Hollywood ‘hits the jackpot’ in new gaming agreement with Seminoles

Last Updated on Thursday, 01 July 2010 10:04 Thursday, 01 July 2010 10:04

Written by Caron Conway

Agaming agreement with the Seminole Tribe of Florida passed its final hurdle late last month, paving the way for expanded gaming offerings that are expected to add at least $1 million a year to Hollywood’s coffers and stimulate the local economy.

Final approval of the Seminole Gaming Compact by the U.S. Department of the Interior came after more than 20 years of negotiations between the state and the Seminole Tribe, which owns seven casinos on tribal land in Broward County, Tampa and Immokalee.

The agreement gives the Seminole Tribe exclusive rights to operate blackjack, baccarat and chemin de fer card games at five of its casinos, including the two located in Hollywood, for five years, as well as the rights to maintain Las Vegas-style slot machines at all Seminole casinos in Florida for 20 years. The agreement bars roulette and craps at the tribe’s casinos.

In exchange for the exclusive ability to offer house-banked table games in South Florida and slot machines outside of South Florida, the tribe agreed to guarantee the state $1.2 billion in revenues over the next five years and share its slot machine revenues for 20 years. Because the tribe is a sovereign nation, it is not subject to state or federal laws and can only be obligated to pay revenues to the state if it receives something in return.

Broward County, Hollywood and six other municipalities that are home to or near Seminole casinos (Coconut Creek, Coral Springs, Davie, Dania Beach, Margate and Parkland) will benefit financially through what is known as the local government share, which amounts to 3 percent of the Seminole revenues paid to the state, based on the net win per casino. Hollywood’s portion is 55 percent of the local government share derived from Seminole Hard Rock Hotel & Casino and from Seminole Casino Hollywood, both located on State Road 7 north of Stirling Road. Hollywood already receives $300,000 a year to provide fire protection to the tribal land in the city.

“I think this is just the beginning, the tip of the iceberg,” said leading gaming authority Alan Koslow, a partner with the law firm of Becker & Poliakoff, P.A., and president of the Greater Hollywood Chamber of Commerce. “The gaming business is good for almost every other business you can name, including the municipalities. And the amount Hollywood is going to get is going to continue to increase.”

Approval of the Seminole Gaming Compact followed nearly three years of negotiations with the tribe and two failed previous attempts at an agreement. A deal Gov. Charlie Crist signed with tribal leaders in 2007 was struck down by the Florida Supreme Court, which found Crist had overstepped his authority by not involving the Legislature in the process.

But unlike the two earlier agreements, the tribe’s revenue-sharing payments under the newly approved compact have not been earmarked for education but instead will be deposited into the state’s General Revenue Fund.

During a ceremonial signing with the Seminole Tribe in May at Seminole Casino Hollywood, Crist urged the Legislature to use the new revenues to fund education.

He called the Seminole Gaming Compact “the last step in a historic effort that benefits both the Seminole Tribe and the entire state of Florida.”

“The signed compact creates many opportunities, like the opportunity for new jobs, the opportunity to improve schools and the opportunity for a stable financial future,” said Mitchell Cypress, chairman of the Seminole Tribe of Florida.

The Seminole Gaming Compact is part of new legislation that also benefits South Florida’s pari-mutuel facilities with a reduced tax rate from 50 percent to 35 percent of their slot machine revenues, and authorizes no-limit poker games and expanded poker room hours.

With a lower tax rate, racinos will be able to expand, which would not only help make them more competitive with the Seminole facilities but would also spur local job growth, economic development and tourism.

Koslow predicted that in five years every gaming facility in South Florida will be turned into a “destination resort” with expanded entertainment offerings and hotels.

“Every one of these locations has the land for it and every one will have the revenue for it,” he said.
Koslow called the new gaming legislation “a potential jackpot” for the gaming facilities, the municipalities and the county.

“They’re all going to be winners,” he said.

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