Florida governor announces deal with Seminole Tribe on gambling money

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Florida Governor Rick Scott has announced an agreement between Seminole Tribe and the state, which would see the company extending its payment of more than $300 million a year as casino money to the state. The announcement comes in the wake of legislative leaders holding behind-the-scenes talks about revamping the gambling industry.

The tribe would keep on making the payments, as per the 2010 gambling agreement, through the 2019 legislative session. In exchange, the tribe will have exclusive rights to offer games such as blackjack at its casinos and will remain the state’s only slot-machine operator outside of Miami-Dade and Broward counties.

Scott, who will leave office in January after eight years, said “Today, I am proud to announce that the state of Florida has reached an agreement with the Seminole Tribe which ensures the tribe’s current commitment remains intact.… Since I took office, the Seminole compact (the 2010 agreement) has generated more than $1.75 billion which has helped our state make historic investments in things like Florida’s education and environment.”

This announcement is not expected to scuttle negotiations between House and Senate leaders as they try to enforce a sweeping gambling bill before the November election, when voters will decide whether to allow a constitutional amendment that would make it difficult to expand gambling. The proposed amendment, subject to approval, will allow the voters to decide on future gambling expansions, as opposed to the present system that is controlled by the legislature.

Rep. Jose Oliva and Sen. Bill Galvano, who will take over as House speaker and Senate president after the fall elections, have been in talks for weeks — without the Seminoles at the table — about a possible special session on the gambling issue.

The two leaders are reportedly close to agreement but have not closed out a deal that likely would encompass slot machines, controversial “designated player” card games and myriad other gambling-related issues. Lawmakers’ efforts to reach agreement on major gambling issues have repeatedly failed over the years.

“It’s a positive development but does not rule out a special [session]. There are still many questions regarding the statewide framework of gaming,” Oliva, R-Miami Lakes, said in a text message, referring to the agreement that Scott announced Wednesday with the tribe.

The ongoing discussions between the Republican legislative leaders are “more of a conversation than a negotiation,” Oliva said.

The agreement announced Wednesday would guarantee until May 2019 the continued flow of Seminole cash into the state budget — ostensibly one of the reasons legislative leaders have been floating the idea of holding a special session. But the agreement also could be part of an effort to head off attempts by lawmakers to expand gambling through steps such as allowing slot machines outside of Broward and Miami-Dade.

“It certainly is a positive step. However, we are continuing discussions regarding a special session,” said Galvano, a Bradenton Republican who has been instrumental in negotiating agreements with the Seminoles over the past several years.

The announcement from Scott’s office came after a series of developments that began with the 2015 expiration of one of the critical provisions of the 2010 compact. That provision gave the tribe exclusivity in being able to offer banked card games, such as blackjack.

While the tribe continued making payments to the state after the provision expired, the money was put in jeopardy because of a dispute about lucrative designated-player games at state-regulated pari-mutuel facilities.

A federal judge sided with the tribe in a dispute over whether designated-player games breached the Seminoles’ exclusivity over offering banked card games. The tribe agreed to continue making payments to the state, and gambling regulators promised to “aggressively enforce” the manner in which cardrooms conduct the designated player games.

But a temporary deal between the state and the Seminoles, in which the tribe agreed to continue making the payments, expired late in March, sparking the push for a new round of negotiations.

The Seminoles have never threatened to stop making payments to the state, although their Tallahassee lawyer, Barry Richard, has repeatedly said that is something they could do, given the federal judge’s ruling.

The new agreement “was intended as a level of comfort to anybody in the Legislature or the governor’s office or anywhere else that had any concerns that the tribe was intending to end the payments, which we never intended to do,” he said Wednesday. “So we gave people comfort.”

Source: orlandosentinel.com

Source: European Gaming Industry News

After starting out as an affiliate in 2009 and developing some recognized review portals, I have moved deeper into journalism and media. My experience has lead me to move into the B2B sector and write about compliance updates and report around the happenings of the online and land based gaming sector.