HOLLYWOOD, Fla. - The casino business likes the odds that a new pro-gambling climate is coming to Florida.
The first state-sanctioned slot machines should start spinning at racetracks here in Broward County in December. Operators say once legislators get comfortable with the business - and the tax revenue it generates - they might consider loosening restrictions on the new "racinos" and let them expand in Florida.
Industry officials also believe they could get a better reception in Tallahassee come January with the departure of Gov. Jeb Bush, an ardent casino opponent.
Casino companies have longed to get a foothold in the Sunshine State. Florida demographics hit a sweet spot for the industry: lots of seniors, residents with high disposable income and flocks of tourists.
"If you're going to design a prime market for the gaming industry, you'd be hard-pressed to come up with a better market," said Charles Anderer of Ascend Media Group, co-sponsor of the Florida Gaming Summit held Tuesday at the Seminole Hard Rock Casino in Hollywood. "Florida has the potential to be a great market, even if it's just starting with slots in Broward."
Of course, the gambling business thrives in Florida already, from dog tracks and Jai Alai frontons to off-shore casino boats. Indian casinos like the Seminole Hard Rock in Tampa, with card games and electronic bingo machines dressed up as slot machines, make up a $1.3-billion-a-year market alone.
But the appearance of slots in Broward is a watershed event.
Florida voters narrowly approved a constitutional amendment in 2004 that let Broward and Dade counties vote on allowing slots at existing parimutuel facilities. The proposal won in Broward but was defeated in Dade.
Two horse tracks, a greyhound track and a Jai Alai fronton are preparing for slots. Mardi Gras Racetrack and Gulfstream Park have state licenses and expect to open for slot business in early December.
Mardi Gras' parent, Hartman & Tyner Inc., has pumped $40-million into renovating the clubhouse and plans to pour in millions more to build four restaurants, shops and a hotel, said vice president Daniel Adkins.
In-state competition
But the investment isn't a slam dunk. The state law that allowed the referendum put severe restrictions on slot facilities. The state gets 50 percent of gross revenue. There's a cap of 1,500 slot machines for each site, and owners can't put automatic teller machines on their property.
Republican opponents of the bill "intentionally set the bar so high to keep them from succeeding," said State Sen. Steven Geller, D-Hallandale Beach.
Then there's competition from the unregulated Seminole Hard Rock Casino. Instead of slots, the casino has bingo machines with spinning wheels in which customers play against each other instead of the house.
But the casino is open 24 hours a day, while the racinos will be limited to 16 hours. The glitzy Hard Rock also has restaurants, gift shops, a 500-room hotel and big-name entertainment like Jay Leno and Jackie Mason on its upcoming schedule.
"The lack of competition was fun, but we wish the tracks good luck," James Allen, chief executive of gaming operations for the Seminole Tribe of Florida, told more than 100 gaming operators and vendors at the conference. "We think it's good for the state and for gaming in general."
The Seminoles, which own seven gaming facilities in Florida, have tried in court and negotiations with the state to get full-fledged casino gambling, called Class 3 gaming.
Crist or Davis?
Bush insisted that the state regulate any Class 3 gaming. There are other issues, such as whether the tribes should pay a share of revenue. Negotiations broke off last summer, said Allen, who didn't rule out further discussions before Bush leaves office.
Would Florida be friendlier to casinos under Charlie Crist or Jim Davis?
"Neither one is really pro-gambling," said Geller, the state senator. "But neither is as vehemently against gambling as Gov. Bush."
Federal law makes it "crystal clear" that states must allow Indian tribes to offer any type of gambling that they sanction anywhere else, Allen said. The tribe petitioned the National Indian Gaming Commission to sanction slots at its casinos. The issue is now before the U.S. Secretary of the Interior Dirk Kempthorne.
Steve Huettel can be reached at huettel@sptimes.com or 813 226-3384.