This is the fight to watch in 2012 

The controversial Florida casino bill that could open the door to three casino resorts in Miami-Dade and Broward counties was filed last Wednesday. According to the South Florida Sun-Sentinel, a “veteran capitol staffer” called the 142-page Destination Resort Act “the biggest money bill the legislature’s seen in perhaps 20 years.”

That sentiment likely is universal. Observers on both side of the debate cannot underestimate the financial implications of the bill, which if passed could transform Miami into the gaming capital of the Southeast, cut into established Indian gaming interests, and possibly sound the death knell for the state’s parimutuels.

Broward County Senator Ellyn Bogdanoff and state Rep. Erik Fressen of Miami, both Republicans, sponsored two identical casino bills, which could present lawmakers with the most contentious issue of the 2012 legislative session. As casino operators including Genting and the Las Vegas Sands Corp. position themselves as possible market leaders, critics of all-out casino gaming in the Sunshine State are organizing the opposition.

The Florida Chamber of Commerce has already spoken out against destination casinos; its allegiance is to entertainment giants including the Walt Disney Company. Disney, along with Universal Studios and Sea World, do not want the family-friendly image of South Florida defiled—or their stake in the revenues eroded. The convention business that now gravitates toward Orlando could also be redirected to Miami if the new casinos are built.

According to the Sunshine State News, the Florida Restaurant and Lodging Association joins the chamber in opposing the expansion. It called the destination casino bill a “rose surrounded by thorns.”

“Whether it is called destination resorts by proponents, or casino hotels by opponents, it still boils down to one incendiary issue—gambling,” according to a statement from the restaurant association. “Should we gamble our decades of work to build our wholesome reputation on the risky proposition that those big-spending foreign gamblers will solve our economic problems? The answer is an overwhelming no. Any benefit to Florida will never outweigh the heavy cost.”

The bill, if it becomes law, could spell the end of the parimutuels, including 55 horse and dog tracks, jai alai frontons, and card rooms. As Bogdanoff herself has conceded, a goal of the bill is to reduce certain kinds of gaming in the state in favor of gaming “that is actually going to produce revenue.” With no way to compete with mega-casinos, parimutuels would almost certainly continue their long downward spiral.

Dan Adkins, president of Mardi Gras Gaming and Racetrack in Hollywood, told the Herald that the state needs to think carefully before proceeding with the massive expansion.

“There could be huge negative impacts on surrounding businesses like hotels, restaurants and retailers,’’ he said, “not to mention the loss of revenue and jobs from the existing casino-racino industry and the Seminole compact. A detailed thorough study is the only way to prevent a negative irreversible situation.”

The Seminole compact, which pours millions into state coffers each year, will be nullified if the tribe loses its monopoly on Vegas-style gaming. The tribe operates seven casinos in Florida, five with blackjack and table games.

Three casino licenses would be up for grabs under the provision; each would require a refundable $50 million application fee and a mandatory investment of at least $2 billion in the casino and accompanying hotel, restaurants, shops and other amenities, the Sun-Sentinel reported.

Genting, for its part, has already spent more than $300 million to buy up some 30 acres of bayfront land in Miami, and has announced its plans to build a $3 billion resort as its centerpiece. Besides the Sands Corp., other interested parties could include Wynn Resorts, and even the Miami Dolphins, which may want the land surrounding their football stadium to be considered for a casino license; the team would not directly act as operator.

The applicants would be judged in part on their ability to draw tourists from Latin America, Asia and Europe as well as the U.S. To that end, the Edge of Malaysia reports, the Genting group is willing to buy half the seats on direct flights from Asia to Miami.

“We will tell China Eastern or Air China that we will guarantee 50 percent of the seats,” Genting Americas President Colin Au told the Herald.

Au said destination casinos in Florida can entice a third of the estimated 13 million East Coast tourists who now visit Las Vegas, create 100,000 permanent jobs, realize $1 billion to $2 billion in revenue, and, assuming a 10 percent tax rate, contribute $400 million to $600 million to the state.

“At the end of the day,” Au said, “we are a sin industry and the most important thing is to make the economic development benefits far outweigh anything else. God, or nature, has given Miami the weather, location, stability and the crossroads of three continents.”

The legislature will begin hearings on the bill in January.

By Staff