Florida is missing out on a golden opportunity for tax collection as an agreement between the state and the Seminole Tribe was overturned by a Federal Judge. According to the Judge, this agreement violates not only Florida State law but also the Federal Indian Gambling Law.
However, when looking at all the newly licensed New York sportsbooks bonuses being grabbed up while this agreement is currently off the table, it looks like Florida may be seriously missing out on some tax collection opportunities.
Sports Betting in Florida Offers Tax-collection Opportunities
Governor Desantis described the judgment as something they anticipated to an extent, as the sports betting deal originates from Gov. Desantis & the Seminole tribe signing a new sports betting bill in 2021. Despite the signed agreement, there was the lingering uncertainty about allowing online gambling using the servers on specific land as this is still seen as an unsettled legal issue. Currently, the location of the servers that would be used violates the Indian Gaming Regulatory Act.
This one violation, however, puts Florida in a difficult position as US states like New York are currently creating a goldmine with a 51% gambling tax rate in New York for online sports betting. By legalizing sports betting, the state of New York now collects hundreds of millions of dollars of state tax every year. New York is a state with steep tax rates but still stands as an excellent example as to how Florida can benefit from legalizing sports betting Statewide.
Ruling Seen as Small Business-Owner Victory
After the Federal judge ruled against online sports betting in Florida, the decision was described as a victory for small-business owners in Florida. Ultimately, small-business owners that run operations like the Magic City Casino, FL, find the ruling fair and a great starting point for the free market to guide the development of gaming venues’ business operations.
These small-business and family-business owners view the judge’s decision as an acknowledgment of an IGRA violation.
What’s next?
Residents of Florida are still able to place their sports bets despite the federal judge’s ruling, which means that online gambling is now left largely unregulated and the future uncertain. For Florida’s government, this will remain an issue when it comes to the opportunity of collecting additional tax, and leaves the state far behind states like New York who are capitalizing on their legalization of online sports betting, especially with such a high taxation rate.
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