Florida gambling bills with billions at stake are likely to come down to session wire
The Florida House stripped the Senate’s gambling bill and passed its own Wednesday, signaling the two chambers will likely have to negotiate a compromise during the session's final weeks.
The Senate bill’s sponsor, Sen. Bill Galvano, said “timing is not yet determined” for negotiations. But if they can reach an agreement, the state stands to gain at least $2 billion in additional money from the Seminole Tribe over the next seven years by renegotiating a deal reached in 2010. The state is seeking a guaranteed $3 billion from the tribe for the time frame, about $1 billion of which it would receive regardless, according to revenue forecasts from the Legislature's Office of Economic and Demographic Research.
This is the second consecutive session that lawmakers have tried to reconcile views on gambling to approve a deal that would hold up in federal court. Conservatives, who dominate the Florida House, want to restrict gambling, while the moderates, who dominate the Florida Senate, want to expand it.
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The tribe wants more control over the industry as it gives the state millions each year. Other special interests like private casinos and animal rights groups fall into House and Senate camps, pressuring the respective chamber leaders to dig their heels in.
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“I stand firm in the Senate position and will not negotiate against myself,” said Galvano, R-Bradenton, chair of the Senate’s higher education committee, in response to what areas offer the most possibility for agreement.
Document: Bill Galvano's letter to Chairman Osceola
Galvano has introduced sweeping legislation, SB8, that would essentially turn Florida from a state that theoretically bans gambling into one that embraces it. His bill authorizes slot machines in any county where voters pass a referendum, regulates fantasy sports, and allows race tracks and jai alai frontons to provide games outside of live events.
“Areas that don’t expand gaming have the most potential for negotiations from our side,” said Rep. Mike La Rosa, R-St. Cloud, the House sponsor for the gambling bill, H 7037, who chairs the tourism and gaming House subcommittee.
It’s a “very good assumption” that granting slot machines to counties that have approved them by referendum is a no-go for the House, La Rosa said.
“That (position) will most likely be a point of contention that will impact the overall negotiations,” Galvano said in response.
Document: Chairman Osceola's letter to Rick Scott and Joe Negron
Both La Rosa and Galvano are using their bills as leverage to close the loop on a series of lawsuits that are popping up during a time of profitable ambiguity.
One of the state’s lawsuits involves a small North Florida racetrack that wants slot machines, arguing it has constitutional authority since the county voted to allow it by referendum. Eight counties have voted to allow slot parlors since they were granted in Broward and Miami-Dade before the state’s original 2010 agreement with the tribe. These counties include Brevard, Duval, Gadsden, Hamilton, Lee, Palm Beach, St. Lucie and Washington.
Even if the lawmakers work out their disagreements, they still must negotiate with the tribe, which recently sent a letter to both chambers and the governor’s office outlining why both bills wouldn’t hold up under the federal Indian Gaming Regulatory Act, because they each seek too much money without giving the tribe enough in return.
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The total $3 billion the House and Senate want in guaranteed revenue from the tribe is the same financial agreement the governor reached with the tribe in 2015, which the Legislature failed to ratify during the following session. But, key to that agreement was that the Seminoles would be able to offer live table games such as craps and roulette. The House bill wants the increased revenue stream but does not want to grant the tribe the ability to offer these currently restricted games. The Senate bill offers them this ability but expands gambling to private industries across the state in ways the Supreme Court recently ruled violate the state’s current agreement with the tribe.
The state has appealed this ruling but has also requested the courts hold off on pursuing the matter until after the legislative session is over.