News Accounts Around State

Senate OKs expanding gambling statewide
Plan to lower tax rates on slot machines in Broward also approved

By Linda Kleindienst
Copyright © 2008, South Florida Sun-Sentinel
Thursday, March 13, 2008

TALLAHASSEE: Covetously eyeing the hundreds of millions it could bring into state coffers, the Florida Senate on Thursday approved a plan to expand gambling statewide.

The senators also voted yes to a plan to lower tax rates on slot machines in Broward County to help their owners compete against the Seminole Tribe's casinos.

The future of both bills is questionable -- House Speaker Marco Rubio adamantly opposes any expansion of gambling in Florida. But proponents said the package of bills would help the state's struggling pari-mutuels, some of which have operated in Florida for more than 70 years.

The plan would allow all pari-mutuels in the state to operate video lottery terminals, a type of slot-like machine that operates like a bingo game, with players competing against each other. They are not the same as the Las Vegas-style slots, which offer bigger payouts and have players compete against the house. The Vegas slots are now operating in three Broward pari-mutuels and are allowed in seven Indian casinos across the state.

"The time has come to help our good corporate citizens," said Sen. Dennis Jones, R-St. Petersburg, who is chairman of the Senate's Business Regulation Committee.

The video lottery bill, sponsored by Jones and expected to raise up to $500 million a year for public schools, passed the Senate in a 27-11 vote.

The tax break measure sponsored by Senate Democratic Leader Steve Geller, D- Cooper City, would reduce the tax on Broward's slot machines from 50 percent to 35 percent. It passed the Senate 25-12.

"At 50 percent, the pari-mutuels are losing money or just breaking even," Geller said. "If the Indians get additional gambling and the pari-mutuels don't, I'd expect at least one or possibly all three to close."

The Indian slots are not taxed, but a compact the tribe signed with Gov. Charlie Crist guarantees a $150 million-a-year payment to the state.

While Broward voters approved slot machines at the county's four pari-mutuel facilities, only three have so far chosen to install them - Gulfstream Park and Mardi Gras Race Track and Gaming, both of Hallandale Beach, and The Isle Casino in Pompano Beach. Geller said Dania Jai-Alai, and three pari-mutuels in Miami-Dade County recently authorized by voters to install the slot machines, are likely not to do so unless the tax rate goes down.

Linda Kleindienst can be reached at lkleindienst@sun-sentinel.com or 850-224-6214.


Dog track slots bill remains long shot
Senate passes plan, but House is opposed

By MARK S. KRZOS
mkrzos@news-press.com
Friday, March 14, 2008

At one time there were nearly 30 greyhound racetracks in Florida. Now there are 13.

The odds the remaining survive - including the Naples-Fort Myers Greyhound Track - increased a bit Thursday when the Florida Senate voted to allow slot machines at every racetrack and jai alai fronton.

The plan would allow pari-mutuels to operate video lottery terminals - a type of slot machine that pits players against one another as opposed to Las Vegas-style slots, which pit players against the house and offer higher payouts.

Passage of the bill, sponsored by Dennis Jones, R-Seminole, remains a long shot, however.

The Republican-controlled House opposes an expansion of gambling.

A companion bill also passed the Senate. It would give South Florida jai alai frontons and horse and dog tracks a tax break on their slot machine earnings to help compete against expanding Seminole Indian gambling. That does not affect Southwest Florida.

Despite the House's stance, Izzy Havenick, vice president of Southwest Florida Enterprises, owners of the Naples-Fort Myers Greyhound Track, is optimistic.

"We're excited and we think it's great for Florida and will be an economic boon," said Havenick, whose family owns the Bonita track and Flagler Dog Track. "It's no secret that the state of Florida is in desperate need of revenue and this is a realistic way to raise money without raising taxes."

Conservatives remain opposed to an expansion of gaming.

"I just want to rise in defense of communities," said Sen. Ronda Storms, R-Brandon. "Like cancer, it creeps everywhere and then you have an endless expansion of gambling."

