Property-tax relief: Are slots the answer?

By Breanne Gilpatrick
© 2007 Miami Herald
Saturday, April 28, 2007

In the midst of the impasse over cutting property taxes, the state Senate may be ready to let Floridians gamble their way to property-tax relief.

A proposal to permit slot machines at parimutuels all over the state sailed out of the Senate on Friday, 34-5, with promises of up to $2 billion for state coffers. And talk of higher tax revenue from Broward's new Vegas-style slots has dominated debate surrounding looser regulations for Broward's casinos.

So far, the notion of using gambling revenues to replace property taxes hasn't gotten much traction in the traditionally gambling-hesitant House, with Speaker Marco Rubio and his top lieutenants stiffly opposed to the notion. But, as the end of the legislative session nears, some legislators think gambling dollars belong in the mix as a logical piece to a property-tax compromise.

''I'm not saying it's going to happen, but as we get down to the wire, $2 billion a year may be the way we make up the difference between us,'' said Senate Democratic Leader Steve Geller, of Cooper City.

Under the Senate bill, all of the 25 parimutuel facilities in the state -- four horse tracks, 16 dog tracks and six jai alai frontons -- would be able to expand their gambling offerings by installing slot-machine look-alikes officially called video lottery terminals.

The machines look and play like the Vegas-style slots spinning in Broward's new casinos. But they are Class II machines, in which players bet against one another and not the house, resulting in lower payouts.

NO LAUGHING MATTER

Initially, the idea of turning to one-armed bandits as a property-tax solution was treated as a joke. When Rep. Julio Robaina, a Miami Republican, presented his idea for Vegas-style gaming referendums in all 67 counties, members of the House Business Regulation Committee smirked, while others covered their mouths to hide their laughter.

But in a tough property-tax fight, more people have been willing to at least put the idea on the table in the last days of session.

Proposals to loosen casino regulations at Broward's four parimutuels have moved to the House and Senate floors with few fireworks, a change of luck in a state that has seen its share of anti-gaming battles.

On Friday, the Senate voted 29-9 to approve Geller's bill to add 500 machines at each of Broward's four parimutuels, allow the casinos to remain open more than 12 hours a day and permit ATMs in the facility as long as they remain off the casino floor.

The House also discussed a similar proposal by Rep. Jack Seiler, a Wilton Manors Democrat, which is set for a final vote next week.

For some legislators, their votes have been strictly about dollars and cents.

When members of the Senate Regulated Industries Committee toured Broward's casinos last month, they spent most of the weekend visit praising the millions flowing to the state from the new slots.

And throughout most Senate discussions, there has been almost no discussion about the effects of gambling expansion.

'The only kind of debate we had was, `How much does it raise? And where is the money going to?' '' said Sen. Jim King, a Jacksonville Republican.

The smooth operations and financial windfalls at the two Broward parimutuels that opened last year also have helped gambling proponents raise the stakes.

But using gambling revenue as a property tax solution might still be a long shot.

PROSPECTS IN HOUSE

There are still plenty of House members who are opposed to the idea of expanding gambling. Some lawmakers have argued that adding gaming at all existing parimutuels could create more problems than it solves by promoting compulsive gambling or tarnishing the state's family-friendly tourist image.

''I think it would be a huge mistake,'' said Rep. Juan Zapata, a Miami Republican. ``I don't think people should rely on gaming to pay for taxes. It's a dangerous path.''

And as legislators in both chambers have pointed out, voters statewide have shot down gambling expansion in the past. And promises of property tax relief might not be enough to sway antigaming voters.

''When we allowed slots in this state, it wasn't because the Legislature allowed them,'' said Rep. Carlos Lopez-Cantera, a Miami Republican. ``It was because the voters wanted them.''

Miami Herald staff writer Mary Ellen Klas contributed to this report.