Looks like we've got a[nother] compact in Florida!  But is it a good one?

Any compact in Florida is a good compact.  At least, that's our thinking as we near 20 years of controversy over tribal gaming in the state.  This latest compact, borne out of the necessity of the Florida Supreme Court's invalidation of the existing compact, seems to strike a balance between a benefit to the state in the form of revenue sharing, and a benefit to the tribe in the form of exclusive gaming rights throughout the state.  It's not all wrapped up in a ribbon, though -- it still needs to be approved by the state legislature, but insiders are optimistic.

In Florida, the issue is revenue sharing.  The revenue sharing in the new compact is significant -- as much as $1.5 billion over five years.  As the deal is structured, the state will receive $150 million in Year 1, another $150 million in Year 2, $233 million in Year 3, another $233 million in Year 4, and $234 million in Year 5.  Plus, in the last three years, the state also will get 10% of net revenue, projected to total the billion and a half dollars.  That's a lot of revenue shared with the state. 

On the tribe's side is the state's promise of exclusive gaming rights.  And the exclusivity for the tribe, especially in Florida's lucrative market, is significant -- the compact gives the tribe the exclusive rights to operate table games in South Florida and slot machines in the rest of the state. 

Ultimately, though, the Secretary of the Interior will have to weigh in on whether the trade off is fair, or if it crosses the line into a "tax" on tribal gaming.  Is the limited exclusivity over table games and slot machines worth $1.5 billion?  We think this will be a close call, given the amount of revenue to the state, and the less-than-blanket exclusivity granted to the tribe.

Read more in the Miami Herald and Tampa Tribune

Kathryn's quoted in Gambling Compliance's analysis of the compact