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Florida changing face of card gaming

Mike Ford
Posted 2/17/16

ORANGE PARK – In December, Governor Rick Scott signed a deal with the Seminole Tribe in South Florida that expands casinos in that part of the state. Meanwhile, state regulators have filed …

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Florida changing face of card gaming


Posted

ORANGE PARK – In December, Governor Rick Scott signed a deal with the Seminole Tribe in South Florida that expands casinos in that part of the state. Meanwhile, state regulators have filed complaints against seven pari-mutuel poker rooms, such as bestbet in Orange Park.

In casinos, gamblers bet against the house and in pari-mutuels, they bet against each other. In January, the Division of Pari-Mutuel Wagering, which also oversees Native American casinos, filed complaints alleging that seven pari-mutuels were holding games in which bets are made against the house, which are illegal in pari-mutuels.

In an email to Clay Today, bestbet President Jamie Shelton expressed confusion concerning the complaint because nothing had changed since the state approved the company’s card games.

“We did receive an Administrative Complaint. We don’t understand why the complaint was filed as the Division of Pari-Mutuel Wagering had previously reviewed the poker games at our facility before opening, approved our internal controls as to how the poker games are played and subsequently authorized the playing of the poker games in our facility, as well as 15 other facilities across the State. We will respond and defend our position through the appropriate legal process, Shelton wrote.

“No statutes related to pari-mutuel wagering have been changed since 2009. The statutes governing cardroom operations were the same when the Division of Pari Mutuel Wagering approved the new poker games – Three Card Poker, Two Card Poker, One Card Poker, Florida Hold’em and Pai Gow Poker.”

Sen. Rob Bradley (R-Fleming Island) said what is going on with poker rooms fits into a context that revolves around the Seminoles.

“It’s part of a larger discussion taking place in Tallahassee right now and it’s too early to tell what’s going to happen in this legislative session,” he said.

Bradley said pari-mutuels typically argue that they are at a disadvantage because the Seminoles have a stranglehold on casino gaming in the state. Through a complicated mix of state and federal laws, Native American tribes offer games against the house and no poker room can do the same.

“The compact has to do with the Seminole Tribe’s gaming in South Florida. Federal law holds that the Native American tribes can conduct whatever gaming is allowed elsewhere in the state and if they offer games not allowed elsewhere in the state, they are obligated to pay revenue sharing in exchange for exclusivity,” Bradley said.

The tribe has seven casinos, all of them in South Florida, and blackjack is among the offerings. The compact Scott signed on Dec. 7 gives the tribe exclusivity for that game and adds craps and roulette, also with exclusivity. None of these games are played in pari-mutuel poker rooms, so it’s unclear what connection there may be between the state’s new deal with the tribe and rules overseeing the tables at bestbet. However, Shelton indicated the state’s compact with the Seminoles puts bestbet in jeopardy.

“The compact already executed between the governor and the tribe takes away product from the pari Mutuels and by default gives them more exclusivity that they currently have under the existing compact, which by the way, has not expired,” Shelton wrote in an email.

Via email, Clay Today asked Shelton, through his public relations representative, to elaborate and Clay Today didn’t receive a response.

In a statement to Clay Today, Florida Department of Business and Professional Regulation Secretary Ken Lawson indicated the office found violations, but he didn’t offer any details.

“After reviewing operations and obtaining additional information at pari-mutuel facilities throughout the state, the Division of Pari-Mutuel Wagering discovered violations of Florida law resulting in administrative complaints. We will continue to administer the law and maintain our opposition to unauthorized activity conducted at any facility licensed by the state,” Lawson wrote in an email.

Clay Today received the complaints the Division of Pari-Mutual Gaming filed against the seven poker rooms. They use the same language, making the same allegations which they indicate occurred on the same day – Dec. 7, 2015.

The complaint the office filed against bestbet alleges the poker room conducted a banking game, a game bet against the house, on Dec. 7, 2015 – the day the governor signed the compact with the Seminole Tribe.

The complaint doesn’t specify what bestbet allegedly did, but alleges nine counts of “operating a banking game or a game not specifically authorized” on Dec. 7 at nine different tables. The complaint also alleges eight counts where it reads that bestbet “allowed the person seated in seat eight at the corner of table 78 to work in Respondant’s [bestbet’s] cardroom” and that “On Dec. 7, 2015, the person seated in seat eight at the corner table 78 did not have a valid occupational license.”

Bradley said that, in exchange for adding craps and roulette and having exclusivity over them and blackjack, the tribe will pay $2 billion more each year in revenue sharing. He said he sat down with the governor, representatives from the tribe and Rep. Jose Diaz (R-Miami) to negotiate the financial terms of the compact.

“It will go from $1 billion to $3 billion,” Bradley said. “It goes into the general fund and I’d like to see the additional money go toward education.”

Bradley opposes gaming expansion, especially in Northeast Florida and in Central Florida because, he said, “we have a family-friendly atmosphere and I don’t want to see that disturbed.” He also said he likes the idea of increasing revenue without raising taxes.The governor’s compact must be ratified by the Legislature. It is currently being debated in the Florida Senate Regulated Industries Committee, which is chaired by Bradley.