State, Seminole Tribe work past deadline on gambling compact

By John Holland
Copyright © 2007, South Florida Sun-Sentinel
Tuesday, October 16, 2007

Blowing past what appears to be a deadline in name only, the state and Seminole Tribe will keep working to bring Las Vegas-style gaming to Broward County but don't know when they'll have an actual deal.

Monday marked the most recent in a series of federally imposed dates for Florida and the tribe to form a "compact," or set of rules, allowing the tribe to expand its gambling activity on reservations in Hollywood and elsewhere. In exchange, the state would get a percentage of the profits and have some role in regulating the operations, according to lawyers and draft compacts already made public.

A spokesman for Gov. Charlie Crist said more talks are scheduled for Thursday with hopes of reaching agreement. The U.S. Department of Interior, which oversees Indian tribes and regulates gaming operations, has said it won't step in as long as both parties keep working on a solution.

"Negotiations do continue and are being conducted in good faith," Crist press secretary Anthony De Luise said Monday. "We are aware of the deadline, and the governor's office will be communicating with the Department of Interior to keep them updated on this."

The Interior Department has threatened for more than a year to force the state to allow Class III slot machines on Seminole land, imposing at least four deadlines during that time. Class III machines are identical to slots used in Las Vegas and would replace the current machines, which are based on Bingo odds and theoretically have lower payoffs for customers.

In 2004, Broward voters passed a referendum allowing local pari-mutuel tracks to offer Class III slots. Federal law allows Indian tribes to operate the same level of gaming that a state offers, and the Seminoles are asking the National Indian Gaming Commission to bypass the state and approve Class III slots.

But the agency's power over the state remains suspect. A recent Colorado federal appeals court ruling questions whether the federal government can regulate gaming operations and any federally imposed solution would likely cause Florida to file suit.

Both sides face potential risks — the state could be forced to accept gaming without getting any money, while the Seminoles may have to spend years battling in court.

So they are trying to reach a compromise. Records released show the Seminoles, who make about $500 million a year in gaming profits, are offering to give the state $50 million in the first year and at least $100 million per year after that. The tribe also could offer table card games like blackjack and baccarat, which are now prohibited.

A compact regulating the Seminoles could also be a boon for players. Currently, the tribe has no oversight and refuses to disclose the odds on its game, meaning players are left in the dark about their odds of winning.

John Holland can be reached at jholland@sun-sentinel.com or at 954-385-7909.