Florida courts recently sided with state regulators to uphold the decision that “pre-reveal” electronic gaming machines found in bars are to be classed as illegal slots. The initial decision by a circuit judge was upheld by the 1st District Court of Appeal’s 3-judge panel.
The decision was made as the games are said to contain an element of chance, despite previewing the outcome, and the use of RNGs (random number generators) was also factored into this argument. Slots betting is only permitted in the states’ licensed land-based casinos, with no legal online operations permitted. However, offshore alternatives like Bovada are available.
Offshore casinos can be accessed by Florida consumers as only the operation in state lines is prohibited. This means that offshore casinos’ licenses in other regions can be played by Floridians, and you can read more these alternatives and their benefits here.
This could be good news for the state’s 15 casinos, which have an economic impact of almost $13 billion, support nearly 73,000 jobs, and generate over $2 billion in tax revenue every year. In particular, Florida’s slot machine tax of 35% supports the Department of Education’s Educational Enhancement Trust Fund.
The original decision to ban the games was challenged by their developer, Blue Sky Games, and distributor, Gator Coin. The most recent ruling that went against the machines stated that slot machines can be defined by users winning prizes of value by chance or unpredictability. While pre-reveal games are shown the first game’s outcome in advance, subsequent game results are not shown.
Circuit Judge John Cooper of Leon County initially backed the argument by Gator Coins and Blue Sky Games, but reversed his decision after the involvement of the Seminole Tribe of Florida, operators of Florida casinos.
This is not the first legal battle that the Seminole Tribe has been involved in in regards to gambling in Florida. A 2021 state compact with the tribe saw the legalization of online sports betting, with the Seminole Tribe teaming up with Hard Rock Bet to launch an app. A challenge was launched by racetracks and poker room operators in the state, with claims that the compact gave the tribe a monopoly and violated the Indian Gaming Regulatory Act.
It was argued that gambling must take place on tribal lands, and the online sports betting app would contravene this. While servers would operate on tribal lands, consumers would be able to place wagers anywhere in the state.
Further challenges have emerged in recent months, with the Protect the Constitution LLC group claiming that the compact violates a constitutional amendment that was made in 2018 that requires any casino gambling expansions to pass a public referendum.
The legal disruptions to gambling in Florida have caused financial harm to operators, but the potential of a regulatory framework that covers all the bases and provides the stability needed for growth is something that Floridians can look forward to in the future.
