With an extension to 15 October for Florida to negotiate a compact with the Seminole Tribe, state officials last week released a draft 25-year agreement that would allow Class III slot machines at seven tribal casinos and could open the door for some table games. Some House legislators are still opposed to any gambling expansion and insist that any compact reached with Governor Charlie Crist must be approved by the Legislature.

The recently licensed pari-mutuels in Broward County will push for full Las Vegas style gaming for their facilities, if the Seminole casinos upgrade, in order to have a level playing field. Gaming revenues have fallen short of predictions so far as customers have proved loyal to the Seminole casinos, even though only Class II gaming is available as yet. Operators want protection for pari-mutuel gaming in any compact between the state and the Seminoles.

Under the draft agreement, the tribe agrees to pay the state an as yet undefined percentage of casino revenue. The Seminoles have previously said that they are willing to pay US$50 million up front and up to US$100 million a year. In contrast the pari-mutuel slot machines must pay 50% of gross gaming revenue, which amounts to around US$200 million. The payment proposed by the Seminoles would be just 10% of total profits.

If Florida does not reach agreement with the Seminoles then the US federal agency, the Bureau of Indian Affairs, is likely to impose one and the state would not benefit. Any compact must be approved by the Department of the Interior. There is already a federal lawsuit filed in Miami by the Seminole and Miccosukee Tribes accusing the state of not negotiating in good faith. The draft agreement contains clauses to end tribal payments if non-tribal casinos are opened outside the Broward and Miami-Dade districts, or it net winnings fall below US$1.37 billion a year. (E-10.09.07)

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