Millions of tax dollars could have been collected this year from legal Florida sports betting. However, despite the success of many professional and collegiate teams in Florida in 2023, the state did not benefit financially. The Miami Heat and Florida Panthers reached the Eastern Conference Finals, generating significant interest in the NBA and NHL in southern Florida and throughout the state. Additionally, two Florida schools, Miami and Florida Atlantic, made it to the Final Four in men’s March Madness. In January, the Miami Dolphins played their first NFL playoff game in six years. Furthermore, the Tampa Bay Rays have the best record in baseball and are on pace to set a home run record. Despite all of these accomplishments, the state has not generated any tax revenue from legal Florida sports betting.
Exactly why sportsbooks aren’ t reside for Warmth, Panthers achievement in California
Currently, sports betting is not legal in California. In 2021, there was a brief period when the Seminole Tribe signed a gaming compact that allowed them to offer sports betting through their Hard Rock Sportsbook Florida app. However, the app was shut down after a federal judge ruled that the gaming compact violated the Indian Gaming Regulatory Act. The Seminole Tribe has appealed the ruling and a decision is expected soon. If the federal judge’s decision is repealed, the Seminole Tribe may be able to offer their sportsbook online and in-person.
The amount of money is Oregon losing?
Certain sports betting regulations have yet to be contested in Florida, so it’s difficult to speculate on the amount of tax revenue that has been lost without a legal market. However, the gaming compact in question had the potential to generate $2.5 billion for the state in the first five years and could have been worth as much as $20 billion in tax revenue over the course of 30 years. The compact was halted after a court found that it violated the rights of non-tribal gaming companies and may also conflict with federal tribal laws.
If Florida were to establish a sports betting industry, it has the potential to be as large as Pennsylvania or even New York. With a population of 22 million people, Florida is slightly larger than New York but falls short of Pennsylvania’s population of nearly 13 million. In 2022, Pennsylvania generated over $400 million in sports betting revenue, resulting in tax revenue of over $130 million. New York taxes sports betting operators at the highest rate in the country, 51% on adjusted gross revenue. If Florida were to adopt a similar tax rate, its sports betting industry could potentially generate around $20 million in tax revenue per month
The missing year to obtain Florida activities wagering
There’s no guarantee that betting on the Heat or the Panthers would have generated substantial tax revenue. However, the success of local sports teams can fuel interest in sports betting and considering the winning streak that Florida teams are on, it’s likely that 2023 would have been an exceptional year for sportsbooks in the state.
California and Texas, being the most populous states, also generate significant interest in their sports betting markets. In 2022, California voters rejected two ballot proposals that would have legalized online and retail sportsbooks. In Texas, a state constitutional amendment would be required to allow a referendum for voters to approve or disapprove of sports betting. At present, there isn’t enough political support for such a move.
Florida may see developments in sports betting in 2023 if the court releases its ruling on the Seminole Tribe’s gaming compact within the next seven months, as expected. The outcome of that ruling could have implications for the future of sports betting in the state.
Kemudian Holmes is a Staff Writer for PlayFL with a wealth of experience under his belt. Dan has written several books about sports and has previously worked for the National Baseball Hall of Fame and Major League Baseball. He has extensive knowledge covering the development of gambling in other states, including Ohio, Massachusetts and Maryland. Currently, Dan is residing in Michigan with his family.
