on sporting outcomes and individual player performances without the protections required of Florida’s licensed sports betting operation.
Among the concerns raised are age restrictions and the availability of certain college sports player proposition markets.
Florida’s regulated sports betting market requires customers to be at least 21 years old, wth the complaint alleging that DraftKings permits participation by customers aged 18 to 20 through products that the tribe considers gambling.
It also argues that the company’s activities divert revenue from the regulated market and undermine payments supporting public services in Florida.
The Seminole Tribe is seeking an injunction preventing the challenged activities, along with declarations that the products violate state law and financial remedies relating to revenue generated in Florida.
DraftKings disputes the allegations.
A company spokesperson said its prediction market offering operates within the federal regulatory framework established by the Commodity Exchange Act.
The company also maintains that Pick6 is a peer-to-peer fantasy sports product based on predictions about individual athlete performances, rather than conventional sports betting.
DraftKings said it respects the tribe’s sovereignty but remains confident in its legal position.
The lawsuit arrives amid a broader dispute over prediction markets in the United States.
Companies offering sports event contracts argue that their products fall under federal commodities regulation, while state gambling authorities contend that the same activities should require local gambling licences.
Florida is particularly significant because of the Seminole Tribe’s exclusive agreement with the state.
The 2021 compact provides the tribe with statewide sports betting rights and includes substantial revenue-sharing commitments, with Hard Rock Bet currently operating Florida’s authorised online sportsbook.
