Appeal Reverses Florida Slots Decision

An appeals court in Florida last week reversed a decision by a lower court that could have permitted all state parimutuel facilities to install slot machines. The 1st District Court said slots could not be installed at Creek Entertainment Gretna, near Tallahassee, which also offers poker (l.) and off-track betting. Meanwhile, horseracing officials are concerned that lawmakers may decouple gaming from horse as well as dog racing.

A court decision that would have permitted slot machines at all Florida parimutuels was reversed last week by the same court, throwing that effort into limbo. The 1st District Court of Appeals last week voted 2-1 to reverse the order that would have allowed slots at Creek Entertainment Gretna, a flat-track horse racing track 25 miles west of Tallahassee. The court made the original decision in part because Gadsden County voters approved a referendum authorizing them.

Attorney General Pam Bondi vigorously opposed the previous decision, calling it a “monumental change” of previous laws. The decision was reversed because one of the original judges retired since the first decision was handed down, replaced by an appointee of Governor Rick Scott, who also opposed that ruling.

But it’s not over yet. Along with the decision comes a request for the Florida Supreme Court to review both rulings, citing an important issue in Florida. Several counties, including Gadsden, have approved slot machines in their jurisdictions. Currently, slot machines are limited to South Florida racetracks and parimutuels, as well as casinos owned by the Seminole and Miccosukee tribes.

“We are disappointed with this reversal, and we look forward to a review from the Florida Supreme Court where we feel this issue will be resolved in our favor,” said James Dorris, president and CEO of PCI Gaming, which is owned by Alabama’s Poarch Creek Indians.

Meanwhile, rumors are swirling in Florida that legislators may attempt to decouple gaming from all forms of racing, in part a result of the first decision to allow slots statewide. That would require removing a law mandating that certain facilities must offer live racing in order to offer casino-style gambling. The word is out that a special legislative session on tribal gaming compacts in the state, scheduled for later this year, may include a review on decoupling for all forms of parimutuel wagering, not just the typical focus of dog racing.

Kent Stirling, executive director of the Florida Horsemen’s Benevolent and Protective Association, said the rumors are “coming from a coalition of racetracks. The horsemen have not been involved. They’re going to try to change the statute, and, yes, the horsemen plan to fight it.”

Florida HBPA President Bill White questioned why legislators would consider reversing the economic growth that horseracing and breeding have generated since the approval of slots in 2005. “So just imagine our lawmakers’ embarrassment once they realize—perhaps all too late—that by approving decoupling, they will have both inadvertently expanded gambling almost overnight, as well as chased our horsemen right into the welcoming barns of more racing-friendly states. For Florida, the funding of live racing rather than stand-alone casinos creates million of dollars in yearly economic benefit through tourism, creation of small businesses, jobs, taxes and a vibrant breeding industry. Whether it’s Thoroughbred racing in South Florida and Tampa, or Central Florida breeding and Ocala sales, racehorses in Florida are big business. Messing with that progress now, as the industry attempts to reinvent itself, certainly isn’t the way to go.”

White added, “Recognizing this, Florida has traditionally gone to great lengths to provide additional economic and agriculture-based incentives to invest, buy, breed and sell racehorses here at home. Part of that includes ensuring that live racing days remain a mandatory part of the gambling equation with the economic incentive of revenue dollars from slots. Whether the state legislature buys into it remains to be seen—the Thoroughbred racing and breeding industry in Florida has its share of lawmakers that support it and recognize its value. But the decoupling issue is reason enough for racing groups to spend money on lobbyists in Tallahassee.”