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Court tosses Crist's casino deal

By Alex Leary, Asjylyn Loder and Steve Bousquet, Times Staff Writers
In print: Friday, July 4, 2008


Georgette Palmer of Palm City plays a $10 slot machine earlier this year at Seminole Hard Rock Casino and Hotel in Hollywood.
Georgette Palmer of Palm City plays a $10 slot machine earlier this year at Seminole Hard Rock Casino and Hotel in Hollywood.
[WILLIE J. ALLEN JR. | Times]
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TALLAHASSEE — The Florida Supreme Court has struck down Gov. Charlie Crist's casino gambling compact with the Seminole Tribe, ruling he lacked authority to unilaterally forge a deal.

The decision Thursday throws into doubt hundreds of millions in revenue for the state. But for the time being, the gambling will continue at seven casinos, including Seminole Hard Rock Hotel & Casinos in Tampa.

The unanimous ruling is a major defeat for Crist, who did not comment. He pushed ahead with negotiations last fall even as critics warned he needed legislative approval to grant the Seminoles the right to offer card games that are otherwise illegal in Florida.

"The governor has no authority to change or amend state law. Such power falls exclusively to the Legislature," the court ruled.

House Speaker Marco Rubio, the Miami Republican and gambling opponent who filed the suit in November, said, "The court's decision is a victory for our constitutional system of checks and balances."

Much was still unknown Thursday. Crist has 15 days to ask for a rehearing.

The tribe has already paid $60.4-million to the state as part of its $100-million obligation this year. The money has not been spent.

The compact allowed the Seminoles to offer Vegas-style slots previously available only in South Florida and so-called Class 3 card games such as blackjack and baccarat that are illegal under state law.

Lawmakers could attempt to take up negotiations. Or Crist could offer the 25-year compact to the Legislature for approval. But it wasn't clear if he would do that.

"We are reviewing the opinion," said Crist's chief of staff, Eric Eikenberg.

Barry Richard, an attorney for the Seminole Tribe, said games will stay in the casino for now.

"The suit challenged the power of the governor to enter into a compact with the tribe without the approval or ratification of the Legislature," Richard said. "It was not about whether or not the games could proceed."

The U.S. Department of Interior, which already signed off on the deal, had no immediate reaction, saying it needed to study the 46-page ruling.

Slot machines have been installed at six of the tribe's seven casinos throughout the state, said Gary Bitner, spokesman for the Seminole Tribe.

The only casino that doesn't have them yet is the Seminole Casino Big Cypress south of Clewiston. The tribe had ordered 15,000 slot machines, and the bulk have been installed.

Table games have also been installed at Seminole Hard Rock in Hollywood, Bitner said. The casino has 71 tables featuring blackjack, pai gow, baccarat, mini baccarat, three-card poker and Let It Ride.

The table games drew 40,000 players the week after their installation on June 22, Bitner said.

Seminole Hard Rock in Tampa was slated to receive table games by the end of the year.

Crist's former chief of staff, George LeMieux, who was the state's lead negotiator on the compact, said that while he respected the court's decision, he disagrees with it.

LeMieux placed the blame squarely on the Legislature for refusing to pass a law ratifying the deal.

"It's easy to be a critic. It's easy to file lawsuits," LeMieux said. "But governors have to act, and this governor was in a position where they (the federal government) told him he had to act or they would give slot machines to the Seminoles and the state would receive nothing. We're now in a position where that might actually happen."

Spokesmen for horse and dog tracks, who face a competitive disadvantage against slots, hailed the court ruling.

"I think it's the right decision," said Brian Ballard, a lobbyist for a dog track, Palm Beach Kennel Club, and a close Crist political ally.

But he cautioned that it's foolhardy for the Seminole Tribe to think it might run slot machines free of government regulation.

"If the Indians think they can have untaxed slots and not suffer the consequences of an irate Legislature, they're not as smart as they think they are," Ballard said.

Rubio said he looked forward to "an open and deliberative" negotiations.

• • •

When Crist signed off on the deal in November, he heralded it as a "very historic day for Florida" and said the money should be used mostly for education.

The state was guaranteed $100-million in the first year, $125-million in the second, $150-million in the third year and then up to 25 percent of the take annually.

Crist denied he was breaking a campaign pledge to oppose the expansion of gambling and dismissed criticism the Legislature needed approval. "I don't think a vigorous debate is necessary," he said. "If people don't like gambling, they shouldn't go."

