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Q&A – Seminoles Shut Sports Betting Down In Florida. What Happens Now?
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Today’s entry: A couple sports betting questions for you. I’d used the Seminoles sports betting app forthe short time it was up. It worked really well and was fun while it lasted! I’d heard you say it probably wouldn’t work out in the courts so I’m not surprised it’s shutting down (I was hoping you were wrong this time!). I got the notice that I’ll be getting my money back but my questions are these. What’s most likely to happen now and when is the soonest you think we could see sports betting back? It seems like this launch by the Seminoles was a good test for what’s to come if nothing else. Also, I haven’t heard anything about taxes. Is that something I should be concerned with?
Bottom Line: So yes, over the weekend the Seminoles shut down the sports betting app they soft launched five weeks previous on November 1st. The announcement came a week and a half after a federal judge didn’t just legally scrap sports betting in Florida, but the entire newly ratified Seminole Compact which included it. As you noted, I’d regularly mentioned the likelihood that the courts would strike down sports betting in Florida based on 2018’s Amendment 3, which removed the right to make adjustments with gambling in Florida from the Legislature in lieu of what would have to be a constitutional amendment ratified by voters. On May 13th, after the conclusion of the special session approving the new Compact, I said this:
- It’s increasingly evident most Floridians who voted for 2018’s Amendment 3 didn’t understand what they were voting for. And if the new compact doesn’tcome to pass that Amendment is the most likely reason why.
And on June 24th in a story I entitled The Writing Is On The Wall For Sports Betting In Florida brought you this:
- For all of those ready to spike the ball in the endzone in celebration of the State’s passage of sports betting...hang on to that ball or you’re liable to be as premature in your celebration as Leon Lett in the Super Bowl. DraftKings and FanDuel are teaming up for a newly introduced proposed amendment for 2022’s ballot which would allow sports betting in Florida. There’s only one reason that happens. Florida’s recently ratified Seminole Compact with Sports betting that’dbegin October 15th is going down in court.
So yes, clearly what’s happened here is what I expected and have reported on from the beginning. And that leads to me addressing your question as to what’s most likely to happen next with sports betting in Florida. Nothing until at least January of 2023. In the meantime, the best path forward for the prospect in Florida remains the proposed constitutional amendment from Florida Education Champions, the DraftKings and FanDuel backed PAC. Again, DraftKings and FanDuel didn’t start this PAC and fund it with $60 million because they had too much time on their hands and $60 mil to burn. They always expected this would be the case too. If they get the needed signatures to have the Florida Supreme Court consider the proposed amendment and if the amendment would receive at least 60% support next November sports betting would be back in Florida in January of 2023. As for your tax question...
Yes, it might have only been up for five weeks, and yes, you might have be getting your money back,but yes, you’re responsible for taxes pertaining to any winnings you might have had. Here’s how that works. Gambling losses aren’t tax deductible, however one may use tax losses from sports betting if you had any, to offset other gambling winnings you might otherwise have. If you posted gains, you’re responsible for reporting them to the IRS via a W-2G tax form. Gambling winnings are taxed as ordinary income. Importantly, your winnings may be reported by the Tribe to the IRS. There are IRS legal reporting requirements which begin to kick in with winnings as low as $1,200 for operators. The Seminoles specifically keep Win/Loss statements for their customers. You’re able to request one at any time and you can do so online or by calling.
So, there you have it. It may not be the news you want to hear – any of it – but it’s the reality on the ground in Florida. For those who are desirous of pursuing the proposed constitutional amendment to legally bring sports betting to Florida... Florida Education Champions are still short of the 891,589 signatures needed for high-court consideration. You can submit an online request to sign the petition.