If Florida fails to achieve a compact with the Seminole Tribe in negotiations to upgrade its casinos to Grade III machines by the end of this month, then the US Department of the Interior will impose rules. Broward County now has the Las Vegas style machines and, under federal law, Indian Tribes are entitled to match gambling levels permitted within the state. Last April compact negotiations were abandoned.

Governor Jeb Bush, a notorious gambling opponent except in the case of the Florida lottery, has already stated that any federally imposed regulations would be opposed through the courts. If no compact is agreed, the Seminole Tribe could operate Class III machines around the clock with a minimum 75% payout, according to draft regulations. The four Broward County pari-mutuels are permitted to operate only 16 hours a day and must pay out 85% of money wagered.

The Seminole Tribe has called for Florida’s Legislators to be involved in compact negotiations as any agreement would need legislative approval. This appears to have been one of the sticking points between tribe and state. Another is the small operation named Big Cypress Casino that the Seminoles have opened in a remote area of the Everglades, home to the rare Florida panther. With no plans to expand out of the present tent housing 63 Class II machines, the tribe nevertheless wishes to maintain the option.

Other points open to negotiation, should the state restart discussions, are the number of machines the Seminole Tribe could operate and how much revenue would be paid to Florida. If the federal regulations are introduced, the tribe has stated it would still be willing to negotiate with the state, but would not be doing so from a position of weakness. (E-11.23.06)

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