In the end, the court sided against him. "We hold the governor lacked authority to bind the state to a compact that violates Florida law," the ruling states.

Reaction was mixed at the Hard Rock in Tampa, where signs directing customers to the Vegas-style slots are abundant in the cool blue glow of the casino.

Tim O'Rear, a 49-year-old Tampa man who used to live in Las Vegas, said the decision could hurt business.

But Denise Lucas and Marcey Lucas said playing slots is "just something to do." The two are visiting from Georgia.

"We ain't in Vegas," said Marcey, 18, "so it's no big thing."

Times staff writer Casey Cora contributed to this report.


What's next?

A lot of questions are unanswered. The governor's office, the Seminole Tribe and legislative leaders all said they've made no decisions on how to proceed. Gov. Charlie Crist has 15 days to ask the state Supreme Court for a rehearing. He can also appeal to the U.S. Supreme Court. It's also possible the Seminoles could seek a federal court opinion or that the U.S. Department of Interior's Bureau of Indian Affairs gets involved. The Legislature may also move to launch negotiations of its own with the tribe.


[Last modified: Jul 09, 2008 04:06 PM]



Comments on this article
by LET TRUMP IN ! Jul 6, 2008 4:24 PM
I say instead of stopping the gaming we should allow gambling state wide and let our state reap the benefits. I do not agree with the Seminoles getting exclusive rights to class III games. It is an exact monopoly. That is not legal in any state.
by John Jul 6, 2008 3:57 PM
If I am not mistaken a very high profile real estate tycoon owns an awful lot of property around Tampa. I wonder what he will use it for? Time for some competition.
by jebdidit Jul 6, 2008 3:51 PM
Jeb is to blame. He had a chance to cut a deal several years ago and refused. The tribe was willing to pay the state and DIDN'T ask for exclusive rights. Crist got stuck with a lose/lose choice. The tribe would only pay if granted exclusive rights.
by Aquaserpent Jul 6, 2008 3:28 PM
For a lawyer his understanding of the law is terrable.
by Marc Jul 5, 2008 10:42 PM
When there is a business where MAJOR money can be made, there are old men in suits, sitting behind oak desks, figuring out how to stop it, or get their share.
by Al Jul 5, 2008 10:42 PM
Leave it alone, state needs the money and now people can stay at home and gamble instead of going to other states with their money.Is't this Rubio's last year so he wants to leave the state bankruped.
by Sarah Jul 5, 2008 10:41 PM
Sorry Mr. Rubio but you screwed the pooch on this one. Floridians lose again. Why didn't you fight harder for your property tax proposal? We'd certainly be better off than we are with Amendment 1.
by Jerry Jul 5, 2008 10:41 PM
One final comment: Bye, Bye Marco Rubio because you sure don't have Florida in your best interests.
by Jerry Jul 5, 2008 10:41 PM
Here is my 2 cents. The governor was trying to help out the financial state of Florida. The machines were going to be put into place any way because the Indians come under Federal law. It didn't cost Floridians anything to get this extra money.
by Sam Jul 5, 2008 10:41 PM
If ever a state needed money, it is Florida and gambling needs to be legal and taxed. We would not have a insurance problem and Rubio could move to Texas where they might like him.
by Valerie Jul 5, 2008 10:41 PM
I have lived in New Jersey for the past 5 years now but before relocating to Jersey I lived in Tampa Florida. I think allowing table games into Florida casino's was one of the best decisions Florida has come up with yet. Keep THE GAMES or LOSE MONEY!
by aj Jul 5, 2008 10:41 PM
Where did the Gods say that indian tribes have the right to have casinos and no taxes and no one else? Put some slots in Derby Lane and watch it come back to life! It's recreation for most and attracts tourists and creats jobs.
by JP Jul 5, 2008 10:41 PM
Read "Native American gambling enterprises" in Wikipedia, then take a look at the law. Nowhere does it say that the state has to grant permission, or that they are entitled to a piece of the Indians gaming pie.
by LBM Jul 5, 2008 12:38 AM
I THINK WE SHOULD HAVE GAMING. WITH GAS AND AIRFARES SO HIGH YOU CAN NOT AFORD TO FLY. FLORIDA DESIRVES ABREAK AND GET WITH THE TIMES AND GET SOME COMPITION GOING. SEMINOLES ARE TAKING ADVANTAGE OF HAVING NO COMPITION.
by Bill Jul 5, 2008 12:37 AM
I think House Speaker Marco Rubio should stop playing politics, help and work with Governor Crist and aid the people of Florida.
by ME Jul 4, 2008 6:56 PM
