Breaking News: Florida and the Seminoles Sign Compact Agreement

Breaking news out of Florida that may signal the end of more than 15 years of negotiations: Florida Gov. Charlie Crist and Seminole Tribal Chairman Mitchell Cypress have signed a tribal-state compact that would allow the tribe to operate Class III games and guarantee the state a massive cut of casino revenue.

The 25-year deal would require the tribe to pay a $50 million signing fee to the state up front—that is, assuming federal approval—and then a minimum of $100 million per year. As of the third year, the state would receive between 10 and 25 percent of the gaming revenue.

The Seminoles will be granted the exclusive authority to operate casino-style games, including slot machines, baccarat, and blackjack. The compact also provides for the forfeiture of the state’s share of tribal casino revenue if the state allows for the expansion of legalized gambling on non-tribal land other than existing pari-mutual facilities in Broward and Miami-Dade counties. This creates a clear disincentive for the statewide expansion of legalized gambling.

While a breakthrough, there still are political hurdles to clear, including federal approval and possible state legislative disapproval of the governor’s actions.

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