Advisers for Gov. Charlie Crist, Seminole Tribe
discuss court ruling on blackjack
By Jon Burstein
Copyright © 2008, South Florida Sun-Sentinel
Tuesday, July 08, 2008
Gov. Charlie Crist's top advisers met Monday with representatives of the Seminole Tribe to discuss what comes next after the Florida Supreme Court's decision that Crist had no authority to allow blackjack and table games at tribal casinos.
Crist said his office is weighing his response to the ruling — which could include trying to appeal the case to the U.S. Supreme Court. Crist negotiated an agreement with the Seminoles that gave them Las Vegas-style slots and blackjack in exchange for at least $100 million a year for the state.
The Florida Supreme Court ruled last week that Crist didn't have the right to allow the tribe to operate blackjack and other table games, which are illegal under Florida law. The decision has created a swirl of uncertainty, with the tribe maintaining it has federal approval to continue offering the table games it debuted June 22 at the Seminole Hard Rock Hotel & Casino in Hollywood.
"I just want to do what's in the best interest of Florida and education dollars," Crist said Monday during a visit to Fort Lauderdale. "We have a lot of options, which include continuing to work with the Legislature to alter the law."
The question of which games the Seminoles could offer will be resolved in one of two ways: through the courts or by negotiating a new deal that is approved by the state Legislature. The tribe has said it's reluctant to start negotiations with the Legislature, where conservative Republican leaders have been vocal about their opposition to expanded gambling.
Barry Richard, an attorney for the tribe, said no decisions were made in Monday's meeting with Crist's staff in Tallahassee.
The Isle Casino & Racing at Pompano Park filed a federal lawsuit last month in Tallahassee asking for U.S. District Judge Stephan Mickle to halt the tribe from offering blackjack and table games. On Monday, Pompano Park's attorneys asked Mickle to consider the Florida Supreme Court's decision before ruling.
Mickle has said he doesn't need any oral arguments on the injunction request, but he hasn't offered a time frame when he could rule, said Wilbur Brewton, one of Pompano Park's attorneys.
Tallahassee Bureau Writer Aaron Deslatte contributed to this report.
Legislature holds the dice on Seminole gaming and must roll prudently
South Florida Sun-Sentinel Editorial Board
Copyright © 2008, South Florida Sun-Sentinel
Tuesday, July 08, 2008
ISSUE: The Florida Supreme Court strikes down the compact.
Gov. Charlie Crist rolled snake eyes with the Florida Supreme Court and the Seminole Compact. An even bigger loser may very well be the state of Florida, depending on whether the state will strike a meaningful deal with the tribe or have the federal government impose one.
The court's ruling brought clarity to the constitutional argument over the governor's power and the role of the Florida Legislature, even if the governor's politically risky go-it-alone strategy would have produced a tangible benefit for the state. Now that the dust has settled on the separation of powers, the larger questions over gambling, and how much of it should be sanctioned by the state of Florida, remain unanswered.
The truth is that gambling isn't going away in Florida. Whether it's the scratch-off games, the cruises to nowhere or the slot machines at a Broward County horse track, gambling remains a popular activity and a recognized source of revenue for state and local governments.
The governor had little choice but to negotiate a pact with the Seminoles, particularly with the federal government threatening to interject a pact that would have given the Seminoles expanded gaming with no required benefits for Florida. House Speaker Marco Rubio, a fierce critic of gaming, was well within his rights to legally challenge the governor's negotiated $100 million pact without legislative oversight.
State lawmakers must now join the governor in crafting a compact that passes muster with both the Seminoles and the state. Lawmakers should not use the decision to fruitlessly obstruct a pact.
The Legislature should also lower the ill-advised tax rates the pari-mutuels agreed to back in 2005. Burdensome taxes imposed on those casinos undermine their ability to build gaming operations at dog and horse tracks, operations that have been sanctioned by the voters and offer a degree of competition to the Seminoles.
The state Supreme Court has spoken. It's now time for state lawmakers to act.
BOTTOM LINE: Legislators hold the dice, and they must act as partners, not obstructionists.
Pompano casino targets Seminole gaming
By Amy Driscoll and Marc Caputo
© 2008 Miami Herald
Tuesday, July 08, 2008
Pompano Park's Isle Casino asked a federal judge Monday to halt blackjack and other new card games at the Seminole Hard Rock Hotel & Casino, citing Thursday's Florida Supreme Court ruling that struck down the tribe's gambling agreement with the state.
