Tough Final Stretch for Seminole Slots 

To say that the Seminole Tribe of Florida has fought for the right to install Las Vegas-style slot machines is an understatement.  The tribe has petitioned many Presidents, sued governors, and waited more than twenty years. 

Las Vegas-style slot machines are formally known as Class III slot machines.  The Seminoles currently offer Class II machines.  Class III machines carry higher payouts and, in theory, attract more players; this of course means more money for the casino.

Finally, thanks to current Florida Governor Jeb Bush, they will receive their slot machines.  However, when, is a separate issue. 

The road to finally installing the games in the casino is long and bumpy.  The tribe cannot hang up their fighting gloves just yet.  The next step is to settle on an agreement with Governor Jeb Bush, who has been in long time opposition of gambling in Florida.  Bush has made it his new goal to severely limit gambling in the state of Florida since Broward County residents voted in support of slot machines.  After settling on the agreement, it must receive the approval of the U.S. Department of Interior.  Not a big deal, except for the fact that the Department’s Secretary works for Bush’s brother, President George W. Bush.

To add to future hardships for the Seminole tribe, four Broward pari-mutuels are about to give its Hard Rock Hotel & Casino very stiff competition.  A bill just approved the installation of 1,500 Las Vegas-style slot machines in each pari-mutuel after June 4^th.  The tribe has a branch of Hard Rock Hotel & Casino located near Hollywood, Florida, within Broward County. 

The other Hard Rock is located in Tampa, Florida.  There is no particular reason to believe the glitzy casinos are particularly desperate for business.  It is clear, however that the tribe would like to keep things that way.  Governor Bush received a message on Friday that the tribe would like to settle on an agreement as soon as possible. 

According to Seminole Tribe spokesperson, Gary Bitner, “The tribe had been trying since 1991 to negotiate a compact with the state of Florida without success.  The governor's announcement that he is committed to achieving a quick and fair agreement offers new hope that a compact can be achieved.'' On the other hand, Bitner was sure to add, ''The tribe cannot wait indefinitely.''

The tribe does not intend to give up on petitioning federal authorities for permission to house, not only Class III slot machines, but blackjack, roulette, keno, and craps as well, without the necessity of a state compact.  The tribes have pursued this avenue since 1999.

According to Bitner, it does not matter what route is taken, “there is no question that the tribe has a right to offer slot machines and card games, since those games are now expressly permitted under Florida law.''

Nevada gaming consultant Ken Adams says, “What it will get down to is how many [slot machines] and where and what it's going to cost.”

It would be a mistake to hold your breath until the Seminoles flood the state with profits from revenue sharing.  Last year, after reaching an agreement on Class III games, Native American tribes in Oklahoma only installed 2,000 slot machines; a big surprise to the state, expecting the tribes to install some 30,000 machines and generate millions in revenue-sharing checks.   “The tribes put in only 2,000 games because they're making money off their existing machines,'” said Adams.

Adams projects 5,000 Class III slot machines for the tribes in Florida.  He does not expect them to accept any revenue sharing agreement that exceed 10-15% although the Broward County pari-mutuels will be taxed 50% for their slot machines.  Historically, the Department of the Interior’s Bureau of Indian Affairs has found any agreement exceeding the 15% mark to be excessive. 

“I couldn't guess what the tribe's strategy would be, but I would guess it would begin with sovereignty. ‘This is our land. We can do what we want here.’ They could argue that the state limiting it in an artificial way doesn't make any sense,” said Adams.  Bush ''is in a very difficult position, my guess is he's going to take a very slow approach and try and stretch this out as long as he can.''

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