Wheel of Misfortune

Crist needs to find the stones to deal with the Seminoles

Over Rosh Hashanah dinner, Charlie Crist and Steve Geller prayed over a table spread with wine, bread, apples, and honey.

May the new year be a sweet year for us...

How very Crist-like. The Republican governor dining at a Democratic senator's house. The Christian celebrating a Jewish holiday. The St. Petersburg-based politician spending his time in politically unfriendly Broward County.

Jeb Bush wouldn't have been caught dead at Geller's house. Then again, Geller didn't recruit Bush into student government at Florida State University 30 years ago. He recruited Crist, a man with whom he's broken bread many times.

This time, though, the notoriously thin governor seemed especially hungry. Or perhaps he just has a yen for gefilte fish.

"The governor never eats more than three ounces of food," Geller says. "But he ate a lot this time. He left a message the next day saying he's not going to eat again [for] three days, which I believe, because I've never seen him eat that much."

Geller, however, was a lot more concerned about what Crist was swallowing at the negotiating table. The senator, who is tightly aligned with the gambling industry, is concerned that the governor is on course to destroy Broward County's four pari-mutuels, or "racinos."

I could follow Geller's diplomatic line, but I'm going to go ahead and say what he won't: It's time for the governor to show some balls in his dealings with the Seminole Tribe.

Right now, Crist is involved in high-stakes negotiations with the Seminoles to expand gambling at reservation casinos, including the Hard Rock in Hollywood.

The working draft of the compact will give the Indians a state monopoly on table games like blackjack and baccarat in its seven Florida casinos. And that will decimate the Broward racinos, which already pay an outrageous tax rate while the Seminoles skate.

I haven't agreed much with Geller in the past. I've slammed him for his coziness with the gambling industry. But on the Seminole compact, he's right on the money.

The governor needs to shed his nice-guy shtick and play a cutthroat game. He needs to call the tribe's bluff.

Before we get into why Crist should ace out the wealthy tribe, let's take a look at the action so far. The game began in 2004, when Broward voters approved Las Vegas-style slots for the four pari-mutuels. Federal law generally allows Indian tribes to offer all the games that are legal in the states in which they operate, so the Seminoles took steps to stock the new machines as well.

The law, however, requires that the tribe sign a compact with the governor to seal the deal. Jeb took a hard line against gambling; once he left office and Crist entered the game, the Seminoles raised the stakes.

They are demanding not only the Vegas-style slots but also the table games, which are currently illegal in the state. In return, the tribe is offering the state about $100 million a year from its seven casinos.

That may sound like a lot, but it's little more than an ante. Consider, for instance, that the three pari-mutuels currently offering slots in Broward together are coughing up about $110 million a year — without the table games.

On top of that, the pari-mutuels, which are part of Florida and can be regulated, are already being taxed into oblivion — at an effective 62 percent tax rate — so they can't really flourish.

With the deck already stacked, giving the Seminoles a further advantage is ludicrous.

Asked what would happen if the current compact were ratified, Dan Adkins, CEO of one of those pari-mutuels, told me, "I guarantee you we're all out of business."

Adkins, who runs Mardi Gras Gaming (formerly the Hollywood Dog Track), may be overstating things a bit, but the racinos would be hit hard. And no matter what you may think of gambling, destroying those venues would be bad business.

I've been skeptical about Broward's seemingly manifest gambling destiny in the past. But the people spoke in 2004. They want a gambling mecca here. And since taxpayers aren't going to get much more than squat from the Seminoles, you have to back the pari-mutuels in this race, especially if you live in racino-rich Broward.

If the pari-mutuels get the table games, they'll produce a hell of a lot more revenue than $100 million a year. Geller predicts hundreds of millions of dollars.

"What the Indians have on the table in exchange for what they want is nothing," Adkins says. "It's a mere pittance. Why talk about $100 million when you can package this thing with the pari-mutuels and really bring a windfall for the state?"

But this isn't all about money. It's just not fair — or American — to hand out monopolies. That's what Crist is doing with the proposed compact. Right now, though, he's facing a promise from House Speaker Marco Rubio to fight the addition of the table games. Carrying the anti­-gambling torch for Jeb, he's taken the right stance for the wrong reason.

