With the state budget in surplus mode, Florida legislators have hinted they may not renew the Seminole compact, which gives the tribe the exclusive right to operate blackjack, chemin de fer and baccarat at five of its seven casinos, in return for giving the state about 6 million per year. The agreement has generated billion for the state in the past five years.
But by not renewing the compact, lawmakers could update the state’s gambling laws and open the state to the tribe’s competitors. Florida parimutuels and potential operators of destination resort casinos in South Florida have argued that expanding their businesses would bring the state more revenue than extending the tribe’s monopoly.
Governor Rick Scott, who recently was sworn in for his second term (the Seminole tribe contributed $25,000 of the nearly $1 million spent on inauguration festivities), has the sole authority to negotiate the banked-card games provision of the compact, which will expire July 31. Other compact provisions, which will not expire for 15 years, give the Seminoles the right to operate slot machines at all of its casinos in return for revenue sharing, giving the tribe a virtual monopoly outside Miami-Dade and Broward counties.
Scott’s office said he has not begun discussions with the tribe. Last year, his staff offered a compact deal that included these provisions: craps and roulette would be offered at all casinos, in exchange for $2 billion over seven years; one resort casino would be allowed in Miami-Dade, but certain tribal payments would end; the tribe could open a casino in Fort Pierce; and the state would not be penalized for lowering the tax rate to parimutuels or allowing decoupling. Legislators squashed the deal.
State Senator Bill Galvano, who will be involved in gaming law negotiations, said, “It’s not out of the realm of possibility that the governor and legislature end up doing nothing on the compact.” But he conceded that could be a bluff to bring everyone to the table. “The loss of the banked card games is enough to motivate further negotiation. If we become engaged with a negotiation on the compact and the reality sets in that the legislature has to approve it, then all these constituencies will come out–parimutuels, destination resorts,” Galvano said.
Seminole tribe 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.’
In addition, recently, as legislators met for committee meetings, parimutuel industry operators and their lobbyists descended upon Tallahassee. The eight casinos in Miami-Dade and Broward want to add blackjack and lower their tax rates for a more level playing field with the Seminole tribe.
Also, animal rights activists who want to end racing and greyhound racetrack owners are pushing for decoupling, which would let tracks end an 18-year-old rule that allows them to operate poker rooms only if they run 90 percent of the number of races they ran in 1997. Dog breeders and owners strongly oppose the proposal. Palm Beach and Naples racetracks want to move forward on voter-approved referendums allowing them to offer slots.
Advocates for destination resort casinos, including Genting and Las Vegas Sands, also have lobbyists in the Florida capitol. A Bloomberg report found that destination resorts could generate $1.5 billion in additional spending annually in Florida. But opponents are loudly speaking out. For example, the Orlando Sentinel recently stated with casinos in 23 states, the nation is saturated–and as a result, Florida could end up like Atlantic City, where four casinos closed, 8,000 jobs were lost and 40 percent of local restaurants and retail outlets were shuttered. Disney continues to fight hard against the possibility of destination casinos impacting the state’s $71.8 billion tourism industry.
State Senate President Andy Gardiner, who strongly opposes gambling, said he may allow a vote on a gambling bill in the Senate. “I think it’s no secret where I stand on gaming, but in this role, it’s not my job to dictate to the members what we do. I can see a scenario where a bill can actually make it to the Senate floor where I can vote against it.”
But attorney Brian Ballard, representing Palm Beach Kennel Club and Genting’s Resorts World Miami, said, “I really feel good about where the governor is.”
