It has been a full year since Florida Governor Rick Scott proposed a seven-year agreement with the Seminole Tribe of Florida that would have brought $3 billion to the state, while giving the tribe exclusive rights to certain pieces of the state’s gambling pie. And the way the legal rulings have played out this year, boy, it looks like a missed opportunity.
Rather than pay $3 billion for the next seven years, the Seminoles are in a position to pay zero for the next 14. A U.S. judge ruled in November that because some Florida card rooms, with permission from the state, offered Ultimate Texas Hold ‘em, 3-Card Poker and Pai Gow, in the name of “poker” a vital portion of the compact was voided, and the Seminoles could offer blackjack and other table games through 2030. That portion of their compact had expired last year, and was being renegotiated.
The tribe had been paying $250 million annually. Now they don’t have to pay a cent. Those banked card games, offered in about half of Florida’s pari-mutuel card rooms, took in an estimated $15 million annually of the state’s $147 million annual poker revenues. The state gets 10 percent, so for $1.5 million they lose out on about $250 million.
But that Scott proposal from December 2015, which died in legislative committee, also would have enabled South Florida horse tracks, dog tracks, and jai-alai frontons to offer blackjack (with a $15 maximum bet per hand), and added slot machines at the Palm Beach Kennel Club. I think Scott has had some misplays, including ticking off some legislators last year with the way he announced this proposal, but this compact extension was not one of them.
Also note that the Florida Supreme Court is sitting on a case that would make for even more havoc. Gretna Racing, based in upper northwest Florida, is arguing that it should be allowed to have slots because voters approved that via a referendum. If Gretna gets slots, five other Florida counties that had a similar referendum would likely file legal suits – and that would be another dent in the Seminoles’ exclusivity outside of South Florida.
The Florida legislature met in January last year – there were spring elections and they wanted to get in, get their work done and get out – but don’t meet until March this year. Legislative leaders, naturally, have spoken more eagerly about reaching an agreement with the Seminoles. What do they have to lose?
But they might need a reality check. Florida House Speaker-designate Richard Corcoran was quoted as saying lawmakers again will consider a gambling agreement with the Seminole Tribe of Florida. But he also wants a reduction in gambling. Hey, good luck with that.
Meanwhile, the Seminoles themselves don’t quite have their own house in order. They are prepping for their second chairman election after ousting James Billie in September.
Members complained that the winner of an Oct. 31 vote, Marcellus W. Osceola Jr. did not meet residency requirements. Seminole rules require office-holders to reside on one of the tribe’s reservations. Osceola owns a home on the Hollywood reservation, but it was undergoing repairs for mold damage and he has been living elsewhere.
The tribal council handles all Seminole affairs, including selecting executives to oversee their seven casinos, which garner more than $2 billion annually. That revenue is shared among the tribe’s 4,000 members. Those familiar with the situation say the selection of a chairman likely will not affect gambling decisions, which are overseen by Seminole Gaming CEO James Allen.
Mark Twain noted that “Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do.” Here in Florida, we don’t have to wait that long.
