The Seminole Tribe of Florida is airing a second ad in its quest to extend its lucrative gaming compact with the state. A provision of the 20-year compact, that will expire in July, gives the tribe exclusive rights to offer banked card games in return for billion over five years. The state House recently introduced a comprehensive gambling overhaul that does not include the Seminoles.
In the new, Mark Wilson, president and chief executive officer of the Florida Chamber of Commerce, calls on the state to extend the compact and limit gambling in Florida. “The Seminole compact has been good for Florida and the economy, while controlling the expansion of gaming, and that’s good for everybody,” Wilson says in the ad, which also features the Florida Restaurant and Lodging Association. Both organizations have opposed expanded gambling, including destination casinos in South Florida.
Meanwhile, House Majority Leader Dana Young, who’s managing gambling legislation this session, offered a plan to allow two Las Vegas-style casinos in South Florida and also allow slot machines at two additional greyhound tracks. Young said her bill would reassert state control over the gambling industry and generate more revenue. However, opponents said it actually would expand gambling by allowing outside gaming companies to open two new casino resorts in South Florida.
Young’s measure also would allow four dog tracks to de-couple racing from offering other gambling options like slot machines. Jim O’Brien, president and general manager at Melbourne Greyhound Park and Club 52, said, “De-coupling makes sense for most of the parimutuel operations. The greyhound business is declining across the industry and it’s a loss leader for us. From an economic point of view, there’s no reason for us to really continue it. Everybody is behind this, except for the kennel owners and I understand their position. That’s their business and has been their livelihood for years. But it doesn’t make sense for anybody except for the kennel owners.”
In addition, Young’s bill would allow the Seminoles to offer the full range of gambling options, including blackjack, craps and roulette, but they would have to give up exclusive rights to banked card games.
While the legislation works its way through the process, the Seminoles have put a hold on a $1.6 billion expansion of their casinos and hotels in Tampa and Hollywood–projects that could create 4,000 permanent jobs. The proposed 16-story, 537-room hotel in Tampa would be the second-largest hotel in Hillsborough County behind the 719-room Tampa Marriott Waterside Hotel & Marina in downtown Tampa. The new hotel would give the Seminoles’ Tampa operation a total of 817 rooms next to its most profitable casino. The Tampa Hard Rock is the fourth-largest casino in the nation and generated 40 percent of the tribe’s estimated $2.2 billion in total gambling revenues last year. The tribe also would add a 1,000-room guitar-shaped hotel at its Hollywood resort.
Seminole Gaming Chief Executive Officer Jim Allen said, “If nothing happens, both of these projects are on hold.” Allen said it would be better to allow the tribe to continue offering a limited number of gambling options rather than expanding gambling and allowing outside gaming companies to enter the state. Last year the Seminoles’ gambling operations generated $255 million for the state.
Majority Leader state Senator Bill Galvano said both House and Senate leadership were willing let the compact provision expire. “It’s not necessary for us to act. The governor didn’t include those funds in his budget, and we’re not planning on including them in ours, either.” If the Legislature passes a no-gambling bill and the compact provision is allowed to expire, the Seminole Tribe would have to shut down banked card games but could continue running slots until 2030.
Under federal law, the governor negotiates the compact and the legislature has to approve it. But Seminole General Counsel Jim Shore said the tribe has not heard from Governor Rick Scott’s office since January. “Whatever the state wants to do, we’ll deal with it. But right now we’re not getting a lot of communication from the state on the table gaming part of the compact,” Shore said. Tribal leaders have been meeting with legislators, however, and have an army of lobbyists. Scott’s spokeswoman Jeri Bustamante said, “We will take the time that’s needed to get the best deal for our state.”
