Florida lawmakers won't OK current Seminole gambling compact
Legislators want to protect non-Indian gambling ventures

By Josh Hafenbrack
Tallahassee Bureau
Copyright © 2009, South Florida Sun-Sentinel
Wednesday, March 05, 2009

TALLAHASSEE: Florida lawmakers put supporters of Gov. Charlie Crist's Seminole gambling compact on notice Wednesday: A deal won't come easily this year — if it comes at all.

A day after Crist used a statewide speech to lobby for speedy approval of his Indian gambling deal, legislators said they would not approve the compact as it was written and signed in 2007. Instead, ranking Republicans said they'll write a new version that carves out benefits for Florida's existing gambling industry, which has deep roots in South Florida.

"At this point, there's no compact," said Sen. Dennis Jones, R-Seminole, chairman of the Senate's Regulated Industries Committee. "If we move forward, we're going to try to create a compact that's fair to everybody."

But there's a "good chance" legislators won't accomplish that during the 60-day session that began Tuesday, Jones said. He noted the cash-strapped state is facing a number of difficult issues and must quickly strike a deal that is acceptable to legislators, the tribe, pari-mutuel racetracks and the governor.

The 2007 deal authorized the tribe to install Vegas-style slots, blackjack and baccarat at its seven resorts in exchange for at least $100 million in annual payments over 25 years. But because Crist bypassed the Legislature, the Florida Supreme Court struck it down.

This week, the Legislature's work gained fresh importance, when the U.S. Supreme Court declined to hear the tribe's appeal of the Florida court decision. That means if the Legislature doesn't approve a deal, the sovereign tribe will be in a legal limbo over whether it can continue operating card games.

"If there's no action on the compact this session, the tribe is going to move forward" on seeking federal approval to operate the slots and card games, said Barry Richard, the tribe's attorney. In that scenario, the state wouldn't get a dime, Richard added. "That would be crazy."

Big money is at stake. A study released Wednesday predicted that, as Indian casinos ramp up their operations, the revenue-sharing agreement would pump more than $400 million annually into state coffers by 2016.

Crist used his State of the State speech to call for lawmakers to "quickly approve" the terms his administration laid out.

"Approval of the compact will preserve and create thousands of jobs for Floridians and will safeguard us against the expansion of gambling to every corner of our state," the governor said.

But a day later, Senate and House members heard blunt, dire testimony from pari-mutuel owners and workers tied to thoroughbred and greyhound racing. Racetracks operating in Florida since the 1920s would shutter because of competition from Indian casinos, they said, and thoroughbred horse farms would be forced out of business.

South Florida's pari-mutuel tracks are pressing legislators to lower their tax rate on voter-approved slots from 50 percent to about 35 percent and give them "parity" with Indian casinos, including blackjack tables and longer hours of operations.

"I want to see — and I know you have the power — to level the playing field," said Tim Rituo, who raises thoroughbred horses in Davie and is dependent on the tracks.

Jones, chairman of the Senate Regulated Industries Committee, criticized the Republican governor's approach, which he said "left out half of the equation" — the pari-mutuel industry.

Asked if the Legislature would approve Crist's deal without modification, the House's lead negotiator on the issue, Rep. Bill Galvano, R-Bradenton, replied: "That's not going to happen." And cutting a new deal might be tricky, he said, adding that the "pivotal question" is whether to allow card games at Indian resorts.

"The session, we're already burning into it," said Galvano. "We don't have a whole lot of time, so there is a probability that it won't get done during the session. That's certainly not something I would like to see."

Later, Galvano called the Sun Sentinel and clarified that he still thinks a deal is possible. "It's a difficult issue and we're already into session, but I'm still optimistic," he said.

Josh Hafenbrack can be reached at jhafenbrack@sun-sentinel.com or 850-224-6214.