The Isle, one of three state-regulated casinos in Broward County and a Hard Rock competitor, asked for a preliminary injunction to stop the games. Blackjack, baccarat and other games began June 22 at the Hard Rock near Hollywood and have continued, despite the Supreme Court ruling.
The request comes as part of a lawsuit the Pompano Beach casino and harness track filed last month in the Northern District of Florida against Gov. Charlie Crist and U.S. Interior Secretary Dirk Kempthorne. In the suit, the casino claimed the gambling compact signed in November by the governor and the Seminole Tribe -- owners of the Hard Rock chain -- is invalid because it violates the federal Indian Gaming Regulatory Act, which allows tribes to play only games already authorized in Florida.
The Isle Casino argued to U.S. District Judge Stephan Mickle that blackjack and other so-called ''banked card games'' are not allowed in Florida, and the governor exceeded his authority by giving the tribe both Las Vegas-style slot machines and card games -- similar grounds to those cited by the high court when it struck down the agreement last week. In banked card games, such as blackjack, players are pitted against the casino, rather than other players. The suit asked the judge to set aside Kempthorne's approval of the compact, which would invalidate it.
Last week's Supreme Court ruling said the governor couldn't authorize card games for the tribe that are illegal in the rest of the state.
The Seminoles' attorney, Barry Richard, and other tribe representatives met with lawyers in the governor's office Monday to determine their next move.
''The discussion today was on whether to file a motion for rehearing or clarification,'' Richard said.
He said he expected a decision by the middle of next week. The ruling by the Supreme Court doesn't become final until July 18, Richard said. A motion for rehearing would postpone that date for weeks or months longer.
MONEY RETURNED
The compact allowed the tribe the exclusive right to the card games in its seven Florida casinos, and in exchange the tribe was required to give at least $100 million a year to the state. The tribe has already paid $60.4 million as part of the agreement. Invalidating the gambling pact would mean the money likely would have to be returned to the tribe.
The games have continued at the Hard Rock, despite the court ruling. Richard has said that the final authority on the games offered on tribal land rests with the U.S. Interior Department, not the Florida courts.
Crist said Monday that he and his legal staff are still reviewing the opinion, and said a number of scenarios are open, including asking for a rehearing, appealing or letting things slide along until he has a chance to deal with the new Legislature after November elections.
''That's a possibility as well -- that you might want to have status quo go for a while. You know, the machines are there, obviously,'' Crist said. ``It seems to me that giving this some time to marinate a bit would be prudent. And that's what I plan to do -- and then have a chance to do what is best for Florida. That's the most important thing. Having the extra money to pay teachers more is important to me and it's important to the Legislature.''
GAMBLING OPPONENT
Outgoing House Speaker Marco Rubio won't be in office next year, but an equally staunch gambling opponent, Republican Ray Sansom of Destin, will replace him and likely balk at any gambling expansion that includes table games like blackjack.
Rubio, the West Miami Republican who launched the suit against Crist that led to the Supreme Court decision, on Monday took issue with statements made by George LeMieux, Crist's former chief of staff. LeMieux said the Legislature should have passed a proposed bill giving lawmakers a say in ratifying the compact. But Rubio said the Legislature has that right to begin with, and the problem was the actual compact itself and its approval of illegal gambling.
''The governor's office was going to bring this to the Legislature. But they only changed their mind at the last minute when they realized we wouldn't go along with it,'' Rubio said.
Crist does have one ace in the hole: Time. The longer he stalls, the sooner he'll have a say in naming new state Supreme Court justices. Four of the seven justices will be leaving the court by early next year.
''I respect the court's opinion, I do,'' Crist said. ``And I look forward to being able to name a majority of their membership soon.''
FLORIDA BETS ON GAMBLING: Crist must deal or fold
Palm Beach Post Editorial
© 2008 Palm Beach Post
Tuesday, July 08, 2008
In casinos, the laws of chance always favor the house. In the courts, Gov. Crist found out last week, the laws of Florida also favor the House. And the Senate.
The Florida Supreme Court ruled unanimously that Gov. Crist exceeded his authority last November when he signed a deal that, in exchange for payments to the state of at least $100 million a year, gave the Seminole Tribe exclusive right to offer high-stakes card games such as blackjack and baccarat at seven tribal casinos. For the deal to be valid, the court said, the Legislature would have to approve it. Such approval is a long shot, since House Speaker Marco Rubio, R-West Miami, opposes expansion of gambling and filed the lawsuit that overturned the agreement - also called a compact - that the Supreme Court stuck down.
