Gambling talks start and stop again with no resolution

By Mary Ellen Klas
Times/Herald Tallahassee Bureau
The Buzz - Florida Politics
© 2009 St. Petersburg Times/Miami Hearld
Satuday, Aug. 1, 2009

Lawyers for Gov. Charlie Crist and the Seminole Tribe met on Wednesday for the second full day of talks since they began negotiations in early July and many of the same issues that divide them remain, said George LeMieux, who is representing the governor.

But Rep. Bill Galvano, the Bradenton Republican who led the House negotiations on the compact legislation, suggested that the tribe is operating under flawed thinking if it assumes it is entitled to all the games it was awarded in the first compact. And, he adds, it is now operating those games illegally.

The sticking points continue to be: giving the tribe the exclusive right to operate slot machines and card games; the scope of the games they will be allowed to offer; the money they will agree to pay in exchange for their exclusivity; and the amount of state regulation they will accept.

The tribe has balked at the take-it-or-leave it deal lawmakers offered that urges the governor to give the tribe black jack and other banked card games at no more than three of its seven casinos, and pay the state no less than $150 million a year, LeMieux told the Herald/Times.

The first compact the governor negotiated with the tribe, which was voided by the Florida Supreme Court, allowed the tribe to operate the card games at all its casinos and pay the state $100 million a year. The tribe has since opened slot machines and card games at its two Broward casinos and its casino in Immokalee but, under the legislature's plan, it would have to give up the card games in Immokalee.

"The tribe's position is, if they have less possibilities to have gaming, they are going to give the state less revenue,'' LeMieux said.

But Galvano questions their suggestion that they would be given "fewer" games. "Their effort to use the voided compact as a floor is just not right,'' he said. "The court found that there was no deal ever and when we looked it it we looked at it fresh with a new perspective with testimony and reviewed the facts to the best of our abilty.''

Galvano said the U.S. attorney and the Florida attorney general have jurisdiction to go in and shut down the trib'es Class III slot machines and banked card games but may be waiting to see if there will be any resolution of the compact."If the proposed compact doesn't come together, I don't know that there is anything else the state can do,'' he said.

If the compact talks fail, the state can ask the federal government to shut down the games, just as the tribe can as the federal government to step in and impose a compact on the state.

"That’s why there’s so much to be risked by turning away from a very reasonable deal,'' Galvano told the Herald/Times. He noted that after the legislature ratifies the compact, it has to pass review by the federal government "to make sure it is fair.''

LeMieux, however, makes it clear this is no easy task. "We're trying to come to an agreement that Seminoles and the Legislature and the governor can agree with,'' he said. But, while lawmakers provided the governor with certain conditions "we're remembering this is a negotiation and the Seminoles have to agree with them too."

He said talks will continue by phone next week.


Dear Chuck, stop the gaming 'shenanigans.' Sincerely, Marcelo

Posted by Times Editor
© 2009 St. Petersburg Times
Satuday, Aug. 1, 2009

A letter from Miami Republican Rep. Marcelo Llorente
To: Department of Business and Professional Regulation

Dear Secretary Drago:

As you are aware, the Florida Legislature passed SB 788, which set forth a framework of parameters for gaming on tribal lands as well as amended various provisions of the pari-mutuel statutes. The legislation provided a number of benefits to the pari-mutuel industry, including lower tax rates and license fees in addition to other amendments to pari-mutuel laws. Of particular note, the bill closed the quarter horse "loophole" and subjected applicants for quarter horse permits to the same requirements and limitations that are imposed upon other pari-mutuel permit applicants. This was done to shut the door on the potential for unfettered growth of quarter horse racing and the accompanying card rooms and related pari-mutuel activities.

Due to the long history of contention amongst those in the pari-mutuel industry and in an attempt to minimize the shenanigans that have too-often encumbered such legislation, the effective date for the amendments to the pari-mutuel statutes were tied to the effective date of a gaming compact. The disadvantage to such approach was that for certain provisions like the closing of the quarter horse loophole, the bill acted as a last call for anyone interested in taking advantage of the loophole. To further complicate matters, the Legislature also took steps to allow the racing facility in Hialeah, a historic racing venue which has a quarter horse permit, the opportunity to revive itself by allowing that facility the opportunity to offer slots once it has conducted racing for two years. The intent of this provision was not to create a new cottage industry of quarter horse racing slot machine operators in South Florida.

Now, Miami International Airport seeks to squeeze in as the Legislature is closing the door on the quarter horse loophole. Its efforts are presently aimed at obtaining a quarter horse permit to allow it to either lease quarter horse races or run the races in its parking lots with the ultimate goal to offer slot machines at its airport terminals. I do not think any of my colleagues envisioned this type of activity being a possibility or even encouraged under SB 788. Moreover, it clearly runs contrary to the intent of SB 788 which was to close the quarter horse loophole.

It is my understanding the Division, after receiving a completed application, may have as few as 120 days in which to act on a quarter horse permit application, or the application will be deemed approved. I would respectfully request any decisions on such applications be delayed to the extent possible under the law. Such delay would give the Legislature the opportunity to act and give clarity to its intent to close the quarter horse loophole.

Thank you for your attention to this matter. I am available if you have any questions or wish to discuss these issues further.