It's high time we forget about the tribe's "rights" to casino gambling and legalize it throughout the sate, and let US reap the rewards. Then we dont need to worry one bit about how much we can get from the Seminoles, and it will give them competion
by Ima Jul 4, 2008 6:56 PM
What's the big deal about executive authority? It sure wasn't an issue with Rubio's pal Jebby and the Bullet Train!
by Bill Jul 4, 2008 5:03 PM
Politicians are realizing how much money the tribe is getting and want its pound of flesh. Heck, we haven't broken a treaty in decades, it's way over due. We haven't honored a treaty yet, why start now?
by ra Jul 4, 2008 5:02 PM
Looks like the FL legislature is taking it's que from the federal one by doing nothing, wasting time and our money.
by Joe Jul 4, 2008 1:45 PM
idiots. now the tribe will go to the feds and fight it and win just like all of the other tribes have done in the country. then they will have full gambling and no taxation. the taxpayers of florida have lost out on a great deal. rubio is a fool.
by Babs Jul 4, 2008 12:24 PM
Florida is an economic disaster and the pious legislators throw away millions--way to go!! Time to show Rubio the door and elect someone intelligent!
by Michael Jul 4, 2008 12:04 PM
I can't quite figure out why it was such a problem for them to get the machines in the first place. Why does it matter if they are illegal in Florida - this is on the reservation which is tribe run, not Florida run.
by NoMonopoly Jul 4, 2008 12:04 PM
The Seminole machines have low payouts because they have no competition. It is obvious gambling is here to stay. Either open it up to competition, or legislate odds to be equal to the best in Vegas so players aren't ripped off.
by Jack Jul 4, 2008 12:00 PM
The court throws out a deal that would make the state millions of dollars. The Seminole Indians get to continue operating their casinos as usual. The State of Florida looses, and the Seminoles win. Great plan Rubio...NOT.
by Kyle Jul 4, 2008 11:56 AM
A governor who thinks he doesn't have to follow the same rules as everyone else? Sounds like a Vice President candidate to me.
by Susan Jul 4, 2008 11:53 AM
I think the governor acted in Florida's best interests; I am not really a gambler, but many enjoy playing. Do not force your beliefs onto others; stay away and don't play.
by Gary Jul 4, 2008 11:52 AM
If this doesn't go though I think the people should sue the legislators!
by samantha Jul 4, 2008 11:49 AM
I hope marco has deep pockets to suplement the states revenue from the casinos,as the tax payers are not going to suplement this loss. Be a man if you can and admit you screwed up with your law suit.
by Aaron Jul 4, 2008 11:46 AM
The State of Florida needs to lift these bans on casinos, and maybe our states money problems will go away a little. The noton that crime will rise is stupid, because crime is already high in FL. Lets stop with the backwwod way of thinking.
by Dan Jul 4, 2008 11:44 AM
Let's thank Rubio. He saved us from ourselves, he knows what's best. Let's all stop the gambling, drinking, smoking and all go to church with Rubio. We are just mindless children who need leaders to make all decisions for us. Here comes more taxes!
by C Jul 4, 2008 11:39 AM
Ok let me get this straight. stop the casino deal and loose 100 million then approve the power ball lottery. I dont hear anybody saying that the power ball game is gona cause child abuse and other things that come with gambling. This state is screwed
by Stephen Jul 4, 2008 11:31 AM
Geez sounds like Mr. Rubio did'nt like someone steping over his head and not asking his permission more that anything. I have not heard anyone complain about this free money the state is getting, when we are hurting to find money to use. WHO CARES!!!
by domimick Jul 4, 2008 11:29 AM
Tampa casinos pay out of there slot machines should have been investagated during this pact with the govenor.I think that at least 80% of the money take should go back to the players.Talking to people I don't think 40% goes back to the players
by tim Jul 4, 2008 11:27 AM
Crist needs to grow some backbone and take on Rubio. The Gov. should call a special session of the legislature and beat Rubio on this one. And Rubio needs to show us where he can come up with $150 mil for education.
by bill Jul 4, 2008 11:19 AM
What is the big deal about gambling? It has afforded Las Vagas residents to not have property taxes and a booming economy. Crime is everywhere and with anything there will be a few who abuse but look at all the money the citys get. And tourists come.
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