Florida Economists Measure Gambling’s Impact

The Orlando-based group Voters in Charge has collected 100,000 of the 700,000 signed petitions required to place on the 2018 ballot a proposed constitutional amendment requiring statewide voter referendums for new casino projects. That milestone kicked of an assessment of the amendment's economic impact by legislative economists.

Economists for the state of Florida recently began work to measure the economic impact of a proposed constitutional amendment that would require statewide voter referendums for any new casino projects. The Orlando-based group Voters in Charge has collected 100,000 out of the 700,000 signed petitions required to place the initiative on the November 2018 ballot.

Several issues are involved in the assessment. First, in the mandatory referendums, voters could reject destination resort casinos sought by gaming companies, leading to the loss of tax revenue from those operations. Also, rejecting destination resort casinos would protect exclusivity agreements between the state and the Seminole Tribe of Florida, that generated billions of dollars for the state.

Furthermore, if the destination resort casinos are built, gaming officials said new tourists would flock to the state. However, since Florida already is a tourist destination, opponents have cautioned the casinos would cannibalize the existing tourism industry. Those costs should be considered in assessing the proposed amendment, critics said. Chief Legislative Economist Amy Baker said, “Florida’s always unique because we have tourists. We’re a tourist destination, so we’re kind of in hyper drive for anything that happens elsewhere, if you bring it into Florida.”

John Sowinski, chairman of Voter in Charge, added, “What we have seen time and time again with gambling is that the revenue figures and the jobs figures are exaggerated, and the social costs are much greater. We think that’s why this is a decision that ultimately belongs with voters, not with the politicians.”

Meanwhile, another decision regarding gambling in Florida ultimately will belong in the courts. The state and the Seminoles both filed lawsuits in October over the tribe’s compact, now expired, guaranteeing it exclusive rights to offer banked card games at five of its seven casinos. The state claims the tribe must stop operating the card games, and the tribe said the state invalidated the compact by allowing electronic blackjack at racinos. The two lawsuits have been consolidated into a single case that will be heard by in Tallahassee by U.S. District Judge Robert L. Hinkle in October.

As the battle drags on, Florida taxpayers have paid more than $260,000 to private law firms–so far. The state Department of Business and Professional Regulation, which oversees gambling, has hired two law firms to work with agency attorneys on the case—Detroit-based Dickinson Wright and Tampa-based Bush Ross.