Casino Industry News and Analysis

Connecticut Update: Smoking Issue

Like Florida, there's some conflict between the state Attorney General and tribal casinos in Connecticut.  The AG (Richard Blumenthal) isn't happy with an apparent deal struck between the governor's office (Jodi Rell), Mohegan Sun and Foxwoods [?] to install high-tech ventilation systems for second-hand smoke.  The deal allows the casinos to continue their exemptions from the state's existing smoking ban.

The issue is very different, but the dynamics the same in the nutmeg and sunshine states.  In both places, the tribes directly negotiate with the governor whilst avoiding the legislature and arousing the ire of the attorney general.  I'm offering no value judgment on this system.  I just find it an interesting aspect of the tribal gaming system that has evolved in the US since 1988. 

1st Update: From a billboard I viewed Sunday on the NJ Turnpike in north Jersey: "Foxwoods: A Smoking Hot Casino" ...and the beat goes on....

Florida Table Games, part 3

As noted here earlier, the Florida table games situation is very interesting, from various points of view.  At present, the Seminoles continue to operate their table games at Hard Rock with a tribal-state compact that's been invalidated by the Florida Supreme Court.  However, a federal district court refused to issue an injunction to stop the table games last July, and so it goes.

Now, the Miami Herald reports that the legislature will re-visit the compact via a new sub-committee headed up by a "gambling opponent."  The idea is for the full House to either sanction the existing agreement or come up with something entirely new.  Apparently, the issues boil down to money & monopoly, with some anti-gaming moralism thrown in the mix.  The current agreement gives the state a set amount of $375 million over the next three years and $100 million per year for the next 25 years, as long as the state bars its various racinos and slots-only casinos from offering table games. 

This reminds me a little of the situation in Connecticut in the early 1990s when then-governor Lowell Weicker negotiated a similarly-exclusive deal with the Pequots of Foxwoods fame.  The exclusive deal Connecticut struck with the Pequots derailed the Steve Wynn-led Mirage's plans to develop in the nutmeg state -- a key decision that contributed to Wynn's decision to shift his focus back towards Atlantic City.  This eventually led to Borgata's development.   But the Pequots' Connecticut monopoly only lasted a few years until the Mohegans and partner Sun International struck a deal to develop Mohegan Sun.  

At this point, the Florida legislature may simply approve the 2007 compact, allowing the Seminoles exclusivity and the state's guaranteed revenue (see above).  But, why limit the potential for gaming around the state?  There's still a big legal question here.  According to the Herald, one key legislator has already declared that ''Everything is back on the table" and he will look for fairness to the state's parimutuel racing & slots operations. 

So, despite the new legislative plan, the picture is still not clear for Florida.  While it is certainly in the tribe's interest (from a PR perspective at a minimum) to work with the legislature on a new compact, there's a strong financial incentive to protect its interests under the current system.  And a gaming monopoly in such a lucrative market is a big interest.  At any rate, a complex scenario with economic, political and (possibly) legal implications will play out over the next few months in the sunshine state. 

I'll be in Disney World for few days in January with my family.  So far there's been no talk of gaming in the Magic Kingdom, at least that I'm aware of....