The Florida Senate Regulated Industries Committee unanimously approved SB 8, an expanded gambling plan that would bring in up to 5 million in revenue sharing from the Seminole Tribe this year—much needed help for the state’s billion revenue gap. The measure’s sponsor and lead Senate negotiator state Senator Bill Galvano, said, “Sure it’s about gaming but it’s also about creating stability for a dubious marketplace. It’s about establishing predictability for our state budget. It’s about protecting programs that exist in our state and creating funding opportunities.”
The proposal would allow two new slots casinos—one each in Miami-Dade and Broward counties—which also would offer 25 blackjack tables each; and bring slots to eight additional counties where voters have approved them and allows other counties to approve slot machine licenses after January 1, 2018. The Seminole Tribe would lose its exclusive right to offer blackjack in South Florida, but it could offer roulette and craps at its seven casinos and keep its slots monopoly in Tampa.
House Commerce Committee Chairman and lead House negotiator state Rep. Jose Felix Diaz said, “The Senate’s passage of a gaming bill this early in the year is a gigantic first step. The fact that we are seeing forward progress in January is a testament to Senator Galvano’s willingness to continue a conversation with multiple interested parties, including the governor, the Seminole Tribe and the Florida House.”
Galvano added the committee’s quick and unanimous approval “underscores that the Senate is very serious.” He pointed out the Seminoles have been making monthly revenue sharing payments to the state from blackjack although the exclusivity provision of the compact expired in October 2015. The state has not spent that money while it awaits a new compact. However, if Galvano’s plan is approved, the state could use $200 million of that money plus another $325 million in first-year revenues, which would rise to $450 million after that, he said. “It’s a significant dollar amount and a comprehensive approach to move us forward on this journey.”
The committee’s approval came on the same day Governor Rick Scott proposed a $618 million tax cut plan. Galvano urged Scott to consider the gambling proposal. “I’m not prepared to just sign off on his $618 million tax cut,” Galvano said.
The legislature would have to ratify any new gaming compact between the state and the Seminoles. However, Galvano’s bill incorporates most of the 2015 compact Scott and the tribe negotiated.
In addition, SB 8:
• Creates a new Office of Amusements within the Department of Business and Professional Regulation to regulate daily fantasy sports, including issuing licenses of up to $500,000;
• Allows dog and horse tracks and jai-alai frontons to decouple live racing from other gambling activity,” but limits the window when horse tracks can decide to end racing;
• Reduces parimutuel taxes, particularly for dog racing, and requires higher injury reporting for greyhound racing;
• Reduces the tax rate on slot machines from 35 percent to 25 percent;
• Supplements the purse pool for live horse races up to $20 million;
• Revokes dormant parimutuel permits and prohibits the state from allowing any new permits except those authorized in the bill;
• Allows the division to use $20 million to buy back active racing permits;
• Allows all parimutuel card rooms to offer player-banked card games—ending the legal battle being waged over the issue.
