"Charlie Crist, Florida’s governor, first tried to make a gambling pact with the Seminole tribe in late 2007. It seemed a good idea if some of the money they took in from their seven casinos—which Indian tribes, as sovereign powers, may run on their reservations—was earmarked for the state. However, he forgot to consult the legislature before he signed the papers; and the state Supreme Court, taking the miffed lawmakers’ side, nullified the pact the next year.

Since then, recession has bitten Florida as hard as anywhere, and the casino revenues have come to seem even more desirable. So a second version of the pact was signed by the governor on August 31st, just hours before a deadline imposed by the legislature. This one will last 20 years, rather than the original 25, and the Seminole will pay Florida a minimum of $12.5m a month for 30 months, or $375m in all, for the privilege of operating their slot machines and blackjack games, which at present they are running illegally.

Most of the money will go to the state’s education system, from kindergarten classes up to state universities. For that reason, lawmakers are highly likely to pass the pact this time. Erik Eikenberg, Mr Crist’s chief of staff, who helped to negotiate the second pact, points out that the new agreement will create an extra 45,000 jobs, “which would be welcome in an economy that is looking for money”. It will also put an estimated $6.8 billion into Florida’s economy over the next 20 years."

Get the Story:
Indian gold (The Economist 9/3)