Florida Allocates Seminole Casino Money to Environmental Management Program

Florida provides funding from Seminole casino for environmental management plan

Florida Governor Ron DeSantis signed a law Thursday requiring most of the money the state receives from its Class III gaming contract with the Seminole Tribe to be used on environmental initiatives .

DeSantis and the powerful tribe agreed to new contract terms in 2021 that expanded the scope of games allowed among the Seminoles to include retail and in-person sports betting, as well as roulette and craps games at brick-and-mortar tribal casinos.

In return for the Sunshine State's sports betting monopoly and additional table games, the tribe agreed to pay the state $6 billion over the life of the compact, which runs through 2030. Funds from Seminole and Hard Rock Casino were not allocated specifically until DeSantis signed Senate Bill 1638 on Thursday.

The bill, titled "Environmental Resource Management Funding," requires the majority of compact revenues to be used to support water quality improvement programs, environmental infrastructure, and ongoing conservation land acquisition and management.

SB 1638 allocates $150 million for necessary repairs and upgrades to water management systems in Central and South Florida.

I am proud to contribute to our record investment in conservation.pic.twitter.com/9TACmmg8om

— Ron DeSantis (@GovRonDeSantis) 4. April 2024

Fund inflow

HB 1638 officially takes effect Thursday after DeSantis also signed companion legislation, Senate Bill 7080. These provisions establish the Indian Gaming Revenue Settlement Trust Fund.

Florida’s Seminole Treaty funds were initially allocated to the trust. The Florida Department of Financial Services will manage the account.

“Florida’s greatest asset is its natural resources,” DeSantis said. “This revenue stream will further strengthen our efforts to conserve natural resources, protect waterways and make our ecological infrastructure more resilient.”

The Seminole Compacts were more of a financial tsunami than a torrent. The state is expected to receive about $750 million a year in revenue from the tribe's six casinos. HB 1638 would require 96% of those funds to be transferred to the Indian Gaming Revenue Clearing Trust Fund.

“In recent years, our state has made unprecedented investments to protect our wildlands, improve water quality and protect our natural resources,” added Florida Department of Environmental Protection Secretary Sean Hamilton. “The stable revenue generated by this legislation will allow the state to redouble its efforts to protect Florida’s natural resources for generations to come.”

DeSantis signs another gaming measure

In addition to using Seminole funds for environmental purposes, DeSantis on Thursday signed a law allowing the state to retain and sell seized slot machines and assets related to illegal gambling operations.

House Bill 5203 would allow illegal gaming terminals seized by the Florida Gaming Control Commission (FGCC) to become state property. The legislation provides a legal framework for FGCC to subsequently sell such properties and deposit the proceeds into its Pari-Mutuel Wagering Trust Fund to cover its operating costs.

Cash "and other valuables" obtained through investigations can now also be withheld by the state. The law would significantly increase the state's ability to seize slot machines deemed illegal by the FGCC, particularly arcade machines that continue to litter shopping malls under the guise of skill-based entertainment.

The FGCC oversees all forms of commercial gambling in the state except the state lottery. The agency regulates slot machines, pari-mutuel wagering and card rooms in Miami-Dade and Broward counties. The commission also provides oversight of tribal gambling compacts "and other forms of gambling authorized by the state constitution."