Compacts | Legislation

Draft report highlights benefits of compact for Seminole Tribe

Wednesday, October 2, 2013

A draft of the Florida Gaming Study indicates how a Class III gaming compact with the Seminole Tribe offers benefits to the state.

The compact expires in August 2015. Renewing the agreement, while maintaining limits on existing non-Indian gaming facilities, would result in growth in the tribal and non-tribal sectors, the report said.

"[O]overall GGR at Florida’s casinos could increase by 8.7 percent to 11 percent, to $2.7 billion in GGR annually," the report said, referring to gross gaming revenue in both sectors.

The compact includes revenue sharing provisions. So any increases in the tribe's business benefits the state, the report said.

"As such, this scenario would provide the Seminole Tribe with greater, potential economic benefit, which could in-turn yield greater revenue sharing, all other things being equal," the report said.

"The State of Florida may want to consider whether a more substantial revenue-sharing agreement is warranted for this privilege," it continued.

On the other hand, lifting limits on existing non-Indian gaming facilities will result in a reduction of the tribe's contributions to the state, the report noted. This would only lead to "incremental increases" in revenues for the state and "incremental jobs and license fees," according to the draft.

Authorizing new non-Indian casinos would definitely lead to more jobs and revenues from the state, the report said. But all revenue sharing with the tribe would end, costing the state as much as $120 million a year, according to the figures presented in one scenario.

The draft is due to be finalized on November 1. Lawmakers granted an extension to review the economic scenarios presented in the report.

Get the Story:
Report: Only minor economic lift from more gambling in Florida (The Tampa Tribune 10/2)