Seminoles Request U.S. Gov’t Decide Slot Machine Issue
The Seminole Indians of Florida, fresh off their historic purchase of Hard Rock International, are camping up their efforts to operate true Las-Vegas style slot machines at the casinos they own throughout the state. Right now the Tribe operates video lottery terminals that are based on a bingo formula – where patrons compete against each other -- but play out individual game results in a traditional slot machine format.
The Seminoles are looking to get these particular style machines (Class III in industry parlance) in their casinos because other competing gaming companies will soon be opening casinos throughout Broward County. When complete, the four new casinos will operate as many as 6,000 Class III slot machines.
Right now the tribe operates two incredibly successful casino resorts under the Hard Rock moniker in both Hollywood (near Miami and Ft. Lauderdale) and Tampa.
With a new governor in office, Charlie Christ, the stage is set for a new round of negotiations. Talks had stalled under the previous administration when Governor Jeb Bush refused to deal with the issue in the waning days of his administration. Bush is also known to be anti-gambling and frequently used tactics throughout his administration to delay making a definitive decision on this issue.
The Florida government had had some leverage since they currently receive very little cash in return for allowing the Tribe to operate its gaming facilities. This past fall, popular wisdom held the state would negotiate a higher cut of the Seminole’s revenue in exchange for allowing the Class III machines. The state will clean up as its takes a huge chunk of slot machine revenue from the Broward County casino operators.
Now it looks as if the Seminole’s patience has run out as concerns over a decrease in its financial livelihood are at stake.
On January 8, the Seminoles filed a motion in federal court accusing the Florida legislature of utilizing delay tactics and are looking to circumvent the negotiation process and requested the U.S. Department of Interior immediately approve the slot machines. If the Federal Government were to make the decision, Florida runs the risk of losing its ability to negotiate any cut of the profits.
''There's no justification in any delay,'' said the tribe's attorney, Barry Richard to the Miami Herald.
The governor responded by sending a letter to federal authorities seeking a delay in any decision regarding this matter.
''I would appreciate the opportunity to enter into discussions with the Tribe about this ongoing issue,'' Christ wrote in his letter to U.S. Secretary of the Interior Dick Kempthorne. “I therefore request that the Department not take any action immediately in order to give the State an opportunity to enter into a process with the Tribe.''
Some experts in this field have said that Indian gaming facilities already have the legal right to operate any casino game already permitted by state law. Since voters approved Class III Las Vegas style slot machines in November 2004, the Seminoles should also have the opportunity to run the same kind of games. They also believe the Seminoles will eventually get permission to have the gaming machines.
Last month, the Tribe bought Hard Rock International and other related entities from The Rank Group Plc for approximately $965 million. The deal, which is expected to close in March, will give the Seminoles ownership of 68 company-owned Hard Rock Cafe Restaurants and retail stores, including 44 in the United States, three in Canada, 17 throughout Europe, three in Australia and one in Puerto Rico.
Additionally, the Tribe will control licensing or franchise agreements for another 56 restaurants and five hotels with locations in places such as Orlando and Chicago, plus Hard Rock Live performance venues. Hard Rock Cafe International is headquartered in Orlando.
Hard Rock has 52 million customers and sales of $1.7 billion annually.
The Tribe opened up its first bingo hall in 1979 and is widely credited with kick-starting the Indian Gaming movement.
In addition to its two Seminole Hard Rock Hotels & Casinos, the Seminole Tribe owns and operates five more non-Hard Rock Florida casinos in Coconut Creek and Hollywood on the Southeast coast, in Immokalee near Naples, on the Brighton Reservation north of Lake Okeechobee and on the Big Cypress Reservation south of Lake Okeechobee. The Seminole Tribe has long been recognized for innovation in its gaming and other businesses.
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