Deal reached on Seminole casino gambling
Seminole casino deal would create 45,000 jobs
Indian gaming money earmarked for education

© 2009 The Associated Press
Thursday, May 07, 2009

TALLAHASSEE: Legislative negotiators agreed on what Gov. Charlie Crist called a "great" deal to expand gambling at Seminole Indian casinos Wednesday, some six hours after their talks were on the brink of collapse.

Both sides made concessions. The House accepted a broader gaming expansion than many of its members wanted. The Senate agreed to less than it had been pushing for.

The agreement has the potential to generate millions of dollars for state coffers that have been shrinking due the faltering economy.

The next questions are whether both chambers will pass the compromise when it comes to a vote Friday and then if the tribe will accept it. A Seminole spokesman said it was under review.

"I'm quite hopeful about it," Crist said. "This is a great victory for the children of Florida and for education."

One issue quickly settled was what to do with a minimum of $150 million annually the state expects to gain from the deal. It would go into the state's Education Enhancement Trust Fund, that pays for such things as college scholarships, school construction and other education needs at all levels.

Rep. Bill Galvano, the House's gaming negotiator, said the Seminoles will be hard pressed to pass up the deal but acknowledged many of his members will disapprove.

"There are those members who just have a complete aversion to anything that has to do with gaming," Galvano said. "There will be 'no' votes."

Crist has been a frequent visitor to the talks and was on hand as Galvano, R-Bradenton, and Senate Ways and Means Chairman JD Alexander, R-Lake Wales, resolved their differences.

The governor previously negotiated a compact acceptable to the tribe, but the Florida Supreme Court nullified it, ruling the Legislature must approve any deal with the Seminoles. He said the legislative proposal compares favorably with his deal.

It would permit banked card games such as blackjack and baccarat at the tribe's three Broward County casinos and one in Tampa. Banked games would not be allowed at other facilities in Immokalee, Brighton and Coconut Creek. Las Vegas style slot machines and no-limit poker would be permitted at all seven sites.

To help pari-mutuels compete with the tribal casinos, the agreement includes lowering the tax rate from 50 percent to 35 percent on slot machines at horse and dog tracks and jai ali frontons in Broward and Miami-Dade counties, the only places where they are legal.

Pari-mutuels also would get higher poker betting limits and be able to race thoroughbred horses at night. The South Florida tracks, though, could add blackjack only through legislative and voter approval.

The House initially opposed any banked card games at the Seminole casinos. The Senate came out of the gate pushing for full casinos at each of the seven sites.

After some give on both sides, Alexander reneged on his last offer earlier Wednesday and again proposed no-limit poker, slot machines and banked card games at all seven casinos. He said Seminole leaders told him they must have "the opportunity to generate the dollars" if the state expects to receive substantial proceeds.

"It appears the Senate, with all due respect ... is moving backward," Galvano said, adding he was unsure they'd meet again.

Galvano, though, later came back with what called a final offer. Alexander accepted it, saying he didn't want to take a chance on losing the gaming money given the House's firm posture.

The deal includes an annual $150 million minimum guarantee to the state -- higher than Seminoles prefer.

The state's first-year take is expected to be at least $300 million because the Seminoles already have put $150 million aside under Crist's compact that couldn't be paid when the Supreme Court struck it down.

If the full Legislature passes the deal, Crist will negotiate the details with the tribe. The final agreement then would have to return to the Legislature for approval at a special session or next year's regular session.

Lawmakers already are in a one-week extension of this year's session, but it will end Friday.

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Florida Legislature reaches compromise
on Seminole gambling revenues

By Mary Ellen Klas
Herald/Times Tallahassee Bureau
© 2009 Miami Herald
Thursday, May 07, 2009

Florida's historic Hialeah Park racetrack would return. The Seminole Tribe's Hard Rock casinos would keep their slot machines and card games. South Florida's parimutuels would bear a lower tax burden. And tracks around the state could seek bingo-style slot machines in the future.

Those are the major provisions of a last-minute compromise reached in dramatic fashion late Wednesday by House and Senate leaders. If approved by the Seminole Tribe, the plan would bring the state a minimum of $150 million in annual revenue sharing from the Seminole Tribe, and allow the state to use another $150 million set aside by the tribe this year when its previous gambling agreement with the governor was voided by the court.

''This is a victory for the children of Florida and education,'' said Gov. Charlie Crist, who must now renegotiate a pact with the tribe under the new legislative guidelines, and then have it approved by lawmakers.

Will the Seminole Tribe accept it?

''There's a great possibility of that,'' he said. ``I mean, I want to be respectful of their opportunity to have a chance to talk to their members. But it looks like the parameters -- from what I've heard -- are very good.''

