Florida Online Gambling Ban Bill Makes Progress in Senate

A bill to tighten regulations and increase penalties on illegal sports betting, internet gaming, and sweepstakes gaming in Florida has edged closer to becoming law. Sen. Corey Simon's Senate Bill 1404 (SB 1404) was reported by the Senate Appropriations Committee on Agriculture, Environment, and General Government.

The bill would criminalize online Florida sports betting and real-money online casinos as third-degree felonies, subjecting operators and players outside the Seminole Tribe's exclusive gaming compact with the state to harsher penalties. It also includes a de facto prohibition on sweepstakes casino-style gaming.

During the committee hearing, Sen. Simon argued that harsher penalties are required to curb the expansion of illegal gaming, which he argues diverts prospective revenue from the state. He further stated that absent legislative intervention, illegal gaming will continue to cannibalize legal markets and draw down the state's cut of gambling revenues.

The act specifies precisely what is meant by "Internet gambling". It applies to any casino game, whether virtual or not, in which the giving of money or other things of value is contingent on chance, regardless of any aspect of skill. These include virtual slots, video poker, and computer or mobile-accessed table games.

Similarly, "Internet sports betting" is the process of betting money or other valuable commodities on the outcome of sporting events or competitive games, whether human or animal.

The legislation keeps the legality of gaming operations conducted under the Seminole Tribe's gaming compact intact. The 2021 amended compact and the legally disputed compact grant the tribe a monopoly on offering particular types of gambling, including mobile sports betting, in Florida. 

More changes in the bill are likely

The bill does not address daily fantasy sports (DFS), which remain under separate consideration in the Florida Legislature. Another bill on DFS is reportedly in the pipeline. Some of our best sports betting sites also operate DFS sites.

Despite a positive report, some legislators were concerned about the bill's language. Sens. Jason W. B. Pizzo and Colleen Burton voted for the bill in committee but also expressed concerns about ambiguous language.

Sen. Burton, however, indicated that she would not vote for the bill in its current form if it were in its final committee reading. She cited further clarification on what would be banned under the pending legislation.

Outside the legislative arena, representatives of veterans' organizations, including the Veterans of Foreign Wars and the American Legion, also voiced opposition. They warned of a negative impact on electronic gaming machines in veterans' halls used for charitable fund-raising.

There remains uncertainty as to whether these machines would fall under the bill's ban, as they could either qualify as sweepstakes gaming or be interpreted as illegal gambling devices under the new definitions.

As the bill moves on to the Senate Fiscal Policy Committee, more amendments and clarifications are expected. Sen. Simon has shown an interest in cooperating on refining the language to ensure that the bill targets its intended activities without compromising legal charitable gaming or misinterpreting gray areas.

If it passes, SB 1404 would take effect on Oct. 1.