At this point, the long shot is Gov. Crist's best shot. He should meet with Rep. Rubio and Senate President Ken Pruitt, R-Port St. Lucie, and discuss how to preserve all or part of the payment. If the Legislature won't deal, the Seminoles probably could offer high-stakes slot machines without having to pay the state anything.
This all began in 2004, when Florida voters amended the state constitution to allow high-stakes slots at racetracks and jai-alai frontons in Miami-Dade and Broward counties, if the locals went along. Broward said yes in 2005. After first rejecting gambling, Miami-Dade said yes in January. The Seminoles operate two casinos in Broward.
Until then, Indian tribes had been restricted to low-stakes slots. But they claimed that federal law allows them to offer any kind of gambling that is legal anywhere in the state. The Interior Department was on the verge of giving the Seminoles high-stakes slots - with no payment to Florida - when Gov. Crist signed the compact that gave the tribe the slots plus, for a premium, the high-stakes card games.
The tribe began offering the new games two weeks ago. Even if the Legislature were to let the Seminoles continue conducting high-stakes card games - perhaps in exchange for a bigger payment - the mess might not be solved. Non-tribal casino operators, which under the constitution get only slot machines, have filed suit claiming that the state can't let the Seminoles offer the new card games. The Seminoles reply that if any high-stakes game is allowed in Florida, all high- stakes games must be allowed in their casinos. The Seminoles add that they don't need legislative or state approval as long as the Interior Department, which contains the Bureau of Indian Affairs, approves of their gambling operations.
Gov. Crist was right to seek money the state might otherwise have lost. He was wrong to not ask the Legislature, and he was wrong to pretend that the tribe's $100 million could end Florida's budget problems. He'll need to break away from the auditions for vice president, get back to his day job, and save what part of this deal he can.
Gambling Governor Loses His Deal
In High-Stakes Game Over Casinos
Editorial - The Tampa Tribune
©2008 Media General Inc.
Tuesday, July 8, 2008
Few observers of Florida's gambling mess are surprised that it has come to this puzzling point.
The state Supreme Court has thrown out an agreement Gov. Charlie Crist made that allowed the state to collect truck loads of taxes from the state's tribal casinos. If no replacement deal is made, the federal government is likely to give the casinos slot machines tax-free.
A majority of the Legislature might refuse any deal in order to take a high-profile stand against the expansion of gambling. The fear of such political posturing is why Crist tried to cut lawmakers out of the process.
His contract with the tribes was a good one but he was wrong to try to stretch his executive power. He gave the tribes the right to conduct table card games that would be illegal elsewhere in Florida.
In December we urged Crist to submit his plan to the Legislature for ratification and not wait until the Florida Supreme Court ordered him to. The court was exactly right when it said last week that the governor lacks the power "to bind the state to a compact that violates Florida law."
The best solution now is for the Legislature to either endorse Crist's agreement or else say how it will replace the $100 million a year in revenue the tribes have agreed to pay.
A number of principles are at stake:
The governor doesn't make laws in Florida. Only the Legislature, or the voters through constitutional amendment, can do that. That issue is settled.
Gambling in Florida should not expand, at least not any more than is necessary to make sure the state treasury gets a fair share of the take. Whether it will is an open question. By giving the casinos, including the Seminole Hard Rock Casino in Tampa, exclusive rights to blackjack and baccarat, Crist would have kept those games out of the dog tracks and other state-approved gambling venues. Some lawmakers don't think that's fair.
In theory, all parties should be treated equally. That is easier said than done, given the federal rules that allow the reservations to conduct any gambling that a state allows anywhere else. Unless the tribal casinos get a monopoly on something, they may escape with paying nothing to the state. The only way to treat the state's other tracks and poker rooms fairly would be to expand gambling everywhere, something neither most voters nor most lawmakers want to do.
Less gambling is better than more gambling. Money gambled at slot machines, card tables and on lottery tickets is money not spent elsewhere in the economy.
Voters need to be more careful what they ask for. Florida voters made a watershed decision in 1986 when they approved a state lottery. They unwittingly opened the door for more gambling, and opened it wider still in 2004 when they voted to give Broward and Miami-Dade counties local control over adding slot machines to parimutuel sites. When Broward said yes, it was only a matter of time until slots also appeared in the Indian gambling halls. Now the state has $30 scratch-off tickets, is joining the nationwide Powerball game, has tribal casinos that resemble the best Las Vegas has to offer, and has energized the non-tribal gambling industry to push for more action here.
With all that going on, any talk of sacrificing Crist's $100 million a year to get tougher on gambling is just a bluff. The state needs what Crist negotiated, both the money and clear rules limiting gambling's relentless expansion.