Florida Senate Gaming Committee Chairman Garrett Richter of Naples said Governor Rick Scott’s aides asked him to hold off on a bill that would allow two destination casino resorts, one each in Miami-Dade and Broward counties, that could offer slots, roulette and craps. “The governor’s office called me and asked if we would slow down the process until we know what the terms of a potential deal with the tribe is,” Richter said. “The three elements of the negotiation are going to be continued exclusivity, potential expansion of product and revenue. And it will all kind of snuggle together at the end. I do believe that the governor is in search of more revenue for the state than we currently receive. How he negotiates and what he negotiates for more revenue is up to him.”
Scott spokesman Frank Collins said, “Ultimately, it is up to the Senate on how and when they move their own bills. With the gaming compact set to expire in 2015, we will take the time needed to get the best deal for Floridians.”
The Seminole compact guarantees that the tribe gives the state $1 billion over five years in exchange for the exclusive right to operate slot machines at four casinos outside of Miami-Dade and Broward. It also allows the tribe to offer banked card games—blackjack, chemin de fer and baccarat—at the Hard Rock casinos in Tampa and near Hollywood, plus three other casinos. The compact also allows the tribe to reduce its payments if slot machines are allowed at any facilities that weren’t already operating in Broward or Miami-Dade, except for Hialeah Race Track, when the deal was signed.
The portion of the agreement that relates to table games will expire August 1, 2015. It was negotiated by then-Governor Charlie Crist and required the legislature’s ratification for any future deals with the tribe–meaning Scott must deliver a proposal to legislators sometime before the session ends May 2 to get approval this year. The federal government also must sign off on whatever agreement Scott and the tribe reach. Under federal law, Indian tribes are allowed to have whatever type of gambling is authorized anywhere in the state.
State Senator Bill Galvano of Bradenton said, “If nothing’s done, the tribe is going to lose their ability to operate the banked card games. That’s a real issue for them and it certainly is leverage for the state of Florida. So the heart of the negotiations have to be the continuation of the card authorization, most likely an effort to have additional games at their facilities, and the Seminoles would have to couple that with a new, greater offer of dollars.”
House Speaker Will Weatherford of Wesley Chapel remains firm that his chamber will not pass any major gambling legislation unless negotiations between Scott and the tribe are finalized.
The House Select Committee on Gaming unanimously approved an omnibus package that would allow slots in Palm Beach County and a casino hotel in downtown Miami, as long as those expansions don’t impact revenues the state gets from the tribe. In addition, the House Select Committee on Gaming approved a proposal to create a new state agency to regulate gambling and create a Gaming Control Board. It also approved placing an amendment on the November ballot that would require voter approval of future gambling expansion. If the measure passes the legislature, 60 percent of voters would have to vote yes for the amendment’s language to be added to the constitution.
Unlike the Senate’s plan, the House bill does not include provisions allowing Las Vegas-style casinos in Miami-Dade and Broward Counties.
In approving several of the measures, the Republican-controlled House may be taking into consideration the results of a recent poll of Republican Senate districts in Florida which found that candidates need not fear supporting expanded gambling. The poll of 650 likely Republican voters by the Tarrance Group, financed by the Republican Party of Florida, indicated 61 percent of likely Republican voters favor allowing destination resort casinos, as long as voters of the state approve it; only 33 percent oppose it. Last year 53 percent were in favor, though they were not asked about a statewide referendum. The poll also indicated strong support for allowing gaming to expand statewide, not just in southern Florida.
Also in Florida gambling news, the equity fund ABC Funding agreed at auction to buy the historic Miami Jai-Alai fronton and casino for $155 million. ABC Funding beat out bids from casino operators Mohegan Sun and Penn National Gaming as well as Chicago private-equity firm Z Capital.
The casino’s parent company, Florida Gaming Corporation, filed for Chapter 11 bankruptcy protection in August. Florida Gaming had agreed to sell Casino Miami Jai-Alai for $130 million, including $15 million in obligations, to a New York-based investment firm that owns casinos in Panama and Curacao. An investment bank later valued the casino as being worth $180 million. ABC Funding also had sued the casino for nonpayment of debt.
Florida Gaming took out an $87 million loan from ABC Funding in 2011 to add a 60,000 square foot casino with 1,000 slot machines, an expanded poker room, video blackjack and concert and restaurant facilities. The facility opened in January 2012. Financial statements indicate the fronton’s slot machines deliver $1.1 million in cash weekly, while a top executive testified that running jai-alai matches results in a net loss of about $1 million a year.
