Florida legislators and Seminole Tribe of Florida officials are continuing to negotiate an expired provision of the 2010 gaming compact that allowed the tribe exclusive rights to offer blackjack, chemin de fer and baccarat at the Hard Rock Casinos near Hollywood and Tampa plus three other
casinos, in exchange for about $230 million a year for five years. That provision expired July 31, 2015 and the 90-day grace period that followed also has ended.
Tribal officials were told to shut down the card games but in October they sued the state, claiming it negotiated in back faith and that it broke the compact by allowing racinos to offer electronic blackjack. The state countersued to have the court shut down the blackjack games, and said since the compact has 15 years left, the state is not negotiating in bad faith.
State Senator Rob Bradley, the Senate’s lead negotiator, said, “We’re still talking, still hashing. He and the House’s negotiator, state Rep. Jose Felix Diaz, have been meeting with Governor Rick Scott’s general counsel, Tim Cerio, and lawyers for the Seminoles. The Florida legislature, which will reconvene January 12, must approve any agreement to extend the card games.
South Florida horse and dog racetracks and jai-alai frontons claim by operating blackjack in their casinos they can replace any revenue the state would lose if the Seminole compact were not renewed. The Seminoles could continue to offer the card games, and the proceeds from the tracks would be taxed under state law. Another issue is whether slots may be allowed at dog tracks in Palm Beach and Lee counties since voters in those communities have approved that. The state Supreme Court recently announced it will rule if slot machines may be allowed at Gretna Racing in Gadsden County without the permission of the legislature. The case could have a far-reaching impact on gambling across the state and affect the Seminole compact which grants the tribe exclusive rights to slots outside Broward and Miami-Dade counties.
Another proposal is to offer another slots-only casino in Miami. Diaz said Genting’s proposed Miami resort casino is a non-starter, but owners of the Fontainebleau have expressed interest in a slots casino on Miami Beach. “We’re still at the 30,000 foot level so we’re not down to details yet,” Diaz said.
Still, the Seminole compact goes beyond money. It also limits gambling expansion in Florida and offers competing gaming operators a way to expand their games or lower their tax rates. But John Sowinski, president of the anti-gambling group No Casinos Inc., said, “The banked card games portion of the compact was sold to the public as a ‘firewall against the further expansion of gambling in Florida.’ The logic was that the revenue enhancements provided to the state for the Seminole Tribe’s privilege of operating banked card games would be sufficient to keep the state from violating strict exclusivity enjoyed by the tribe.” Sowinski said his group is lobbying to stop additional slot casinos outside Miami-Dade and Broward counties and to use proceeds from the compact to buy back parimutuel licenses at dog tracks and other gambling facilities that no longer are economically sustainable.
Diaz noted Scott’s recently proposed budget excludes any anticipated revenues from the Seminole casinos’ card games. “Things are very different than they were in 2009, the last time the compact was negotiated. Then, the state was starved for money so they were going to do whatever they could do to get it done. This time, the state’s in a little better position for money and the Seminoles are in a much better position than they were in 2009, too.” He added, “We know that the money is important to the governor. We know the constitutional amendment to limit gaming in the future is important to the House. We know that local requests are important to the Senate, because they need to pick up votes. But since there’s been no big agreement, everything has been in flux.”
