Seminole Tribe pushes for continued gambling monopoly as Florida lawmakers resist

The state government in 2010 granted the Seminole Tribe a gambling agreement, known as 'the compact', which allows the tribe to run blackjack tables and other banked card games at some of its casinos, as well as slots exclusively outside of Miami-Dade and Broward counties.

The section of the compact allowing banked card games expires in July, absent action from legislators. Sen. Bill Galvano, R-Bradenton, indicated that both House and Senate leadership were willing to let that happen.

"It's not necessary for us to act," said Galvano, the Senate majority leader and the main negotiator on the original agreement. "The governor didn't include those funds in his budget, and we're not planning on including them in ours, either."

Seminole representatives met with the Bradenton Herald on Tuesday to discuss the consequences of inaction, namely a loss to the state of just under $4 billion over the next 15 years.

Under the current compact including the banked card games provision, the Seminole Tribe projects a payout to the state of $6.1 billion over the next 15 years. Without that provision, the original agreement allows those payments to drop to $2.1 billion to the state over the same time period, according to James Allen, chief executive officer of Seminole Gaming.

"We need additional approval to continue table games, but looking back the relationship has been very positive," Allen said. "So we're hopeful that the relationship can continue, because if not we'll be in the position of laying off 3,100 individuals."

Further complicating the Seminoles' push, House Majority Leader Rep. Dana Young, R-Tampa, has introduced a 319-page bill to revamp gambling policies in Florida. If approved, it would effectively end all exclusive agreements with the Seminole Tribe and instead focus on tax revenue from other entities looking to cash in on Florida gaming.

"We're going to see how that bill does across the hall," Galvano said of Senate support for the House bill. "If the bill passes the House and comes over here, we'll analyze it then."

Young's bill would effectively open up the Florida gambling market to competition, allowing banked card games, casino resort destinations, racing and slot machines throughout the state under certain regulations. Those private companies would be subject to taxes, while the Seminole Tribe is not.

If Young's bill becomes law, the Seminoles could still operate under their current capacity, but they would not have their effective monopoly on gambling operations and would not have to make payments to the state under the original agreement.

If the Legislature passes a no-gambling bill and the compact provision is allowed to expire, the Seminole Tribe would have to shut down banked card games but could continue running slots absent any action until 2030.

Allen said keeping the compact between the Seminole Tribe and Florida would be mutually beneficial because it provides a balance between providing an outlet for gambling but also preserving Florida's family-friendly image since it limits the amount of casinos allowed in the state.

"We think (the compact) has slowed down the expansion of gaming, which has kept the family image of the state of Florida," said Jim Shore, general counsel for the Seminole Tribe. "But if they want to open up the gaming industry, that's their choice and we'll deal with it as it comes."

The family-friendly image is a looming concern for many legislators and has spelled death for gambling bills in the past. But Galvano indicated it wasn't a major issue on his mind this year.

"The reality is -- with us being the 4th or the 6th largest gaming state, depending on who you ask -- that we have a lot of gaming going on in this state," Galvano said. "We need to address that."