No Last-Minute Deal, Courts Will Decide Seminole Compact

Although lawmakers and lobbyists tried to patch together a last-minute agreement to save expanded gambling in Florida, the deal fell through before the session ended. Now rulings in the state Supreme Court and a federal court will determine the direction of gaming in the state. Some blamed Senate President Andy Gardiner (l.), who is retiring after 20 years, and didn’t want a gambling bill to be his final piece of legislation.

Though it’s now moot, gambling lobbyists and the Seminole Tribe of Florida attempted to hatch a plan that would have included major concessions from the tribe concerning slot machines. It was a substitute for the Seminole compact developed by Governor Rick Scott and tribal officials, granting the tribe exclusive rights to blackjack in exchange for billion over seven years plus allowing slot at the Palm Beach Kennel Club and at a new facility in Miami-Dade County

The substitute deal was the first time the tribe and parimutuel operators worked together to create mutually beneficial agreement. Palm Beach Kennel Club lobbyist Brian Ballard said, “There was the framework for a deal that I believe had many votes in the House and probably 26 to 28 votes in the Senate. I think we ran out of time.”

Some fingers are being pointed at Senate President Andy Gardiner, who denies the accusations of blocking a vote on an expanded bill that he does not want to be the last legislation passed in his 20-year career. The anti-gambling Orlando Republican is said to have blocked a vote on the gambling bill. As discussions went on for weeks, with dozens of calls between lobbyists and the Seminole’s chief negotiator, Jim Allen, supporters hoped a proposal could be amended on the Senate floor.

Now the courts will decide, in two major lawsuits that could redefine the Seminoles’ gaming operations and the state’s portion of revenue. The cases also could allow slots at parimutuels throughout the state without legislative approval.

The court could conclude that lawmakers have no authority to authorize slot machines outside of Miami-Dade and Broward counties without statewide voter approval, making legislative influence meaningless. It could say only the legislature can decide where to put new games. Or, under a third option, the court could rule Palm Beach and Gadsden counties could seek permits to install slots machines because local voters have approved it.

State Rep. Jose Felix Diaz, the House’s chief compact negotiator, said, “It could become a free-for-all for slot machines across the state. If that happens, you can’t put the genie back in the bottle. The parimutuels across the state will argue they have some vested right to slot machines, and they will fight tooth and nail to make sure their legislators are not voting against them.”

In both lawsuits, if the court rules in favor of the tribe or the pari-mutuels, the tribe could continue to operate just as it does now but it would cease payments of nearly $250 million a year in revenue-sharing money. A new 20-year agreement would have to be renegotiated.

John Sowinski, president of the anti-gaming group No Casinos, said, “We are heartened by the fact that nothing did happen because we’re anxious to see how the Gretna case works out. We are confident Gretna will not prevail.”

Voters in Gadsden County, where Gretna Racing LLC is located, those in at least four other counties approved slots but state regulators have not allowed them to be installed. Brian Ballard, lobbyist for the Palm Beach Kennel Club, said, “If we win, you’re going to have the potential of at least 19 parimutuel facilities having slot machines. We’re not crying wolf. The court has decided to take this case and we feel comfortable where we are.”

The other case, set for an October hearing in federal court, accuses the Seminole tribe of violating the 2009 compact by allowing player-banked card games at its Miami-Dade and Broward slots casinos. The compact expired but the tribes still offer the games; it sued the state saying the stated violated the compact when it allowed electronic versions of the games.

Ballard said, “We were so close this year.” As a result, he hopes the House and Senate leaders will capitalize on the progress and call a quick, narrowly drawn special session. “We would rather not go to the court and would much rather resolve it legislatively,” he stated. Added, Seminole Tribe spokesman Gary Bitner, “The tribe is also now waiting to see what happens at the Florida Supreme Court and at federal court in Tallahassee and to see if those outcomes motivate the legislature to act.”