For those of you who can switch your attention away from Iowa for a few minutes, there was plenty of politics to witness in Hollywood, Florida, on Monday morning.
Florida Governor Rick Scott visited the Seminole Tribe of Florida’s headquarters as the Seminoles unveiled details for a $1.8 billion expansion program, centered on new hotels at their Hard Rock casinos in Hollywood and Tampa. The new hotels include ritzy pools, hotel villas, and upscale restaurants – all of which would attract vacationers from South America, Asia, and elsewhere.
The governor was greeted by about 500 employees lined along the streets and the hallway to the Seminoles’ headquarters on Stirling Road, some of whom held signs saying “Thank You, Governor Scott.” (Interestingly, a similar rally took place when then-Governor Charlie Crist shepherded the first-ever Seminole compact through the legislature, whose members included Marco Rubio. Christ ran against those two guys in recent years, and lost.) Scott, of course, is all about economic growth, so the tribe happened to mention that the projects represent 14,585 construction jobs and 4,867 new full-time jobs.
Scott and the Seminoles have a common goal: They want the $3 billion, seven-year compact they signed to be approved by the Florida legislature. The tribe would be able to add craps and roulette and continue blackjack, which technically legally expired in July but is still being dealt at five of the tribe’s properties. The proposed compact could be derailed by those opposed to gambling, as well as by legislators representing racetrack casinos who feel that one portion or another of the Seminoles’ bargained exclusivity would cripple their constituents.
Seminole Gaming CEO James Allen has noted that the tribe is shifting more toward entertainment and lucrative players. “Our business model is not just to prey on the local player who has $20 or $30 in his wallet,” he said. The tribe is after customers with deep pockets. They recently created an aviation division – to provide exclusive flights to their best patrons – and the villas in the planned hotel in Hollywood would attract families who might stay for up to a month.
The current hotel in Hollywood has 500 rooms; the new one would add about 800 rooms, and is shaped like a guitar. (Hard Rock… music… guitar.) The renderings for the new hotels include a large pool area and sunken water chairs in Hollywood, and a rooftop pool in Tampa, where Allen notes space is tighter: Hollywood is a 100-acre property, Tampa is only a third of that.
“The tribe has the financial resources to do it as well or better than anybody,” he said, noting that the Hollywood Seminole Hard Rock could rival places such as Atlantis, and be compared to Las Vegas’ Bellagio, which, though was built in 2002, is considered one of that city’s top venues.
“When you spend money or capital in a frugal way, you don’t create something that’s iconic… The Bora Bora experience”, Allen said. “The compact is not about adding more machines. For those trying to derail it, it’s just not accurate.”
In some ways, the tribe’s presentation to Scott was a case of preaching to the choir. He’s already signed the compact. It’s the Florida Senate, House, and committees along the way that need to be sold. (The conference Monday morning was live-streamed; publicists made sure those in Tallahassee knew of the event.)
But Scott loves to hear about jobs and people, and he, Allen, and tribal members sat at a business table with bottles of water in front of them for more than an hour. The tribe had current employees offer testimonials. Seven people whose work would be affected if the compact didn’t go through spoke, including a lawn service owner, two blackjack dealers, a floor supervisor, and a NYY Steak line cook from Haiti, who sobbed the moment she told Scott that her sister had died and she was taking care of her five children.
Scott was at his best with, joking with the cook: “Do you make a good steak?” he asked. He also asked the other speakers about their families.
A common theme among the speakers was uncertainty. Until they find out if the compact passes (some in Tallahassee are pessimistic; the tribe is running TV ads to build public support), the employees are not going to make major purchasing decisions. And they’re scared, and they made some good points about how many people are like them.
The tribe says about 3,600 jobs would be eliminated if the compact is not approved and the table games are shut down. Allen (correctly) demurred on whether the hotels would go up if the compact didn’t pass, citing the other facets of gambling being discussed in the legislature, including a lawsuit originating in Gadsden County that could torpedo the tribe’s exclusivity – but also their requirement to make payments to the state.
The proposed compact is the most lucrative in the nation, which is not surprising, considering the Seminoles are the most successful Indian casino operation, with more than $2 billion per year in revenues. They also out-delivered what they promised to the state in the past five years, paying out $64 million more than the $1 billion promised.
“What the Seminoles have done in this state is remarkable,” Scott said.
Allen noted that tribal compacts have been especially effective as a firewall against gambling expansion in states with only Indian casinos, such as Connecticut, Oklahoma, and California. There are eight racetrack casinos in South Florida, who, if the compact goes through, could see their slot tax lowered from 35 percent to 25 percent, and could begin to offer blackjack capped at $15 per hand.
At a post-event news conference, Scott said he respected the legislature’s process, but also said he was satisfied with his negotiations with the tribe.
Standing next to Allen and Chief James Billie, Scott said, “We did our part.”
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