A Florida Senate committee passed a bill that proposes penalties for using inside information for sports betting, as well as engaging in online gambling the state’s Seminole Tribe doesn't offer.
Members of the Florida Senate's Regulated Industries Committee met Tuesday and favorably reported an amended version of Republican Sen. Corey Simon’s S.B. 1404 by an 8-0 vote.
The bill proposes several gambling-related penalties, including making it a third-degree felony to bet on an event knowing the results “are prearranged or predetermined.”
S.B. 1404 would also make "Internet gambling" and "Internet sports wagering" a misdemeanor offense.
The sun shines on sweeps
The bill's definition of internet gambling is playing a game "in which money or other thing of value" is won by chance and simulates "casino-style gaming," such as slot machines and table games. This could apply to sweepstakes casinos, in addition to offshore casino gambling sites.
S.B. 1404’s definition of internet sports wagering would also apply to betting money or any “other thing of value,” which could cover sweepstakes sportsbooks as well.
Sweeps use a “dual currency” system that lets people to play for free if they so choose, but also enables them to wager and win real money by buying virtual coins.
The bill adds that anyone who “operates, conducts, or promotes” internet gambling or internet sports wagering, or who helps support that iGaming, is committing a third-degree felony.
There is, however, one significant exception to the online gambling bans the bill proposed. That is, penalties don't apply to gaming activities conducted under a compact like the one the state’s Seminole Tribe has, making them the exclusive legal sports betting provider in Florida.
The Seminole Tribe offers online sports betting in Florida using their Hard Rock Bet brand. While they don't offer online casino gambling, it’s possible someday the tribe could.
The Seminole Tribe of Florida is set to discuss a compact deal in 2025 that would allow online casino gaming, per GLI Executive Gabriel Benedik; the Tribe previously removed iGaming provisions from the compact that permitted mobile sports betting
— Ryan Butler (@ButlerBets) December 13, 2024
In other words, S.B. 1404 proposes a crackdown on non-Seminole forms of online gambling. Supporters also filed similar bills in the Florida House of Representatives, although none made much progress yet. S.B. 1404 has been referred to two other Senate committees, which have still to consider it.
Even so, the bill is making progress as U.S. lawmakers and regulators are increasingly taking action to stamp out online gambling they view as illegal or unwanted within their borders. Several states, for instance, saw anti-sweepstakes proposals this year, including Maryland and New York.
Whether S.B. 1404 becomes law remains to be seen. However, the legislation also has several provisions related to in-person gambling, and it was those matters lawmakers discussed during Tuesday’s committee meeting.
'A growing crisis'
Simon, who is also a former NFL defensive lineman, told the committee the bill would make it a third-degree felony to operate a gambling house or mislead the public about the legality of gambling, among other things.
“Illegal gambling in Florida is a growing crisis,” the state senator said. “Illegal gambling operations are spreading across Florida, exploiting weak penalties to operate with little fear or consequences. Adult arcades with blacked-out windows are multiplying, run by criminal organizations that treat minor fines as the cost of doing business.”
The Florida Gaming Control Commission, Simon added, received thousands of complaints. The commission also discussed the problem of illegal online gambling during its meetings and backs the bill. Acting Executive Director Ross Marshman testified in support of the measure on Tuesday.
Interestingly, one of two amendments to the bill on Tuesday was to close a “loophole” in the statutory ethics requirements for the gaming commission.
Florida’s top gambling regulator became a FanDuel lobbyist. A bill would bar a repeat https://t.co/I3gM29J4Nx
— Miami Herald (@MiamiHerald) March 21, 2025
The bill now clarifies commissioners and staff cannot be employed with any entity conducting activities the regulator oversees for at least two years before or after their employment with the commission. This prohibition includes working with fantasy sports or sportsbook operators.
The amendment follows the Miami Herald's recent reporting on the commission’s first executive director, Louis Trombetta, going to work for FanDuel late last year.
Trombetta’s efforts at the commission included sending cease-and-desist letters to PrizePicks, Underdog, and Betr over their daily fantasy products, but not DraftKings or FanDuel, which “raised eyebrows at the time,” the Herald reported.
A Florida House lawmaker introduced legislation that would try to put the same "revolving door" prohibition in place. The sponsor, Rep. John Snyder, told the Herald the proposal wasn’t necessarily in response to Trombetta’s move, but more about fairness.
“Any time you have a regulator in a position to make significant decisions on the industry, I think it’s important they sit on the bench for a little bit before they get back into it,” Snyder told the newspaper.
