Seminoles' sweet deal is sucker bet for Florida

By Jim McClellan, Spokesman
Florida Fair Deal Alliance
Copyright © 2007, Orlando Sentinel
Monday, December 24, 2007

One sure sign that the new Seminole Indian gaming compact is a bad deal is the fact that the tribe spent tons of money on television ads to defend it.

Recently, people throughout Florida have been treated to the congratulatory spots that brag about all the benefits the state will receive. According to the ads, allowing the Seminoles exclusive rights to offer Las Vegas-style table games like blackjack and baccarat -- in addition to real slot machines -- at seven locations on the reservation, will bring in easy money.

What these ads don't mention are all of the questions that remain unanswered as a result of the negotiations being conducted behind closed doors, with no input from the people or their elected representatives in the Legislature. Perhaps the most important of these is the real impact this deal will have on the state budget.

The Seminoles and their supporters are quick to point out that the tribe will guarantee the state a minimum of $100 million per year for the privilege of offering games that are illegal everywhere else in the state. But that doesn't take into account the money Florida will likely lose when gamblers simply stop going to existing pari-mutuel facilities.

Those facilities currently provide Florida with $200 million in annual revenue and provide thousands of jobs all over the state. With a wider variety of higher stakes games available on the reservation, it stands to reason that customers will bypass these tax-paying facilities and take their business to the Seminoles (who pay no taxes) instead. The result very well could be a net loss of tax revenue.

The glitzy ad campaign also didn't mention the "poison pill" Florida must swallow if any other county allows slot machines. If that happens, and the Seminoles' take falls below the revenue threshold, they don't have to pay Florida anything.

Incredibly, Gov. Charlie Crist maintains that his back was to the wall and that he was forced to sign the agreement or the federal government would authorize expanded gambling on the reservation. Yet, as Attorney General Bill McCollum and other experts pointed out, there are a number of court cases that suggest the federal government can do no such thing. It was a bluff by the Seminoles, and the governor's negotiators blinked.

Furthermore, the agreement does not address law enforcement or supervision of the Seminole casinos. It does not ensure that workers will be treated fairly. And it provides no legal remedies for customers who believe they have been cheated. Remember, the Seminoles are to a large degree a sovereign nation. Across the country, there are numerous examples of casino customers being denied due process because many tribes have their own judicial systems.

After years of offering tax-free goods and services on the reservations, and receiving tens of millions of dollars in subsidies from federal taxpayers, the Seminole Tribe has become one of the wealthiest in America. With this agreement, Crist has given them a competitive advantage that will allow the tribe to reap even more fabulous profits for the next quarter century, while paying Florida a relative pittance in return.

It's no wonder then why these negotiations were conducted behind closed doors -- and that the publicity campaign started only after the deal was done. Whether they gamble or not, most Floridians recognize a sucker bet when they see it.

Jim McClellan, of Pensacola, is spokesman for the Florida Fair Deal Alliance, an organization representing the state's pari-mutuel industry and concerned taxpayers.