Florida Gambling Issues Intersect

While the Seminole tribe debuted a third ad urging lawmakers to support the proposed new compact, the Florida Senate Committee on Regulated Industries held another hearing about it, including testimony from parimutuels recently cited by regulators for offering banked card games. Meanwhile the Seminoles continue to offer the games although their exclusivity rights expired.

The Seminole Tribe of Florida recently launched a third TV ad, “Guaranteed,” in its efforts to convince lawmakers to support the proposed Seminole compact. The compact, currently being considered by the Florida Senate Committee on Regulated Industries, would bring in billion over seven years to the state for allowing the tribe exclusive rights to offer blackjack, and add craps and roulette, at its seven casinos. The compact also would permit, but does not authorize, slot machines in Palm Beach County and at a new facility in Miami-Dade County, limited blackjack at parimutuels in Broward and Miami-Dade counties and possibly decoupling horse and dog racing from cardroom or slot operations.

The Seminole’s ad uses clips from a previous meeting of the committee, and, according to a news release, “highlights the guaranteed revenue share to the state of Florida under the new gaming compact.” The ad will run in Tampa, Miami, Orlando, West Palm Beach, Jacksonville, Fort Myers, Mobile-Pensacola, Tallahassee, Panama City, Gainesville and online.

Meanwhile, Governor Rick Scott, who with Seminole Chairman James Billie signed the compact on December 7, recently took questions after a bill-signing ceremony. When asked about the compact, he commented, “Well, I did my job. We took the time, we have a good compact but I respect the leadership of the House, President Gardiner. Now it’s up to them. They’ll decide how we go forward with this.” When asked whether he would lobby lawmakers for votes, Scott repeated, “I did my job to get a negotiated compact. That’s the way it was supposed to work. It’s up to them. I respect whatever decision they make.”

Scott also was asked if he needs revenue from the compact to make sure his gets his signature proposal, a $1 billion tax cut package, this year. He said, “Revenues are growing. I’m confident we’re going to see a billion dollars in tax cuts,” he said. “The money is there?” he was asked. “Absolutely,” Scott replied.

Whether or not they have been swayed by the Seminoles’ ads, the Senate Committee on Regulated Industries addressed compact-related issues at its latest session, including seven card rooms that recently were cited by the Florida Department of Business and Professional Regulation for offering house-banked games. They are operated by Isle of Capri, Gulfstream Park, Magic City, Palm Beach Kennel Club, Tampa Bay Downs, Bet Best in Jacksonville and Derby Lane in St. Petersburg.

The parimutuel operators contend the games are legal. Regulators last year declared the games were illegal after allowing them for years. At the committee meeting, state Senator Jack Latvala questioned the regulators’ actions against the card rooms. “I’m curious, how we could arrive at a situation where they’re illegal less than a week after I asked questions about that.” Howard Korman of Jacksonville Greyhound Racing, one of the parimutuels cited by regulators, said, “I wish I could answer that. We basically felt that we had complete permission. I truly don’t understand why at this point in time that the argument made by our regulators is now different.” Latvala replied, “It’s unfortunate to have the carpet pulled out from under you but I think that’s an extension of what’s going on with this compact. I’ve got to believe it’s related to this compact. I’ve got to believe it’s related to the questions I asked last week.”

“They specifically authorized us to operate these specific games numerous times,” said John Lockwood, a lawyer representing Magic City Casino and the Jacksonville parimutuel, plus Palm Beach Kennel Club, the first parimutuel to get authorization from the state to run the games, in 2012.

The Seminole tribe claimed the games at the parimutuels violated their exclusive rights to offer the games. Although the 2010 compact granting exclusivity expired last summer, the tribe has continued to offer blackjack. In October 2015 it filed a lawsuit against the state, accusing it of violating the exclusivity provisions of the agreement.

The state recently responded to that lawsuit, claiming, “The tribe has unjustifiably refused to perform its obligations under the compact, materially breaching the compact and discharging the state’s obligations thereunder.” It further stated, “nothing in the Seminole Compact between the Tribe and the State excuses the Tribe’s failure to comply” with removing blackjack from their casinos. The “Tribe’s authorization to conduct card games terminated on July 31, 2015. However, the State affirmatively pleads that the continued conduct of such games by the Tribe is beyond the Compact’s ‘grace period’ and, hence, without authorization.”

The case is under a mediation order, but a jury trial has been scheduled to start July 5.

In other Florida gambling developments, the anti-gambling group No Casinos! announced it has collected 100,000 signature s for its Voters in Charge ballot initiative. State law requires 68,314 valid signatures for the Florida Supreme Court to review the ballot language. No Casinos! President John Sowinski said, “When we launched this petition drive in October, we outlined a plan that called for hitting this goal of collecting enough signatures, that when validated, would result in the total needed for the Supreme Court to review the initiative, and we have achieved that goal.” The amendment would allow Florida voters, not the legislature, to determined if they wanted expanded gambling in Florida.

The group also opposes the proposed Seminole compact out of concern it would allow the legislature to authorize slots and table games at nontribal casinos and parimutuel facilities