Gambling is on the upswing in South Florida as net slot revenue in November 2014 rose 4.2 percent to more than .6 million, continuing monthly year-to-date increases. As a result, if tax money to the state continues to rise, gambling taxes could surpass 1 million for the fiscal year.
To date, October has been the weakest month, but November bounced back strong. Isle of Capri at Pompano had an increase of 12.5 percent with $11.6 million in net slot revenue, accounting for the largest percentage increase statewide thanks to its location, facility and aggressive marketing. Hialeah was up 11.3 percent and Magic City in Flagler came in third with 9.1 percent. Operations moving in the other direction were Calder, down 2.4 percent and Miami Jai Alai off 10.4 percent. At other racinos, Gulfstream was up 4 percent and Mardi Gras was down 5 percent. Both are located near the Seminole Hard Rock Resort and Casino in Hollywood, the leading gambling property in Florida.
The state’s parimutuel options soon may be increasing, as Tampa Bay Downs has reached an agreement, subject to regulatory approval, to buy Tampa Greyhound Park in order to keep the facility’s simulcast operation open for betting on thoroughbreds, standardbreds, greyhounds and jai alai. The simulcast facility does approximately $14 million in handle on horses each year, said Tampa Bay Downs General Manager Peter Berube. The dog racetrack has not run live races since 2006.
Berube stated, “We knew the property was for sale, and we had become somewhat nervous that a developer would go in there and close the simulcast operation. It’s a big source of revenue for our purses, and what we’ve found is that when a simulcast facility closes, that handle just disappears.”
While the fate of the former greyhound racetrack became clear, the future of the 14-acre former Miami Herald campus, purchased by Malaysian casino group Genting for $236 million in 2011, remains murky. Genting Chairman and Chief Executive Officer KT Lim had said the proposed gambling mecca at the site would become “the face of Miami.” Now it’s a field of debris, the result of the painfully slow removal of the Herald building, which briefly was stopped last year when Miami building officials said the contractor was using unsafe methods. Genting spokeswoman Heather Krasnow demolition work should be completed by the end of the month.
But then what? Said Krasnow, “We continue to evaluate the market and plan to build a first-class project of suitable size and proportion for the land and marketplace.”
Genting’s push for legislation allowing gambling in South Florida did not work out in the past session and look even worse for the one coming up in March, especially since incoming state Senate President Andy Gardiner, an Orlando Republican, fought hard against Genting and its lobbyists.
Miami Mayor Tomas Regalado said the city has not heard from Genting “in several months.” He added, “There are no plans at all about construction at the old Miami Herald.” Of course speculation of all sorts runs rampant. One rumor has it that Genting will sell the property now that a condo boom is in full swing. A 1.25-acre of vacant land on the Miami River downtown recently sold for $125 million. Miami mega-developer Jorge Perez, chairman and chief executive officer of the Related Group said a senior Genting official contacted him six months ago to discuss co-developing the Herald site. There even was talk that Genting was negotiating with retired soccer star David Beckham’s group, which has been seeking land to build a stadium for a new Miami team. The Beckham group said no serious discussions were held.
Miami Realtor Sharon Dodge, a former Venetia association board member and founder and board member of the new Biscayne Neighborhoods Association, said the situation has been “truly strange. And that’s the most notable thing about this. In the early days, they were looking to be good neighbors. They promised a park-like baywalk and shops and restaurants that we would have easy access to enjoy. We have not heard hide nor hair from them since.”
Dodge added, “I think there is probably some truth to rumors that they’re clearing the land to shop it. It would be very surprising if there was anything in current plans and we would not know something. The complete absence of that argues this is up for grabs.”
Genting appears to be focusing on establishing its Resorts World-branded casino resorts on the Strip in Las Vegas, at the former Stardust site, and in Bimini.
