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Crist Hopes For Jackpot From Indian Gaming Pact

JASON BEHNKEN / Tribune

The deal allows Seminole casinos in Florida to upgrade from bingo-style slot machines to the more lucrative Las Vegas-style machines.

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By JEROME R. STOCKFISCH, The Tampa Tribune

Published: November 15, 2007

Updated: 11/15/2007 01:11 am

TALLAHASSEE - Gamblers soon may be doubling down at the Hard Rock casino east of Tampa after Gov. Charlie Crist on Wednesday announced a deal allowing card games such as blackjack along with upgraded slot machines at Seminole Tribe facilities.

The Indian gaming pact is likely headed straight to court, however, with legal questions swirling around several aspects of the agreement. House Speaker Marco Rubio has hinted at a challenge of any Indian gaming arrangement that doesn't go through the Legislature.

At a signing ceremony at the Capitol with tribal chairman Mitchell Cypress at his side, Crist noted that the state has been negotiating the gaming issue with the tribe for 16 years, spanning three gubernatorial administrations.

"We have negotiated the terms that we believe benefit both the tribe and entire state, and most importantly, the people of Florida," Crist said.

Under the terms of the 25-year agreement, known as a compact, the Seminoles get the right to offer "banked" card games, such as blackjack and baccarat, which remain illegal outside of tribal boundaries. The tribe also may upgrade from its Class II slot machines, which are glorified bingo games, to the more lucrative Class III Las Vegas-style machines.

Under the existing scenario, gamblers at Indian casinos play against each other. In the future, they will play cards and slots against the house, which means bigger jackpots and, according to many gamers, more excitement.

In return, the state gets a cut of the proceeds. Crist put the state's take at $1 billion over the first five years of the contract, and a half-billion dollars a year every year thereafter.

The tribe may not offer more exotic Class III gaming such as craps, keno or roulette. Gaming is limited to the seven existing casinos on tribal lands, and the state gets a regulatory role in the tribal casinos.

Hard Rock Is Expanding

Should the compact be approved by the U.S. Department of the Interior, which oversees Indian affairs, and should it survive legal challenges, it could also create a whirlwind of activity at the Seminole Hard Rock Hotel & Casino at Interstate 4 and Orient Road.

The resort is wrapping up a $120 million expansion that adds 50,000 square feet of additional gaming space, making it the state's largest casino. The ribbon-cutting ceremony is planned for Friday afternoon.

Seminole Gaming chief executive James Allen said he envisions adding 750 to 1,000 hotel rooms to the Tampa resort. In all, he anticipates the tribe would invest $1 billion to $2 billion at its seven casinos across Florida over five years, adding as many as 10,000 new jobs, if the compact clears the remainder of its hurdles.

That would create a huge need for new services, construction and workers. "This is not just an economic benefit for the tribe," Allen said.

The Indian gaming deal stems from a 2004 constitutional amendment approved by voters statewide that allowed residents of Broward and Miami-Dade counties to determine whether they wanted Las Vegas-style slot machines in existing parimutuel sites in their home counties.

Broward voters said yes, but a referendum failed in Miami-Dade. There will be another vote in that county in January.

Federal gaming law states that American Indian tribes may offer the same games allowed elsewhere in a state, and Broward's approval brought the Seminoles to the bargaining table with the governor's office.

Crist's position has been that if the state failed to negotiate a deal with the tribe, the federal government would step in and impose its own procedures. The Interior Department said as much in a September 2006 letter to the tribe. That letter included Interior's proposed rules, allowing Class III slots, but no state revenue sharing or regulatory role.

"I believe it would be irresponsible to allow that to happen - to not allow the people of Florida to share in the possibilities of billions of dollars of revenue over time," Crist said Wednesday. "That is a gamble I am not willing to take."

The Interior Department set several deadlines but allowed them to pass as the state and tribe made progress on negotiations. The department eventually set today as a hard deadline.

To convince the tribe to give up some of the proceeds and allow the state a regulatory role, Crist's negotiators sweetened the pot by allowing the banked card games.

Governor's Authority Questioned

That provision has riled gambling opponents. Also, the governor's stance that he alone had the authority to negotiate the pact and send it to the Interior Department for approval is already sparking talk of litigation.

In September, Rubio, a West Miami Republican, and his top five lieutenants sent a letter to Crist stating that an agreement is not valid unless it is ratified by the Legislature. The letter also stated that there is "no good reason" to allow the tribe to conduct games that are illegal elsewhere in the state. It also said courts have invalidated rules that allow the Interior Department to set deadlines and impose gaming procedures of its own.

Last week, Rubio publicized a legal opinion he sought from Jon Mills, a University of Florida law professor and former House speaker, who also said the compact is invalid if not approved by the Legislature.

Attorney General Bill McCollum also entered the fray. In response to a request by Rubio, McCollum opined that what is illegal for the rest of the state is also illegal for the Seminoles.

Wednesday, Rubio repeated his contention that the deal is invalid without legislative ratification.

"We have asked our attorney to review the details of the compact to examine the Legislature's legal options," he said in a statement.

Senate President Ken Pruitt, R-Port St. Lucie, said his chamber is also working with members and legal counsel in considering a course of action.

Others were stronger in expressing their disdain for the deal. Senate Democratic Leader Steven Geller, D-Cooper City, said Crist "left us no recourse but to file suit to stop this folly."

Reporter Dave Simanoff contributed to this report. Reporter Jerome R. Stockfisch can be reached at (850) 222-8382 or jstockfisch@tampatrib.com.

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