Bally, Southeast Tribe Form Uneasy Pro-Casino Alliance in Florida
By Mike Oliver, The Orlando
Sentinel, Fla.
Sep. 26--With ambitions to own casinos "from the Georgia border to Key West," the Seminole tribe aimed
to join forces with one of the giants in the gambling industry.
Both the Seminoles and Bally Entertainment wanted to be ready to open operations statewide in Florida if the legal
barriers to full-blown casinos came down.
Documents released last week show just how high-pressure and cutthroat the talks became. Money demands and hints
of threats come through in a series of letters, memos and expense reports between tribal representatives, Bally
officials and former House Speaker Bo Johnson, who was working for Bally.
"Now is the time, Bo," a developer working with the tribe wrote in 1996 to Johnson. "The chief wants
to see the money."
"This is getting ridiculous," a Bally executive scribbled on a letter from a tribal official who was
asking for a $5 million deposit.
Although this particular deal fell through, the documents give an inside look at the uneasy alliances being forged
between the Native Americans and the casino industry, which is often looking to manage the casinos for tribes.
"In Florida, since the gambling industry was unable to get it legalized through the people, they see this
as a way to get a foothold," said Florida Assistant Attorney General John Glogau, who has fought Seminole
efforts to strike a deal with the state for full-fledged casinos. "They (the gambling industry) used to be
dead-set against it. But they figured if they can't stop it, at least make some money on it."
The Seminoles most recently have been courted by casino magnate Donald Trump, who also had a former speaker of
the House in tow, Mallory Horne. The tribe has four gaming operations in the state and is looking to purchase 3,000
acres in Osceola County.
The newly released documents about Bally were part of evidence submitted during hearings last week by the New Jersey
Casino Control Commission, which was looking into $240,500 in payments from Bally to Johnson.
Johnson is serving a two-year sentence for not paying taxes on consultant income, including some of the Bally money.
Bally officials were not charged in that case, but regulators decided to ask the company about the payments in
a public forum.
Bally's meetings with the Seminoles were never really explored by the commission, which oversees Bally's licensing.
It's not improper for casino companies to pursue legitimate business deals with Native American tribes.
The commission primarily focused on money paid to Johnson while he was still speaker in 1994, $170,000 in payments
for which investigators could find no documented work. Bally that year was pushing a referendum to legalize casinos.
Investigators also couldn't document much work by Johnson in1995, when Bally paid him $47,500. But in 1996, still
on the payroll, Johnson began setting up meetings for Bally with the Seminole Tribe.
The tribe was working with a development company called Hollywood Venture Partners on plans to restore the Diplomat
Hotel in Hollywood and turn it into a casino. But they needed money, and Bally, the world's largest casino business,
certainly had that.
"Bally is our choice to take the Seminole Tribe to Class 3 (casino) gaming and new growth," wrote Bob
Fenton, of Hollywood Venture Partners, in a letter to Bo Johnson.
Fenton told Johnson that his understanding of Bally CEO Arthur Goldberg's vision was to "provide cruise ships,
land-based gaming ... and all other forms of legitimate gaming that Bally and the Seminole Tribe would agree upon
from the Georgia border to Key West."
Johnson set up several meetings between tribal leaders and Bally officials. The negotiations apparently broke down
when Seminole Chief James Billie demanded $5 million up front before allowing Bally to see the financial records
of the tribe's gambling enterprises.
A Bally executive, in an internal letter, wrote "we need to make the point with the Indians" that if
Bally is excluded from the tribe's casinos then the company would launch a public-relations campaign against the
tribe, complete with full-page ads.
Bally wanted to deal in the long term. For a 30 percent cut, Bally wanted to manage the Seminole's $100 million-a-year
bingo operation in Hollywood.
The real allure of the contract, though, was to be on board with the Seminoles when the tribe gained the right
to expand to full-fledged casino gambling.
That could be settled soon. With the support of the U.S. Department of Interior, the Seminoles are preparing for
a federal hearing that could shatter the remaining barriers.
Bernie Murphy, a Bally executive, assessed the Seminole's chances in a March, 20, 1996, letter to his boss Goldberg.
"The fact is that it is likely that the Indians will win," Murphy wrote. "It is just a question
of what kind of process they will use to get what they want."
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