TBO.com - TBO is Tampa Bay Online

Parimutuels Warn Florida About Tribe Compact

ADVERTISEMENT

By CATHERINE DOLINSKI

cdolinski@tampatrib.com

Published: February 13, 2009

TALLAHASSEE - The state's gaming compact with the Seminole tribe could cost Florida billions of dollars in the long run, parimutuel owners argued on Thursday.

Nontribal casino and racetrack owners as well as horse breeders turned out in force to convince a House panel that their industries are in an economic slump made far worse by the Seminoles' gaming compact.

The compact, which Gov. Charlie Crist negotiated in 2007, authorizes casino-style slot machines at the Seminoles' casinos and grants them exclusive rights to banked card games such as blackjack. The state Supreme Court ruled last summer that Crist lacked authority to execute the compact without involving lawmakers, but the tribe continues to offer the card games.

Lawmakers are now contemplating whether to ratify that compact or negotiate a new one.

In exchange for the exclusive card game rights, the tribe agreed to pay the state a portion of their proceeds - at least $100 million a year, unless its annual gross revenue falls below $1.37 billion.

Dan Adkins, CEO and vice president of Mardi Gras Gaming, told the House committee reviewing the compact that it makes it too easy for the tribe to low-ball their revenue figures and deprive the state of its share.

Meanwhile, he said, the market advantages in the compact all but assure the death of non-tribal gaming, and the end to Florida's hefty tax collections on it. "Ratify this compact, put us out of business, and for the next 25 years, you have the chance of seeing zero."

Jim Allen, head of gaming operations for the Seminole tribe, called that a distortion. The compact, he said, strictly defines what the tribe can deduct from its profit margin. The economic pressures on the parimutuels, he said, predate and remain separate from the gaming compact.

The tribe hopes that lawmakers ratify the existing compact, in exchange for guaranteed payments of $288 million through June 2010 and the promise of thousands of new jobs from expanded casino operations.

Parimutuel owners claim that they can offer a competitive deal if they can get a "level playing field" - for example, equal rights to offer games. Breeders of racehorses also chimed in, since the so-called racinos effectively subsidize them. Several breeders testified that they are either leaving Florida or contemplating it.

It appeared Thursday that the House panel may also tackle the economics and regulation of non-tribal gaming, in addition to compact terms for the Seminoles.

"It really, really disturbs me that we have ongoing taxpaying businesses, that have been established in this state for many years, that we hear from them clearly today that if we don't do something significant, they're going to die," said Rep. Alan Hays, R-Umatilla.

Reporter Catherine Dolinski can be reached at (850) 222-8382.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT