As the Florida governor’s race hurtles toward November, voters are waiting to see where Republican Governor Rick Scott and his challenger, Democrat and former Governor (and former Republican) Charlie Crist, stand on the issue of Disney versus Las Vegas Sands.
The planet’s theme parks leader, Disney’s Walt Disney World Resort in Orlando and its other parks made more than $14 billion in theme park revenue, or 31 percent of total revenue, in 2013. But in Florida, Disney is battling casino developers that want to build integrated casino resorts in the state. Pro-casino expansion legislation was introduced in the past session but did not go far. At the time, Disney spokesperson Andrea Finger said “the massive expansion of gambling that would come from legalizing megacasinos would be a bad bet for Florida’s taxpayers, tourism brand and existing businesses.”
Still, Disney is seriously lobbying Florida lawmakers; according to Bloomberg, Disney has contributed $1.7 million to state legislators since 2012, though gaming companies and interests combined have contributed $3.4 million. Disney would like to retain its—and Florida’s—family friendly image.
Across the spectrum are Las Vegas Sands and its Chief Executive Officer Sheldon Adelson, pushing for destination casino resorts in south Florida. Currently Florida law allows only the Seminole Tribe’s eight casinos with Las Vegas-style gambling plus 31 parimutuel betting facilities. Adelson would like to capture some of the 18.6 million international visitors who stopped by Walt Disney World in Orlando in 2013. Disney considers Adelson’s vision of a family friendly, fully integrated resort that offers gambling plus a wide range of entertainment a real threat. Las Vegas Sands’ Singapore resort, for example, attracts families with a casino but also with theaters, rooftop pools, shopping, dining, gardens and more. Las Vegas Sands’ competitor in Singapore, the Malaysia-based Genting, teamed with Universal Studios to offer a family friendly resort with a casino.
Where will Scott and Crist come down in regard to Disney versus destination casinos? Soon after Scott was elected in 2010, he met with Sheldon Adelson in Las Vegas about potential investment in Florida. Genting, which bought the former Miami Herald building and surrounding properties in hopes of developing a mega-casino, said allowing casino expansion could create up to 100,000 new jobs in the state. A legislature-commissioned study issued last year noted allowing casino resorts could increase spending in Florida by $1.5 billion a year. Asked his opinion recently, Scott’s office issued this noncommittal reply: “We are currently reviewing all the gaming issues facing Florida and look forward to discussing these issues in more detail in the days and months ahead.”
However, given his relationship with Adelson and unconcealed ambition for national office, observers believe Scott will most likely support expanded gambling. Previously he had said gambling expansion could create more jobs and tax revenues for the state.
Crist has not yet made any definitive statements about where he stands.
However, several business leaders recently voiced their opinions about legalizing destination gambling in South Florida. In a poll, 24 percent said they favored legalizing destination gambling, 40 percent said they did not favor it and 36 percent were uncertain.
In support of destination gambling, Ben Baldanza, chief executive officer at Spirit Airlines, said, “I’m in favor of things that stimulate the economy of this area. If it’s proven that destination gambling can do this, and the unintended consequences can be handled well, then I can support it.” Brad Meltzer, president of Plaza Construction Group Florida, stated, “I believe it will provide our economy with another industry that will have consistent employment needs which will temper South Florida’s historical economic peaks and valleys.” And Maureen A. Shea, chief executive officer of Right Management, said, “Legalizing destination gambling in South Florida is great for our tourism- based economy!”
John Sumberg, managing partner at Bilzin Sumberg, noted, “Florida is already home to widespread gaming, yet the state is not capturing the full benefits when it comes to taxation and tourism. Our firm represents interests that are working to expand gaming in Florida and I believe that destination resort casinos—if implemented the right way and with adequate infrastructure—can be an asset for our state and our region in particular.”
Opposing legalizing destination gambling, Eddy Arriola, chairman at Apollo Bank, said, “We have plenty of gambling in South Florida already and I’m struggling to see the overall benefit to our community. I can’t find a person to look me in the eye and say that they are happy to raise children in a community that is willing to make a big long term bet on gambling.” Daniel Cane, chief executive officer at Modernizing Medicine, noted, “I feel that the time, effort and funds needed to build a successful gambling industry could be better spent on developing entrepreneurial or technological ventures to draw businesses and people to South Florida that will raise the status of the tri-county area both in the eyes of Americans and the international business community.” And Ana-Marie Codina Barlick, chief executive officer at Codina Partners, stated, “I feel very strongly that destination gambling would, at the very least, set back our progress and, at worst, undo much of what we have gained. We are a major destination without casinos so why risk all that we have accomplished as a community for the dubious promise of additional tax revenue?”
Those in the Uncertain category can see the pros and cons. Ana Lopez-Blazquez, chief executive officer at Baptist Health Enterprises, said, “I am uncertain because I can see both the opportunity this would provide from an economic development perspective given our huge tourism and service sectors but also see the perceived negatives that are typically associated with destination gambling cities.” Mike Jackson, chairman and chief executive officer at AutoNation, added, “On the subject of gambling you can see merits for and against, like jobs and economic growth; there are risks that have to be managed.”
