All Sides A Go In Gaming Deal

By Kathleen Haughney
The News Service of Florida
Tuesday, April 06, 2010

THE CAPITAL, TALLAHASSEE: The governor, Legislature and Seminole Tribe are all finally on the same page on a gaming deal between the tribe and state that would give Florida at least $1 billion over the next five years.

The deal, announced Tuesday by lawmakers and the tribe, follows nearly two decades of negotiations and is the third deal that Gov. Charlie Crist has negotiated with the tribe, but the first that has had support from legislative leaders. A Florida Supreme Court decision struck down the initial gaming compact inked in 2007 saying the governor needed legislative approval, and in January, a legislative panel unanimously rejected a second agreement signed by Crist and the tribe.

The compact would give the tribe exclusive rights to Las Vegas-style slot machines outside of South Florida in exchange for a cut of the revenue. It also will allow the tribe to offer banked card games such as blackjack, baccarat and chemin de fer, at five of its seven casinos. Cards would not be allowed at the Brighton and Big Cypress facilities.

“This cleans up and resolves a controversy that has been festering for decades,” said Rep. Bill Galvano, R-Bradenton, the House's lead negotiator in the gaming compact.

The deal is a boon for the state's budget. The senate had included $412 million in its budget from a potential compact, but the House had not. The state could now see $435 million for this year's budget because of money the tribe has held in reserves since the 2007 deal, combined with the promised annual payment to the state.

“This really bodes well for the future of Florida and that's really the point,”Crist said at a news conference.

Crist has long promised publicly that the money from the compact would be used for education, but Galvano said the legislation authorizing the compact won't dictate that the money be used for schools.

Under the deal, the tribe would pay the state $150 million in each of the first two years, a minimum of $233 million for the next two years and $234 million for the final year of the compact. At the end of the five years, the Legislature would decide whether to reauthorize the compact. If it does not, the tribe must cease operations of its banked card games.

Jim Allen, CEO of Seminole Gaming, said afterward he had actually suggested the five year provision during the negotiations.

Noticeably absent from the press conference announcing the deal were representatives from the state's pari-mutuel industry, which have long contended that they have been hurt by tribal gaming and have asked the state for some parity, so they can keep up with the tribal casinos.

The Legislature is expected to pass a bill that contains some sweeteners for the tracks and jai-alai frontons, including no-limits poker and expanded hours. A representative for tracks in Naples and Flagler said they are still reviewing the compact.

Despite the agreement, the deal isn't completely finished yet. The House and Senate must formally vote on the compact as must the Seminole Tribal Council. Galvano said he is confident the votes are there to formalize the agreement.