Compact Between the State of Florida
and the Seminole Tribe of Florida
(November 14, 2007)
Why is a compact needed?
Based upon the constitutional
amendment allowing slot machines in Broward and Miami-Dade counties, in the
absence of a compact, the federal government tomorrow will approve a request
from the Seminole Tribe of Florida to allow slot machines on tribal lands. This
approval will provide no benefit to the State of Florida unless a compact is approved by both the state and
the tribe.
What gaming is allowed by
the compact?
The 25-year compact gives the
Seminole Tribe of Florida the right to do the following:
• Operate Class III slot machines and banked card
games (such as black jack and baccarat) at the seven existing facilities on
tribal lands (Immokalee, Big Cypress, Brighton, Hillsborough, and three
locations in Broward County).
• Conduct six no-limit poker tournaments each year,
with 70 percent of the revenue going to charitable organizations
What is the Seminole Tribe
of Florida required to do?
• The Seminole Tribe of Florida will –
o Pay the State of Florida $50 million upon approval of gaming by the federal
government.
o Guarantees an annual minimum payment to the State of Florida of $100 million in the first year, $125 million in
the second year and not less than $150 million in the third year.
o After the second year, the state will receive between
10 and 25 percent of the revenue, depending on total revenue amounts. The
revenue sharing schedule is as follows:
Up to $2 billion, 10 percent
$2 – $2.5 billion, 12 percent
$2.5 – $3 billion, 15 percent
$3 – $4 billion, 20 percent
$4 – $4.5 billion, 22.5 percent
More than $4.5 billion, 25 percent
o Maintain a comprehensive compulsive gambling
prevention program.
o Submit revenues to an independent annual financial
audit.
o Maintain a legal process for compensating patrons for
injuries.
o Ensure consumer protection through compliance with
national gaming standards, state building codes and inspections, audits and
monitoring of games, financial records and internal procedures.
o Make provisions for smoke-free gaming.
o Patrons must be age 21 and older.
How does the State of Florida benefit from the compact?
• Billions of dollars of expected revenue generated by
the compact during the coming 25 years to be appropriated by the Florida
Legislature.
o Governor Crist recommends the funds primarily be used
to enhance and support Florida’s
education system.
o The Governor also recommends that the Legislature
designate five percent of the funds to local governments affected by gaming on
Seminole tribal lands.
• Slot machines and card games such as black jack will
be limited to the tribe’s existing locations. Significant disincentives for the
future expansion of gaming in Florida are created because the state will forfeit its share
of the tribe’s revenue if such expansion occurs on non-tribal lands. Excepted
from this exclusivity provision are the pari-mutuel facilities in Broward and
Miami-Dade counties already authorized by the 2004 constitutional amendment and
subject to local approval.
Why is ratification by the Florida Legislature not required?
• Tribal gaming falls under the jurisdiction of the
United States Congress, which passed the Indian Gaming Regulatory Act,
delegating that authority to the U.S. Department of Interior. The Governor is
executing the law as set forth in that act.
• The compact is careful not to contain provisions or
mandates that intrude on the Legislature’s authority. For example –
o The compact does not appropriate funds to a specific
use.
o The compact does not waive the State of Florida’s sovereign immunity.
o The compact does not designate an enforcing agency or
mandate the way in which it is to carry out its duties.