Florida Governor Rick Scott was close to renewing a compact with the Seminole Tribe of Florida but ran out of time before the end of the legislative session in May. The portion of the 2009 compact giving the tribe exclusive rights to table games at seven of its casinos will expire in July 2015, causing the state to lose about 6 million annually, according to new estimates from state economists.
Scott and the Seminoles are said to have agreed on a seven-year deal that would have added roulette and craps to its South Florida casinos and allowed it to build a casino in Fort Pierce. The agreement also may have explicitly banned Las Vegas-style destination casinos. But observers said the deal broke down over how much the state should be given by the Seminoles for that exclusivity.
Under the current compact, the Seminoles agreed to pay a minimum of $1 billion over five years in exchange for exclusive rights to table games. The tribe can stop the payments if slot machines exist anywhere outside Broward and Miami-Dade counties, excluding those operated by other tribes. The Seminoles also can reduce payments if the South Florida parimutuels are allowed to have banked card games or if slots are authorized at any facilities that weren’t already operating in Broward or Miami-Dade, except for Hialeah Race Track, when the deal was signed.
Seminole spokesman Gary Bitner said, “They’re hopeful to renew the table games provision and come up with a program that’s best for the state”.
State Senate Majority Leader Bill Galvano played a major role in crafting the compact five years ago and is expected to take a lead in the next legislative session. “I do not believe it’s as easy as just deciding whether or not the tribe maintains the banked card games. When the issue goes into play, then all of the various interests are going to promote their goals. You will end up having a robust discussion if you address this issue. Given that the issue needs to be addressed by the end of session or by July, that means that discussion’s coming.”
But getting legislative approval for any expansion of gambling may be even more difficult in the coming session. This year anti-gambling proponent Andy Gardiner of Orlando will serve as Senate president. “I’m one that says, you know, it may be $50 million or $60 million–that’s big money, don’t get me wrong–but as our economy has come back, I don’t feel the pressure to necessarily renew that compact. Obviously, the governor will lead the negotiations, but I think everybody needs to take a step back and not assume that this has to be done. I think we have to take a comprehensive look.”
That “comprehensive look” would have to consider the state’s existing parimutuels. Dan Adkins, vice president of Hartman & Tyner, owners of Mardi Gras Casino Florida in Hallandale Beach, said South Florida’s racinos, horse and dog racetracks and jai alai frontons that offer slot machines, approved by statewide voters in 2004, want comparable table games, hours of operation and tax rates that the Seminoles offer. The racinos pay 35 percent taxes to the state on slot revenues, while the Seminoles’ payments equal about 16 percent on revenues, which exceeded $2.2 billion last year, according to state economists.
In other areas of Florida, dog and horse racetracks and jai-alai frontons want slot machines and also the option to end live races or jai alai games altogether.
In addition, out-of-state casino operators also hope 2015 will be the year lawmakers will finally sign off on destination resorts in South Florida. Las Vegas Sands Corporation lobbyist Nick Iarossi said, “To garner the votes to ratify a new compact will be a balancing act. But I’m confident that whatever passes will have a competitive bid for a destination resort contained therein. I feel very confident about it.”
If the legislature fails to renew the Seminole compact, the state could become involved in drawn-out litigation with the tribe, which would have 90 days to shut down their card games. Tribal attorney Barry Richard said,
“The tribe really doesn’t want to be in an adversarial situation with the state. The card games have been very successful for the tribe and the state. Nobody’s been upset with them.”
Meanwhile, South Florida casinos, in particular those run by the Seminole Tribe, are cashing in on the latest technology: automatic redemption machines that pay out in bills only, so players then have to go to a cashier for any coins due. With more than 7,600 slot machines at South Florida pari-mutuels and another 5,500 at the three Seminole casinos, a reasonable average of 10 players per machine per day adds up to about 131,000 redemption tickets issued daily.
The machines are manufactured by Toronto-based NRT Corporation. Casino officials who opt for the coin-free machines said dirty coins often clog the redemption machines.
The coinless machines were installed this summer at the Seminole Hard Rock Hotel & Casino in Hollywood and the Seminole Casino Coconut Creek.
Under Florida law, uncashed slot tickets are void after 30 days; the casino keeps the money as slot revenue, so it must pay the state 35 percent in taxes. However, the Seminoles pay no state tax so unclaimed money is theirs to keep.
