In Florida, SB 1046 and HB 189 recently were introduced to clarify laws about illegal slots and raise the penalties for possessing and operating them.
Currently, slot machines only are legal at eight parimutuel venues in Miami-Dade and Broward counties and at Seminole Tribe of Florida casinos. In May 2023, the Tampa Bay Times reported 70 illegal game rooms operated in the Tampa area and 1,000 were operating statewide.
Dan McGinn, special counsel at the Jones Walker law firm in Tallahassee, representing the state of Florida in an illegal slots case, said unlike other states dealing with games of chance or skill, Florida has no gray area.
According to CDC Gaming Reports, he said, “We don’t have the issue that other states do where it’s is there enough skill or any skill. What the problem in Florida seems to be, and you can see it in the legislative process, is the lawyers and representatives for the arcade industry kind of treat this as disingenuous. They’re the folks leading the charge of not knowing what a slot machine is.”
McGinn continued, “First of all, they know. Everybody knows. The default in Florida, even though we’re a gaming state, is that everything is gaming by exception. Slot machines are statutorily prohibited, gambling is statutorily prohibited, lotteries are constitutionally prohibited. So, there’s the Florida lottery that has a constitutional amendment, slot machine gaming is only permissible in Miami Dade and Broward County, by constitutional amendment.”
Florida Gaming Control Commission Director of External Affairs Eric Carr told CDC that illegal slot machines are found at places “operating under deceptive marketing guises such as adult arcades and internet cafes. The repercussions of this clandestine activity extend beyond mere legal infractions. The funds generated from such illegal gaming operations serve as a financial lifeline for violent criminal enterprises, including the drug trade and human trafficking.”
Carr recent murders at illegal slots arcades illustrate the dangers of hosting illegal slots and the importance of legislative action. He stated from August 2022 through September 2023, the Florida Gaming Control Commission recorded 1,561 reports about illegal slots.
Per CDC, Carr said, “Notably, these reports are location-based, not machine-based. This strains law enforcement resources and compromises the safety of Florida’s communities.”
The proposed bills would classify operating an illegal gambling venue as a third-degree felony instead of a more lenient second-degree misdemeanor. American Gaming Association President and Chief Executive Officer Bill Miller said, “The AGA supports this legislation, which will give Florida law enforcement needed authority to root out illegal gambling machines and enhance criminal penalties to hold bad actors accountable. Defeating the illegal gambling market is critical to protecting Americans and we encourage states across the country to take similar action.”
According to the AGA, Americans annually bet $109 billion on unregulated “skill” machines, causing states to lose $8.7 billion in gaming taxes and $27 billion in legal gaming revenue.
