Seminoles Engaged in Bitter Lawsuit Over Profits

Power Plant Entertainment, a subsidiary of the real estate development firm Cordish Company filed a motion in federal court last Friday to dismiss a lawsuit brought against them by the Seminoles to void all outstanding contracts.

While Power Plant and Cordish say they are owed more than $2 billion (during the length of the existing contract), the tribe claims the two Hard Rock casinos have become so profitable, the payments the Tribe are contractually obligated to make to Cordish are actually excessive, and therefore not legally sustainable.

According to the suit, the Seminole’s Hard Rock Casino & Resorts in Tampa and Hollywood are raking in more than $0.5 billion annually. Contracts currently in place give Power Plant 30% of all gross profits from both gaming and non-gaming operations at these properties.Cordish has already made $310 million from its deal with the Seminoles.

In the motion filed July 14, Power Plant attorney Marty Steinberg accuses the tribe of “astonishing greed” and wants them to quit “whining.” \'\'The Tribe portrays itself as a poor, helpless group that needs protection from companies like Power Plant. In reality, it is and has been a billion dollar enterprise, with sophisticated professionals guiding it,“ said Steinberg. "The tribe has realized colossal benefits. The two Hard Rock Projects are the most profitable hotel/casinos in the United States (earning $500 million in profit annually). Apparently, $17.5 billion is not enough for the tribe, and its astonishing greed prompted it to file this lawsuit.

“The Court cannot permit the tribe to take advantage of its inequitable, unfair and deceitful conduct."



In the opening salvo of this battle, the Seminoles claimed in their initial lawsuit Power Plant invested only $20 million, making a $2 billion windfall during the next 25 years unfair.

However, Friday’s motion counters by explaining that without Power Plant\'s know how on getting large projects done, as well as its ability to secure financing, these properties would have never come to fruition. Power Plant helped obtain more than $400 million in bonds and signed more than two dozen agreements with Power Plant and Cordish before shovels hit the ground.

Power Plant currently does not work for the Seminoles any longer, but stands to make money off this project for the next two decades. Currently the Seminoles are obligated to pay Power Plant about $15 million a month until this matter is settled.

On Saturday, Power Plant’s attorney Steinberg told the Associated Press the Seminoles have no legal basis to bring a claim to void the agreement currently in place, “They\'ve proclaimed in 30 publications to us and others that the agreements are legal and valid, and to suddenly six years later claim they are invalid, after accepting all the benefits, is outrageous.“

In Hollywood, FL, the Seminoles operate an 86-acre resort  between Miami and Ft. Lauderdale. There is a 500-room, 12-story hotel, 130,000-square-foot casino, 4-acre lagoon tropical pool area European-style spa and fitness center, and 5,600 seat theater. The Tampa property has 250-rooms, 90,000 square foot casino and themed pool area.

Both properties offer live poker and thousands of gaming machines. While these machines appear to look like slot machines, they are actually dubbed video lottery terminals, or VLTs. Instead of each game’s result being determined from inside the physical unit, all the machines are connected to the state’s lottery offices, where results are determined by random number generators hundreds of miles from the casinos. These properties do not offer traditional table games such as craps, blackjack and roulette.

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