Florida state Rep. Dana Young’s comprehensive gambling bill, HB1233, recently was discussed in a legislative workshop, “to give members an opportunity to not only discuss and debate the status quo but also alternative visions for gaming in Florida,” she said. “There are so many trade-offs and moving parts in this issue. We want to really flesh out what options are available to the legislature.” Young added she is “completely open-minded and flexible to reworking the bill.”
But since no vote was taken, only one month remains to move any gaming bill forward.
Among those moving parts are measures to allow two destination resort casinos in South Florida, decouple dog racing from slots, establish a statewide gambling commission and require a constitutional amendment to prohibit new gambling in Florida unless statewide voters approve.
In the Florida Senate, a guarded President Andy Gardiner said, “This legislation was filed by a top member of the House leadership team. I take that as an indication of the House’s position on the issue. If the House sends us Leader Young’s bill, with time permitting it would certainly receive a full vetting in the Senate.”
Anti-gambling groups also have voiced their opinions. The Orlando-based No Casinos released its own 30-second ad about the issue. President John Sowinski said Young’s bill “invites wall-to-wall casino gambling in Florida, and the social costs and crime that go with it.”
Rep. Evan Jenne says a large majority of House members oppose the bill, saying if it was put to a vote now, “it would be torn to shreds.”
The elephant in the room is the compact with the Seminole Tribe of Florida, whose arrangement allowing for exclusive rights to offer blackjack in exchange for paying the state $1 billion over five years, will expire July 31. Governor Rick Scott has halted negotiations with the tribe, said Seminole General Counsel Jim Shore. “In January when we asked to restart the negotiation, he told us to talk to the legislature, so we haven’t had any direct communication with the governor since then,’’ Shore noted. “We want to see if there is a way to extend the contract before it expires. We’re still early in the game. We’re trying to figure out where everybody is on the compact or gaming issue.”
But Jim Allen, Seminole Gaming chief executive officer, more emphatically stated that the House bill includes something “for everyone—but not the Tribe. If that’s what the state wants to do, there is no more relationship with the Seminole Tribe.”
The tribe has launched an extensive ad campaign focusing on how Indian gambling is “controlled, profitable and safe.” The ads also highlight how the card game provision has enriched Florida over the years. In addition, the tribe released a poll indicating 61 percent of Florida residents “support renewing the Seminole compact and oppose the expansion of gaming.”
Many legislators believe the state can collect $350 million in annual revenue from two casinos allowed under Young’s bill, compared to $250 million generated annually from the Seminole compact. But Allen said the “math doesn’t work. The bill also suggests a 10 percent tax rate cut for the parimutuels. When you reduce that amount of revenue share with the state of Florida, we believe the math would demonstrate that the state of Florida would actually be going backward.” He added, “We’re always amazed when somebody says, well, let’s do destinations when the state has this amazing opportunity to continue to grow their relationship with the tribe.”
For years, Sands Las Vegas Corporation, Malaysia-based Genting Group and other operators have proposed building “integrated resorts” in Florida with Las Vegas-style casinos, convention space, high-end retail and celebrity chef restaurants. Sands Las Vegas lobbyist Nick Iarossi said his client “applauds Rep. Young’s courage to bring forward legislation to fix Florida’s gaming environment,” adding Sands officials would like to discuss “some ideas to improve the legislation. It is a very difficult and complex issue with many interested parties to consider, but the bill is a solid starting place that attempts to address the issues of all stakeholders and improve regulatory oversight.”
Operators of horse and dog racetracks and jai-alai frontons also want to be included in expanded gambling discussions. Regarding the Seminole Tribe’s competitive advantage,, Dan Adkins, president of Mardi Gras Casino in Hallandale Beach, said, “Right now, we are handcuffed. We feel we are in a race but started 40 yards behind.”
Adkins said parimutels’ racetrack casinos are open only 18 hours on weekdays. They aren’t allowed to offer customers free drinks. Above all, they pay a 35 percent tax on slot revenues, while the Seminoles pay a revenue share of about 12.5 percent. He added while the Seminoles had revenues of $2.2 billion last fiscal year, with $1.1 billion from its three Broward casinos, the parimutuels took in $550 million from slots and poker. Casino Miami Chief Executive Officer Dave Jonas said, “Right now we appeal to only a very small audience. Table games create customers who stay overnight.”
Jonas has suggested that legislators allow racinos to add blackjack and also lower their taxes from 25 to 20 percent. At the same time, he said, lawmakers should let the Seminoles add craps and roulette to their existing table games in exchange for payments to the state. With those changes, parimutuels could expand their businesses and build 300-400-room hotels, attracting regional visitors who also would spend time at other South Florida attractions.
The parimutuels also fully support decoupling racing and jai-alai from gambling options. Adkins commented, “Or if you wanted the market to be fair, you could make the Seminoles or the destination casinos to open a dog track or jai-alai fronton. For us to still be required to have dog racing is like Michigan telling GM, ‘It’s OK to build an F-150, but you still have to build the Model T.’ “
Jonas added, “We don’t have any gripes with the Seminole compact, and we’re even okay with destination casinos. But what we’re saying is give us a free market. That’s been our position from Day One.”
“The Senate wants to do the responsible thing on behalf of the state,” said Senator Rob Bradley, who heads the committee that considers gaming issues. “The responsible thing is to see if there is any progress to be made with the tribe.”
