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Florida’s legal gambling market is flourishing, generating millions of dollars in revenue. But state officials say Florida and its taxpayers are losing millions more to a sprawling, largely unregulated shadow gambling economy operating alongside it.
Attorney General James Uthmeier has made dismantling that ecosystem a priority, intensifying enforcement efforts while pushing lawmakers to impose tougher penalties on illegal and legally ambiguous gambling platforms.
Legal betting didn’t eliminate illegal gambling — it changed it
Regulated online gambling in Florida is dominated by the Seminole Tribe’s Hard Rock Bet platform, which has delivered significant revenue to the state. At the same time, officials say it has coincided with the expansion of a parallel gambling ecosystem that is far harder to police.
That ecosystem includes illegal offshore gambling sites and brick-and-mortar casinos, as well as fantasy sports platforms and sweepstakes apps that operate in a gray legal area. Prediction markets such as Kalshi and Polymarket, though federally regulated, have also drawn scrutiny from state officials.
Together, these platforms have complicated enforcement of Florida’s gambling laws and renewed debate over whether the state’s legal framework is keeping pace with a rapidly evolving market.
Seminole Tribe’s gaming compact and its ripple effects
The Seminole Tribe’s state-sanctioned sports betting platform has generated hundreds of millions of dollars for Florida under the 2021 gaming compact. That agreement expanded the tribe’s gambling operations statewide, including online sports betting projected to generate about $4.4 billion in revenue by 2030.
Uthmeier has repeatedly defended the compact, arguing it offers a regulated alternative to illegal gambling while delivering a significant revenue share to the state.
“We stand by the compact with the Seminole Tribe,” Uthmeier told Florida Politics. “It’s been a huge success, and it’s a great way to ensure that Florida taxpayers are getting the benefit of a significant revenue share to the state through an application and gaming apparatus that is highly regulated, safe and free from illicit activities.”
Even so, officials acknowledge that the growth of legal betting has created opportunities for unregulated competitors to flourish.
When gambling violations turn into major cases
Over the past year, Uthmeier’s office has ramped up enforcement actions, often working alongside state and federal agencies.
The most high-profile case involved Osceola County Sheriff Marcos Lopez, who was charged for his role in what prosecutors described as a “massive Central Florida illegal gambling operation” that generated nearly $22 million in illicit revenue. The investigation involved the Florida Department of Law Enforcement and the US Department of Homeland Security.
Lopez faces conspiracy and racketeering charges and was suspended by Gov. Ron DeSantis on the day of his arrest. Uthmeier’s office has said illegal gambling operations are often linked to other serious crimes, including money laundering and human trafficking.
Different platforms demand different enforcement strategies
State officials are taking tailored approaches to different segments of the gambling market.
For illegal offshore online platforms such as MyBookie and Bovada, Uthmeier has said his office plans to disrupt payment processor servers. While calling it a major priority for 2026, he acknowledged the difficulty of the effort, likening it to a game of whack-a-mole.
The attorney general’s office has taken a more diplomatic approach with fantasy sports and sweepstakes casinos. It has issued subpoenas to several companies and plans to meet with industry leaders early in the year to hear their arguments and outline stricter guidelines for operating in Florida. While some companies dispute claims that their businesses are illegal, many have welcomed discussions with regulators and lawmakers.
Prediction markets present a more complex challenge. Operators argue they fall under federal oversight by the Commodity Futures Trading Commission, raising the possibility of a legal dispute over whether Florida gambling laws apply.
Seizures surge as regulators test the limits of enforcement
The Florida Gaming Control Commission has also stepped up enforcement, strengthening partnerships with local, state and federal law enforcement agencies. The commission reported 29 new memoranda of understanding with various agencies.
In 2025, the commission seized 6,725 slot machines and nearly $14.5 million from illegal casinos as part of “Operation Funny Money,” a sharp increase from 2024, when authorities seized 1,287 machines and about $7.1 million.
Lawmakers ask whether Florida’s gambling penalties still work
Uthmeier has argued that current penalties for illegal gambling — many of which are misdemeanors — fail to deter large-scale operations.
“They make the risk-reward analysis very imbalanced,” he said. “People stand to make tens of millions of dollars through these operations, and getting a misdemeanor is really just a slap on the wrist.”
Several bills advancing in the 2026 legislative session aim to strengthen enforcement.
House Bill 189, sponsored by Rep. Dana Trabulsy, a Republican from Fort Pierce, would overhaul state gambling laws by expanding regulatory authority across all forms of wagering and adding felony penalties for large-scale and repeat violations. The bill would also expand the authority of the Florida Gaming Control Commission.
House Bill 591, sponsored by Rep. Berny Jacques, a Seminole Republican, would create new felonies for gambling advertising, online gambling, game manipulation and transporting gamblers, while reclassifying many gambling-related crimes into higher felony tiers. Some lawmakers have warned the bill could have unintended consequences by sweeping in charitable events and legal activities.
Senate Bill 204, sponsored by Sen. Jennifer Bradley, a Republican from Fleming Island, focuses primarily on slot machines and amusement games and is awaiting its first committee hearing.
Why 2026 could redefine Florida’s gambling landscape
Jeremy Redfern, deputy chief of staff for Uthmeier, said enforcement efforts are expected to accelerate if lawmakers approve tougher penalties.
“Our office is working with the Florida Legislature to increase penalties and with the Gaming Commission to take down illicit markets,” Redfern told Florida Politics. “2026 will be a record year in the fight against illegal gambling and the other major crime it brings to our state.”