The deal adopts most of the provisions sought by the anti-gambling House. It includes a plan to allow slot machines at Seminole casinos outside of Miami-Dade and Broward -- the tribe has seven reservations -- and the exclusive right to blackjack and baccarat at its Hard Rock casinos in Broward and Hillsborough counties.

The biggest winner may be Hialeah. Lawmakers agreed to allow the famous track to reopen with card rooms and quarter horse racing. After operating live racing and simulcast races for two years, it can offer Las Vegas-style slot machines.

''Hialeah is alive again,'' said Luis Rojas, a former state representative who has been lobbying for the race course's return for years.

Hialeah Rep. Steve Bovo, a former city councilman who used to work for track owner John Brunetti, called the deal historic.

''This is going to help us almost redefine the east end of our city,'' he said.

Brunetti must spend between $60 million and $100 million on capital improvements before the track reopens, Bovo said, but he envisions a mecca of retail, restaurants and tourist activities on the park's 220 acres.

The gambling bill was the final piece of unfinished business in the Legislature's extended session. A vote on it will likely be held Friday, the final day of the overtime. Legislators completed the $66.5 billion budget Tuesday, leaving the gambling deal for the final hours.

In the end, it came down to pragmatism and -- the liniment for all troubles this session -- money.

Senate leaders for months had pushed for a wide expansion of gambling by offering the tribe full casinos that included roulette and craps. The state's parimutuels would have gotten new slot machines and other games to subsidize its failing horse and dog tracks and jai alai frontons.

By contrast, the more anti-gambling House wanted to expand gaming only to Hialeah, while stripping the Seminole Tribe of the blackjack and house-banked card games it currently operates. The tribe has continued to operate the games won under the previous compact, even though the Florida Supreme Court invalidated the agreement last year.

With 26 parimutuels in cutthroat competition for more gambling options, legislators ultimately decided they could not please them all. Plus, the $300 million guaranteed under the agreement for the state's cash-strapped coffers was too much to turn down.

''We think it's important to have these resources to get through the next year and couple years,'' said Sen. J.D. Alexander, R-Lake Wales, the Senate's lead negotiator.

Negotiations were tense throughout the day. At one point, House chief negotiator Rep. Bill Galvano declared that the Senate was ''moving backwards'' and abruptly walked out of gambling talks.

''I'll look at your offer and will let you know if it's necessary to meet further,'' he said.

Eight hours later, the Senate capitulated. The House arrived at a ''final offer'' and presented it to Alexander, while Senate President Jeff Atwater, Republican Leader Sen. Alex Diaz de la Portilla, Gov. Charlie Crist and the representatives of the Seminole Tribe watched.

Alexander briefly conferred with Atwater and then announced they had reached agreement.

The deal lowers the tax rate for South Florida casinos to 35 percent from 50 percent. It no longer penalizes other dog and horse tracks and jai alai frontons across the state and in South Florida for seeking additional games including video lottery terminals, which are slot machine look-a-likes. Under the previous compact with the tribe, if the parimutuels had won approval for the games, the tribe would have been allowed to cease payments to the state.

Under the new plan, the tribe could not reduce its annual minimum $150 million payments to the state even if competitors outside Miami-Dade and Broward win legislative approval for additional games and also win local referendums.

The two requirements are large hurdles that displeased even veteran parimutuel lobbyists.

''It'll probably put us out of business,'' said Ken Plante, lobbyist for Tampa Bay Downs.

Miami-Dade and Broward casinos, however, were pleased.

''This is great for Gulfstream,'' said Marc Dunbar, lobbyist for Gulfstream Race Course in Hallandale, which offers slot machines. He said the lower tax rate and a provision that allows slots players to compete for bigger winnings will help boost attendance, he said.

Dan Adkins, president of Mardi Gras Casino in Hallandale, had fought hard for the lower tax rate, saying it was needed to level the playing field -- but he had hoped to win blackjack for the track to help it compete with tribal casinos.

''I'm still trying to absorb it,'' he said.

If South Florida parimutuels want to add more games, such as blackjack, they would have to win legislative approval and a local referendum. And the tribe would still have to pay the state its minimum annual payments -- unless the tribe's net win drops below $1.37 billion.

The previous compact allowed the tribe to end payments to the state of $100 million a year if any additional games were approved anywhere in Florida.

Legislative leaders say the deal with the Seminoles is similar to those passed in other states.

''It's a deal they will be hard-pressed to not accept,'' Galvano said, but he said he doesn't expect a unanimous vote from lawmakers. ``It's still a hard lift in the House.''

Mary Ellen Klas can be reached at meklas@MiamiHerald.com.