Observers said Florida Governor Rick Scott and the state legislature, under the influence of major casino operators and integrated resort developers, may be leaning toward playing hard to get with the Seminole Tribe of Florida. Provisions of the tribe’s Class III gaming compact will expire July 31, including the exclusive right to offer blackjack, chemin de fer and baccarat at five of their casinos. In return the tribe shares 6 million a year with the state.
Scott and the Seminoles reportedly were on the verge of renewing the compact last May, but ran out of time as the legislative session ended. Now with the state looking at a budget surplus, some legislators question if the state truly prefers Seminole revenue over other options, including expanding gaming to include pari-mutuels and two destination resort casinos in South Florida. Scott has the sole authority to negotiate the compact, but the legislature has to approve it.
Seminole attorney Barry Richard said, “They’ve got big projects on their books, which is good for the state, but in order to be able to finance them at reasonable rates they have to have long-term security. They don’t want to have to fight a battle year after year.”
Malaysia-based Genting, which purchased the Miami Herald waterfront property, wants to develop a casino hotel there. But observers said lawmakers also may allow a second integrated resort-casino in Tampa. Economist Damian Cruz said, “With Disney in Orlando, there won’t be any hotel-casino there. But Tampa would be very appealing to any Las Vegas casino operator.” The Seminoles’ Hard Rock Tampa is the most profitable hotel-casino in the U.S., generating $1 billion annually.
However, competition for Hard Rock Tampa may be a real consideration thanks to former Boston mutual fund manager Jeff Vinik, owner of the Tampa Bay Lightning. Vinik has been acquiring property around Amalie Arena, home of the Lightning, a former industrial area, now mainly parking lots. Vinik has proposed a $1.2 billion development project for the 40-acre area, including a corporate headquarters, hotels, an entertainment complex, retail space, medical school and residences—about 3 million square feet that could completely change the Tampa Bay waterfront. Economist Cruz said a high-end integrated hotel-casino could help make Tampa a premiere vacation destination, and impact the Hard Rock there by $500 million.
However, former Tampa resident and current friend of the governor is Las Vegas Sands’ Sheldon Adelson , who would like to develop a casino-resort of his own. He gave Scott’s re-election campaign $7.5 million; Genting gave $2.5 million; and the Seminole Tribe gave $2.3 million.
