Due to inability to meet the legislative deadline, the largest deal in the industry of gambling could not take place. The Seminole Indian tribe was willing to pay the amount of $2 billion to the State authorities of Florida in order to obtain a license to provide table games such as craps and roulette at its casinos around the state.
The deal was to be sealed this spring. However, Governor Rick Scott could not manage to finalize the negotiations before the legislative deadline. The media agency Associated Press stated that up until now, there has never been a deal of such magnitude.
The Seminole tribe had a similar, successful agreement with the former Governor – Charlie Crist, when in 2010 they signed a contract allowing them to offer slot machines, baccarat and blackjack games.
The tribe currently has seven casinos and holds the monopoly for slot games in the State. In return for the license, the tribe assured the state of providing over $1 billion in revenue for the next 5 years.
As the casinos have reported positive revenues over the past few years, there are many stakeholders who have expressed their interest in having a ‘piece of the pie’ which is now owned solely by the tribe’s organisation.
As the expiry date of the last license nears (July 2015), stakeholders began to require of the state authorities to consider major changes in its gambling regulations such as a casino resort owned by non-tribal board. Such a casino is offered to be in the Miami area.
Genting and Las Vegas Sands, major gambling operators in the U.S., have shown eager interest in attaining the right to set a casino in the Florida counties of Broward and Miami-Dade. On the other hand, companies of the tourism sector as well as social conservatives have made their position clear – they do not wish gambling to be further developed in the state.
Another turning point of the state’s gambling situation may be the November elections, where Charlie Crist is assumed to run for the Governor position again. The $2 billion deal that Governor Scott was looking to complete was looking more profitable than the one of Crist, with some documents reporting an estimated $15 billion in revenue for the next thirty years.
Other important clauses of the contract were an agreement with the Seminoles to establish a casino resort in Fort Pierce. Also, the deal would have made the Seminole tribe a monopoly operator of baccarat and craps table games for the next seven years.
Despite the fact that Scott has received political help as well as donations from Sands Corp. since his meeting with Sands’ owner Sheldon Adelson soon after the 2010 elections, it seems he remained a supporter of the deal with the Seminole tribe.
A spokesperson of the Governor explained that the negotiations for the deal will be renewed after the November elections no matter who wins it.
