A gambling dispute between the state of Florida and the Seminole Tribe is not likely to reach conclusion until October this year. Both parties have requested a federal judge to postpone the trial until fall, which could potentially decide the fate of the country’s third largest tribal casino gambling market.
For the most part, the five-year agreement between the state of Florida and the Seminole Tribe expired at the end of last year. As part of the agreement, the tribe had exclusivity for blackjack, which officials in Florida now want stop. Negotiations for the new agreement took place last year between Gov. Rick Scott and the Seminoles. However, the new compact was not approved by the legislature since it was an omnibus gambling package.
Experts say that the Seminoles would have been allowed to retain blackjack and other games such as craps and roulette due to a guaranteed $3 billion revenue sharing payment to the state over a period of seven years. Incidentally, tribal gaming is regulated in Washington. Despite there being no agreement in place, the Seminoles continue to conduct business at its casinos. They claim that if no deal is made with the state then many workers employed at the casinos could be out of work while further investments in its properties would come to a standstill.
Currently, the Seminoles continue to run blackjack and pay a share of gaming win to the state since there is no agreement in effect. Since the agreement has expired they are not bound to pay the state $200 million per year.
Florida lawmakers’ rejection of the new gambling compact has put the multibillion dollar tribal gambling market at risk with the state, potentially billions over the next decade or more. The House Regulatory Affairs Committee had earlier agreed to the new compact but since the legislature did not ratify the deal the Seminoles are now operating blackjack without an agreement. However, the state wants the tables at its seven casinos removed, which is now the focus of the dispute in court. According to Gov. Scott, as many as 3,700 workers risk unemployment if lawmakers did not act on the agreement.
Experts say that both the state and the Seminoles have filed federal lawsuits. However, the tribe continues to give the state money despite no compact in effect. If the state of Florida loses in court it could set the state back as much as $2.4 billion annually. For the most part, the new agreement would allow pari-mutuels to continue casino operations but stop racing on site. Experts also observe that the Sunshine State has found it difficult to bring about major reforms to its gambling industry. Las Vegas Sands Corp. shelved its plans to build a multibillion dollar casino in South Florida after heavy lobbying in 2014. The reason they claim was due to the Seminoles role in the state’s gambling arena.
