Expanding gambling in Florida has become as high-stakes a game as anything found in casinos.
Do legislators bet on Las Vegas-style gambling throughout the state, or do they support the Seminole Tribe of Florida?
Upscale “destination” casinos—with gambling and flashy entertainment—could create thousands of jobs and stimulate the economy, especially in South Florida, reports Kathleen Haughney in the Sun Sentinel. But the cost could be more than $200 million every year, which the Tribe will stop paying the state if it loses exclusivity to offer card games in its casinos.
“That’s the $250 million question, isn’t it?” Nick Iarossi, a lobbyist for Las Vegas Sands, told the Sun Sentinel. Iarossi hopes the Legislature permits the Sands to build a resort in South Florida.
As a sovereign nation, the Tribe does not have to pay state gambling taxes or follow Florida gambling laws, but the 2010 “Compact” allows them to operate card games exclusively, such as baccarat and blackjack.
In exchange for being the sole operator of slot machines throughout the state (except South Florida, where competition is allowed), the Seminoles pay the state nearly $1 billion over five years. That agreement is set to expire in 2015.
The Tribe runs several highly profitable casinos, including two under the Hard Rock label, with Tampa Hard Rock the sixth biggest casino in the world.
Violating the deal could create a hole in the state budget — a more than $200 million dollar hole.
Legislators could use one of several strategies: tax new destination casinos heavily, a move extremely unpopular with casino operators; or limit destination casinos to Broward and Miami-Dade, the two counties where the Seminole Tribe has no exclusivity. The Legislature could then ask the Tribe to pay less to maintain its monopoly in the rest of Florida.
Until then, the House and Senate Gaming Committees will embark on a statewide listening tour to get feedback from the public. The first meeting is Oct. 23 in Coconut Creek.
For its part, the Seminole Tribe has actively lobbied lawmakers to consider keeping the compact alive. It has contributed $919,474 to a number of candidates statewide, including $500,000 to Gov. Rick Scott’s “Let’s Get to work” re-election committee, as well as more than $250,000 to the legislative majority Republican Party of Florida.