That leaves Crist with only one good option: He needs to take the table games out of the deal with the Seminoles and negotiate a fair fee for allowing the slot machines only.

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  • simon says 09/27/2007 5:34:00 PM

    FINALLY,a columnist not OWNED by this Indian Conglamerate!!! Thank you for telling the facts! These indians arent poor,and if any of them are,they need to go check out the CHIEFS house!! LOL...If you want some fun reading,check out the current draft the governor is lookin at,its available onlie,somewhere. Some key things that make for interesting reading are sections part XII where it says if they make less than 1.35 billion,state gets nothing, and in another section it says 85% ANNUAL AVERAGE slot payout...basic math can be a hinderance...100% on saturday night,75% hold on monday morning...you get the picture...Oh, and one more section,under MISCELLANEOUS I think,it says that if a hurricane hits Florida,and like everyone other business in Florida will be interupted, well for them it means they dont have to pay what they agree to pay FLorida...LOL how nice for them. I guess in the next 20 years,they will own this state. If they get this compact that is.

  • DanO 09/26/2007 11:58:00 PM

    Wow, where to begin to point out the mis or disinformation in that piece. I'll skip over the nonsense about Crist and Geller's breaking bread. Let's keep this overriding concern in mind. "Federal law generally allows Indian tribes to offer all the games that are legal in the states in which they operate." OK, so it's agreed the Seminoles are entitled to have Class III slots and not pay a dime to Florida under Federal law. So, we're operating from the standpoint that the Seminoles have 7 casinos all over the state from which FL will get nothing. People in Tampa aren't going to come to Broward to play the slots. Nor will people in the Naples/Ft. Myers area. "...Broward racinos, which already pay an outrageous tax rate..." Compared to what? Other states have a license fee per slot machine that dwarfs what the state could be getting. In Connecticut the tribes pay 25 percent to the state. In Fiscal Year 2005-2006 Conn. collected more than $425 million from the two casinos there. The potential is much greater in FL for revenue with the populations and tourists in just Hollywood and Tampa. The 100 million figure in the compact draft is a minimum. "They are demanding not only the Vegas-style slots but also the table games, which are currently illegal in the state." Federal law requires them to get some kind of exclusivity on something in order to have a compact. Since the state can't give them exclusivity on slots, table games are all that is left. So the parimutuals would be put out of business. Boo hoo. They should have been allowed to go out of business. It was totally wrong headed to give them the goose that lays the golden egg in this amendment. The amendment should have legalized slots and let the state put it out to bid. Who cares if nobody wants to go watch dog or horse races anymore? (That's a rhetorical question.) Nobody is bailing out the typewriter companies. "They want a gambling mecca here." Please. The vote was razor thin and only for slots. Not a "gambline mecca" in Broward. If people in Tampa knew they were voting to give the Seminoles slots I bet the vote would have gone the other way. "It's just not fair � or American � to hand out monopolies." What do you think has been given to the parimutuals? Can MGM Mirage come to FL and open a slots parlor? No. Can anyone except the Sarasota Kennel Club offer high states poker in Sarasota? No. It is a monopoly for one undeserving industry that even continues to squeeze the greyhound owners and now even has got the state to allow them to offer high states poker with no racing. So, tell me again why we gave the parimutuals this gift if they're not going to maintain the business that everyone was crying would disappear? "He needs to take the table games out of the deal with the Seminoles and negotiate a fair fee for allowing the slot machines only." And exactly what would the Indians be getting that they're not already entitled to in return? You want to ignore the reality you clearly stated above. You want your cake and want to eat it, too. "It failed to mention that a federal appeals court ruled in favor of the State of Texas in a similar case last month." You fail to mention that ruling isn't binding in this district and the courts in THIS district have already ruled that Florida must negotiate a compact with the tribe. Once again, ignoring reality. "...the fear that taxpayers will lose out on all Seminole revenue is not ungrounded..." is the reason for the negotiations! C'mon, give the fallacious arguments a rest already. "Let's figure out what will generate the most tax dollars and go forward." At least Charlie Crist knows the facts and the issues. "The way to a sweet new year will come by rolling the dice." How sweet will it be when the dice come up craps? Why gamble with a possible 1/2 billion dollars a year the state could receive from the Seminoles?

 

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