Florida-Seminole gambling deal in jeopardy

By Josh Hafenbrack
Tallahassee Bureau
Copyright © 2009, South Florida Sun-Sentinel
Friday, 06/12/09

Tallahassee: Billions in education funds are at stake, but tribe's attorney says Seminoles aren't likely to approve the deal crafted by Florida's Legislature

All bets are off.

The Seminoles aren't likely to approve a gambling deal under terms set by the state Legislature, citing provisions that could increases costs and competition, the tribe's attorney said Thursday.

Billions in funding for public schools are on the line, at a time of severe deficits.

The key sticking points, tribe attorney Barry Richard said: an increase in the annual payment to the state -- to $150 million -- and a provision dealing with the tribe's exclusive right to offer blackjack and slots outside South Florida.

Legislators, who approved the gambling deal in May, built in wiggle room for future gambling expansion. Voters or legislators can give racetracks or other facilities games similar to those offered at tribal casinos, without voiding the state's deal with the Seminoles. And even if new competition cropped up, the tribe would still be required to make payments, albeit at a potentially reduced rate.

"I feel firmly that the tribe couldn't live with it and the [federal] Department of Interior wouldn't approve it," said Richard, referring to federal regulators who oversee state-tribal negotiations. The annual minimum payment, an increase over the $100 million negotiated by Gov. Charlie Crist and the tribe in 2007, also "throws the economics out of whack," he said.

Richard said he hoped representatives from the Legislature, the governor's office and the tribe would sit down and negotiate new terms.

"We're hopeful we can correct those things and send it back," Richard said. "Hopefully we can come up with something that everyone will be happy with."

The 15-year, $2.3 billion gambling deal crafted by top legislators is now on the governor's desk, awaiting his signature. After Crist signs the bill, as expected, the tribe and governor's office have until Aug. 31 to finalize the details under the parameters set by the Legislature. Then, the Legislature would meet in special session to ratify the final language.

The bill gives the tribe blackjack, baccarat and other table games at two Hard Rock resorts in Hollywood and Tampa, as well as two other casinos in Broward. Three Seminole casinos elsewhere in the state would be limited to slots.

Reaching a gambling deal not only has major financial implications for education funding, but is atop Crist's list of accomplishments as governor. Crist, now a candidate for U.S. Senate in 2010, spent months pressuring the Legislature to sign off on blackjack at Seminole resorts, after his original 2007 deal was tossed out by the state Supreme Court.

"I think we'll come to a resolution," said George Lemieux, Crist's former chief of staff who negotiated the original deal. "My experience has been the Seminoles are extremely professional in these negotiations."

The tribe's spokesman, Gary Bitner, said the Seminoles wouldn't add to Richard's comments until negotiations resume with the governor. "There's no date set for that," he said.

But trying to force changes on a Legislature dominated by Republicans reluctant to embrace gambling is politically treacherous.

The leading legislator on the issue, Rep. Bill Galvano, R-Bradenton, said overhauling the gambling deal is not an option. He said the $150 million minimum is reasonable, given how much the tribe has expanded its gambling operations.

Rather than reopen the gambling discussions, Galvano said he'd advocate a hardball route if the tribe balks at the Legislature's deal: lobbying the federal government to enforce the state's current gambling laws, which ban blackjack. The tribe continues to offer the games at several casinos, including Hard Rock, under a legal cloud.

"If we're talking about filling in details or making a policy tweak, that's not going to be very difficult," Galvano said. "But if the tribe expects that we would come back to the Legislature with major structural changes, I think the more appealing route would be to just let the feds enforce."

For his part, Richard said neither side should make a "take it or leave it" demand. But he said the Legislature has an incentive to craft a deal that's acceptable to the tribe: money.

"There's another side to this story: If we don't work it out, the Legislature won't get anything at all," he said. "That's the worst thing for the state of Florida."

Josh Hafenbrack can be reached at jhafenbrack@sun-sentinel.com or 850-224-6214.