The Seminole Tribe of Florida’s plans to expand its casinos and resorts would siphon approximately $100 million a year in business away from other Florida hotels and motels, according to projections by state economists.
That includes $60 million in cannibalized convention-tourism business and $38 million in diverted leisure-tourism business, according to the report, which was released last week.
State lawmakers commissioned the study as they debate whether to ratify Gov. Charlie Crist’s gambling compact with the Seminoles, which allows the tribe to operate Las Vegas-style slots and table games such as black jack. The Seminoles, whose holdings include the Hard Rock casino near Tampa, say they have planned $3 billion worth of resort expansions should the governor’s gambling pact be approved.
Economists say the projected $100 million annual hit to competing lodging businesses is a conservative estimate. “The stated losses do not include the impacts to other attractions, pari-mutuel facilities, equipment and room rental at convention centers, or any activities that would have been chosen by residents from surrounding communities in the casino’s absence,” wrote the Legislature’s Office of Economic and Demographic Research.
They also noted that Florida lodging and convention businesses would be at a “competitive disadvantage” with the Seminole Tribe because they do not have to pay sales taxes. Items sold by the tribe and purchases made by the tribe or any of it solely owned entities are not subject to the state’s sales tax.