Crist wants to negotiate gambling deal with Seminoles to boost revenues
By Linda Kleindienst
Tallahassee Bureau Chief
Posted March 8 2007
TALLAHASSEE – In a dramatic departure from his predecessor, Gov. Charlie Crist said Wednesday he is willing to negotiate a gambling compact with the Seminole Tribe -- a move that could bring millions into Florida's cash-strapped treasury.
"I think that's the smarter way to go," Crist said.
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Former Gov. Jeb Bush, a staunch opponent of gambling, stonewalled negotiations with the tribe, which wants to install Las Vegas-style slot machines similar to those voters approved for four Broward County pari-mutuels.
No meetings have yet been held or scheduled with the tribe, but Crist said it would benefit state taxpayers to strike a deal that provides money to the state in exchange for expanded gaming rights for the Seminoles.
Barry Richard, an attorney for the Seminoles, said the tribe might be willing to pay the state for the right to have more than the 1,500 slot machines that the pari-mutuels are limited to, or other types of casino games.
"We could enter in an agreement with the state that it gets a certain percentage of revenue for machines over 1,500," Richard said, although he said he had no idea how much the Seminoles would be willing to pay.
The possibility of generating new tax dollars through the Indian-run casinos comes as Crist and legislators are expecting a drop in sales tax and real estate tax revenues from Florida's cooled-down economy. A panel made up of representatives of the governor's office, Legislature and the Department of Revenue has warned the state could bring in up to $800 million less than expected in the next budget year.
On Tuesday, in a move that could compel the state to come to the bargaining table, the Seminoles filed suit in Miami claiming they are going to suffer "significant economic harm" because of their competitive disadvantage in the slot machine area. Filed against the U.S. Department of the Interior and Interior Secretary Dirk Kempthorne, the suit asks the federal court to force the U.S. government to develop regulations that will allow the Seminoles to have the same type of slot machines as their commercial Broward rivals.
Because of a constitutional amendment adopted by state voters in 2004 -- and later approved by Broward voters -- two racetrack casinos already are operating in Hallandale Beach, at Gulfstream Park and Mardi Gras Racetrack and Gaming Center. Pompano Park Harness Track is scheduled to debut its slot machines next month and Dania Jai Alai is planning to open in 2008.
The tribe has three casinos operating in Broward -- one in Coconut Creek and two near Hollywood -- with the largest at the Seminole Hard Rock Hotel & Casino. But the tribe is limited to bingo-style slot machines that generate less revenue and are less popular than the Las Vegas-style slots.
Despite the lawsuit, indications are the tribe would prefer to make a deal with Crist.
"They would prefer to be operating in cooperation with the state ... they don't want to have constant fights with the state," Richard said.
The tribe currently has seven gambling locations statewide with almost 8,600 bingo-style slot machines and 230 poker tables that generated $1.3 billion in revenue in 2005, Richard said. The state gets no money from the tribe while the pari-mutuels have to pay a 50 percent tax on their slot profits.
The Seminoles argue they are entitled to Las Vegas-type slots under a provision of the federal Indian Gaming Regulatory Act, which gives tribes the same gambling options featured elsewhere in the state. Because Broward pari-mutuels are now allowed to have them, the Indians want the same.
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