Paul Seago: Seminole Tribe prevails in gaming dispute in Florida

This case involves the 2010 compact between the tribe and the state. As part of that agreement, the Seminoles were granted exclusive rights to offer banked card games for a five-year period, in exchange for $1 billion to the state. The deal contained penalties if the state violated the tribe’s exclusivity, giving the public assurance that the compact would actually halt further expansion of gambling.

In 2011, Florida regulators allowed pari-mutuels to offer so-called “designated-player’’ card games, a new game that – unlike traditional poker – features players trying to get a better hand than a designated player, who then pays out winners and collects from losers.

While these games are certainly lucrative for the pari-mutuel owners, the state realizes little revenue from their play versus what is at risk by violating the compact. The FY 2014-2015 annual report from the Department of Pari-Mutuel Wagering shows that combined revenue to the state from all licensed card rooms was $14.3 million. In contrast, the minimum payment from the tribe to the state that year was $234 million.

Why regulators would take this risk is baffling. Here is what is more baffling – these games appear to violate state law.