The impasse over the Florida House and Senate gambling bills has left numerous issues in limbo which could be decided by the courts.
For example, a new deal with the Seminole Tribe could have brought the state $3 billion over seven years. A portion of a 2010 compact giving the Seminoles exclusive rights to offer banked card games like blackjack expired in 2015. The state sued to shut the games down since the compact had expired. But a federal judge ruled the tribe could continue to conduct the games for another 20 years since the state violated the exclusivity provisions by allowing parimutuel cardrooms to offer lucrative designated player games. The state is appealing the decision.
Equally important is the eagerly awaited decision of the Florida Supreme Court on whether parimutuel facilities can add slots in counties where voters have approved the machines, bypassing the legislature. Gretna Racing, a small horse racetrack in Gadsden County filed the suit which could impact Brevard, Duval, Hamilton, Lee, Palm Beach, St. Lucie and Washington counties, where voters also have approved slots.
This issue was central to the impasse between House and Senate negotiators. Senate President Joe Negron said the will of the voters should be honored, and House Speaker Richard Corcoran said allowing slots in those counties would be expanded gambling.
Allowing slots outside of Broward and Miami-Dade counties could affect the revenue-sharing agreement with the Seminole tribe. Attorney John Lockwood, representing a variety of parimutuels, said, “All parties involved would like to see a resolution of this issue. They just have different visions of what that resolution should be.”
Attorney Marc Dunbar, also an owner of the Gretna racetrack, added, “When you don’t have certainty, particularly around the Seminole Tribe’s compact and what is legal and what is illegal gambling in Florida, you really don’t get the meaningful capital investment that could turn some of these properties into destination properties. It guarantees to the policy-makers that you arguably have the kind of gambling that you don’t want to have, the kind that preys primarily on your constituents, as opposed to the tourists. That, again, is a policy call by these guys.”
The tribe and parimutuels also are concerned about the expected growth of electronic games known as pre-reveal games popping up in other states and in convenience stores, sports bars and other locales throughout Florida.
At issue are electronic games known as “Version 67,” produced by Blue Sky Games and leased by Jacksonville-based Gator Coin Inc. The companies sued the state after Division of Alcohol, Tobacco and Firearms investigators confiscated the machines, which the state considers to be illegal slot machines. In March, Leon County Circuit Judge John Cooper ruled the machines do not violate prohibitions against slots because the games include a “preview” feature that tells a player the outcome “before the player commits any money to the game by activating the ‘play’ button.”
In a letter to Governor Rick Scott, the Seminoles demanded that the legislature address the issue or risk the state’s loss of millions of dollars under the compact’s slots revenue-sharing plan.
The tribe has stated the designated player games and the electronic machines both infringe on its agreement with the state. Observers said the situation could favor the Seminoles if Florida officials want to pursue a new compact.
Tribal attorney Barry Richard said, “The question now is whether the state is going to stop those infringements or not. That’s up to the state. People are going to keep trying to circumvent the law, and the state has to make that decision. If they don’t stop it, then the tribe has the option of not making payments.”
