Florida-Seminole Indian Casino Gambling Deal Creates Controversy

The Florida Seminoles last week signed a gambling compact at its seven locations, this week the Parimutuals in Broward County will file suit.

Last week, Governor Charlie Crist signed a compact with the Seminole Indian Tribe to allow for gambling expansion at the Tribe's seven locations, and will allow for exclusivity in all casinos except for those in Broward and Dade Counties.

The pact gives the Tribe the right to conduct tables games such as blackjack, pai-gow, baccarat, Vegas style slots and other games, while it does exclude roulette and craps. The deal calls for the state to receive a minimum of $100 million annually, and an increase of revenue share over certain limits, with no cap, over a period of 25 years.

Parimutuals are speaking up about what a bad deal it is not just for them but also for the State. Once the tribes casinos offer these games, revenue is expected to drop dramatically from the existing racinos in Broward County, which has been lower that expected, and at other tracks in the State.

The parimutuels are also claiming that the agreement will put the new racinos and existing tracks into financial ruin, cost hundreds of jobs, and create a huge loss of tax revenue to the state.

The racing industry in Florida has seen a large drop in paid attendance over the past ten years, going from 7.6 million to 2 million and reducing revenue to the state from $71.5 million to $35 million annually in that period.

Local area tracks around the state have already seen a drop in both attendance and revenue where an existing Indian casino is located within 50 miles. Without the ability to compete on a level field, many of the racinos and stand-alone tracks will be forced to either close or find a ways to partner with the Seminoles to offer racing on Indian lands.

Tracks that offer Vegas-style slots have been trying to get video lottery type terminals that offer such games as blackjack and roulette, without success.

Two things are clear, first, that interest in animal racing has declined dramatically in the state, and second, the state must find a way to keep these long established businesses from closing.