Failed Seminole Gaming Compact ‘Largest of its Kind’

A tentative agreement between Florida Governor Rick Scott and the Seminole Tribe of Florida, operators of the Hard Rock Casino Hollywood (l.), that was never completed would have been the death knell for commercial casinos in the state.

Although Florida Governor Rick Scott and the Seminole Tribe of Florida were very close to a final agreement, time ran out and negotiations for a new gaming compact are now on hold. Sources said the deal would have been the biggest of its kind between a tribe and a state government, with the tribe guaranteeing the state billion in revenue over seven years for the exclusive right to offer roulette, craps and other table games at its South Florida casinos. Documents indicate the deal would have been worth as much as billion in revenue over 30 years.

The agreement also would have permitted the Seminoles to build a casino in the Fort Pierce area.

The Seminoles and then-Governor Charlie Crist negotiated a compact in 2010 that guaranteed the state $1billion in revenue over five years in exchange for allowing the tribe to operate slots at their seven casinos and giving them a monopoly on blackjack and baccarat games. That monopoly is set to expire in July 2015.

As a result, Las Vegas Sands, Genting and other non-tribal resort-casino operators have been anxious to open casinos in Broward and Miami-Dade counties. They’ve come up against social conservatives in the state legislature as well as Walt Disney Company and other tourism-oriented groups.

Scott spokesman Frank Collins all negotiations are on hold pending the outcome of the November election, in which Crist, now a Democrat, is challenging the Republican Scott. “There is no deal, so none of your documents are relevant. The compact expires in 2015 and the legislature and other stakeholders will play important roles throughout this process. As such, the governor will take the time that’s needed to get the best deal for Florida.” Seminole spokesman Gary Bitner added, ”Everything is still on the table when negotiations resume.”

In the last two years, the Seminole tribe has donated $1.26 million to Florida politicians, including $500,000 to a Scott PAC, $400,000 to the Republican Party of Florida and $95,000 to the Florida Democratic Party. A Crist spokesman said he has an “open mind” about negotiating a new compact with the tribe, but he also wants any money from a compact to go to education.

Scott hired outside lawyers in 2013 in anticipation of the Seminole negotiations. Documents released by the administration show Scott was willing to let the tribe gain the rights to more types of gambling, including roulette and craps at their South Florida casinos. He also was agreeable to an additional casino in the Fort Pierce area if legislators approved it; if not, the tribe could offer craps and roulette at its casino in Immokalee.

Last April, Scott officials approached legislative leaders about holding a special session to approve a new Seminole gaming compact, but Republican lawmakers said they would not sign off on it. Destination resort developers also lobbied against the special session. State Senator Bill Galvano, who was involved in negotiating the 2010 compact, said he told Scott’s representatives that a large amount of money from the tribe would not be enough to win over enough Republicans and Democrats—especially since many GOP legislators will not support expanded gambling. Galvano said that’s the situation no matter who wins the governor’s race. “It’s not an easy sell,” he said.

Currently under Florida law, dog and horse racetracks and jai-alai frontons also may also offer poker. In Broward and Miami-Dade counties, they also can have slot machines. Under their gaming compact with the state, the Seminoles also can offer card games like blackjack and baccarat at five of their seven establishments, including the Hard Rock Casinos near Fort Lauderdale and Tampa. Craps and roulette are illegal.