Gambling Measure, Seminole Compact Possible

The Florida legislature will adjourn May 3, but House Speaker Jose Oliva said the state and the Seminole Tribe still could reach a new compact. The tribe has paid $350 million annually in exchange for blackjack exclusivity since 2010. Now the state wants $750 million a year, allowing the tribe to also offer craps and roulette.

Gambling Measure, Seminole Compact Possible

The Florida legislature will adjourn on May 3 but House Speaker Jose Oliva believes the state and the Seminole Tribe of Florida can agree on a gambling compact. “It depends on what the nature of that agreement will be because some of that will require a lot of back-and-forth. But I think that there is still time. The thing about session is that in the last few weeks, we really start to use every hour of the day,” he said.

Florida Senate President Bill Galvano stated he’s “encouraged” by the status of negotiations between state Senator Wilton Simpson, who will succeed Galvano as Senate president after the 2020 elections, and Seminole Gaming Chief Executive Officer Jim Allen. “But we’re not there yet,” Galvano said.

Sources said a comprehensive gambling bill now in the Senate could include craps and roulette at all of the tribe’s Florida casinos, plus exclusive rights to offer online gambling. In return, the tribe would be expected to pay the state a share of gambling revenue totaling $750 million a year, up from nearly $320.7 million last fiscal year, according to state records. The deal, negotiated in 2010, granted the tribe exclusive rights to offer banked card games like blackjack. Since then the tribe has paid the state more than $2.2 billion. However, the state’s recently finalized 2020 fiscal budget did not include Seminole gambling revenue.

An area of contention continues to be designated player games, offered by parimutuel facilities throughout Florida. In 2016 a federal judge ruled those games breached the tribe’s exclusive rights to offer banked card games. Because the ruling, the tribe could have stopped paying the state but, under an agreement reached with former Governor Rick Scott, it continued to make payments. But that agreement will expire at the end of May. Sources said the state has offered to set more stringent restrictions on designated player games, which the Seminoles have demanded.

The proposed gambling legislation also would allow parimutuels to pay 10 percent less in slots taxes, keep card rooms open 24 hours and offer sports betting. Observers said the parimutuels are consulting with the Department of Business and Professional Regulation, which regulates gambling in the state, to determine if they would be criminally liable after May if they offer designated player games.

Another consideration is the constitutional amendment on gambling voters approved in November. Voters in Charge President John Sowinski said, “Only Florida voters, by constitutional initiative, have the authority to authorize any form of casino gambling, including sports betting. Any legislation that ignores Amendment 3 and its overwhelming voter support is patently unconstitutional.”

Meanwhile Galvano noted, “We may not have anything this session, but efforts will continue to try to make progress. I’m perfectly content to just take our time and move forward and maybe it’s a next-year issue.”

If the measure passes the Senate, the House and Governor Ron DeSantis also would have to sign off on it.

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