The other applicants included Hard Rock International, which had an agreement to operate a $125 million casino in Terre Haute before the state commission voted in June against renewing the casino license because the ownership group hadn´t hired an executive team or secured full financing after more than a year.
“When a federal statute authorizes an activity only at specific locations, parties may not evade that limitation by ‘deeming’ their activity to occur where it, as a factual matter, does not,” Friedrich wrote in her judgment.
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The state and tribe had argued that because the computer servers processing the bets would be on tribal lands, bettors could wager from their phone or kiosks at race tracks and non-Indian casinos anywhere in the state and meet the federal standard.
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The Terre Haute project has faced turmoil since early 2020 when state casino officials began investigating Spectacle Entertainment and then-CEO Rod Ratcliff after the filing of federal charges of illegal political campaign contributions involving a longtime Ratcliff business partner, former Spectacle vice president John Keeler.
Churchill Downs’ selection comes after the Terre Haute project was derailed amid an investigation into allegations of criminal and financial misconduct against top executives in an ownership group that was originally awarded the casino license in 2019.
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While the server for the betting app was on tribal lands, bettors had been able to place wagers anywhere in the state. Since Nov.
1, Florida residents had been allowed to make wagers on a betting app run by the Seminole Tribe.
In a decision that was handed down late Monday, Judge Dabney Friedrich ruled that Florida’s deal to give exclusive sports betting rights to the Seminole Tribe, essentially forming a monopoly on the industry in the state, was ruled to violate federal Indian gaming law.
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The deal also allowed the tribe to add craps and roulette to casino operations, but those activities have been halted as well. The terms of the deal required the Seminole Tribe to pay $2.5 billion to the state of Florida over a five-year span to be an exclusive sports wagering operator.