Storms noted the state's sheriffs are opposed.

"They do understand the increase of crime," she said.

While noting the measure could raise between $354 million and $500 million for education, Jones said crime fell an average of 7.3 percent in Broward County when gambling was expanded there.

As much as $3 million in gambling revenue is dedicated to increased law enforcement, making the establishments "the safest place to be," Jones said.

Bonita Springs City Manager Gary Price isn't buying the pro-slots arguments.

"We pay $2 million a year for 16 community policing officers, so $3 million statewide is chump change," said Price, who questioned if the addition of slots would bring any benefit to Bonita Springs.

Price said the goal of casinos is to keep people in casinos, and that there was talk of building a hotel at the dog track in Bonita Springs.

"If they do something like the Hard Rock, how many of those people do you think would leave (and spend money in Bonita Springs) when they have restaurants and nightclubs right there?" he said. "I don't see much benefit in it."

Nancy Hamilton, spokeswoman for the Lee County Visitor & Convention Bureau, said she wasn't sure if slots would be beneficial.

"I think it'll depend on how they set it up," she said. "If it stimulates the local economy, we'd be in favor of it."

Gov. Charlie Crist last year signed a compact with the Seminoles allowing the tribe to have blackjack and Las Vegas-style slot machines. The state's pari-mutuel industry also wants a piece of that action.

Havenick sees slots as the life-saver for pari-mutuels - and the only way to even the playing field between that industry and the Seminoles.

"The Immokalee casino is right up the road and it's no secret that they're going to be doing something there," he said. "This would allow us to compete, remain a local tourist attraction, create more jobs and raise money for the Naples, Bonita Springs and Fort Myers area."

That's music to the ears of Bonita Springs City Councilman Dick Ferreira.

"That's one of the things the council pressed on our lobbyists last year - that any increase in gambling ... the local community will get a piece of the action," Ferreira said.

"It's not a moral issue for me. We are concerned about public safety, but we're also concerned about more people coming to the track and impacting our roads and infrastructure."

Havenick said while clearing the Senate was a big step, getting past the more conservative House is an even bigger hurdle.

"We're a long way off," he said. "Even if it moved fast, the earliest we could see slots is 2009 or 2010."


Senate OK's slots

Jim Ash
News Journal capital bureau chief
Copyright © 2008 The Pensacola News Journal
Thursday, March 13, 2008

TALLAHASSEE -- Over the heated objections of religious conservatives, the Senate voted today to allow slot machines at every race track and jai-alai fronton in Florida, although the bill's fate is far from certain.

"I just want to rise in defense of communities," said Sen. Ronda Storms, R-Brandon. "Like cancer, it creeps everywhere and then you have an endless expansion of gambling."

Storms warned that the state's sheriffs are opposed.

"They do understand the increase of crime," she said.

The measure by Dennis Jones, R-Seminole, passed 27-11.

Noting that the measure could raise between $354 million and $500 million for education, Jones countered that crime fell an average of 7.3 percent in Broward County when gambling was expanded there. As much as $3 million in gambling revenue is dedicated to increased law enforcement, making the establishments "the safest place to be," Jones said.

"Quite frankly, crime has gone down where we have expanded gambling," Jones said. "That's a win-win not only for the state, that's a win-win for your constituents."

The measure would allow Class II slot machines at 20 horse and dog tracks and jail-alai frontons outside of Miami-Dade and Broward counties. Unlike Las-Vegas style slot machines, Class II machines have smaller pay outs and gamblers play against each other, not the house.

But Jones's bill faces an uphill battle. House Speaker Marco Rubio told reporters Wednesday that even though lawmakers are frantically searching for ways to trim the budget by $3.7 billion, he will not consider using gambling revenues to ease the pain.

Gov. Charlie Crist recently signed a compact with the Seminole Tribe of Florida that would give them exclusive rights to Las Vegas style gambling in their casinos, and the state could lose $100 million a year from that deal if competitors are allowed to do the same.

The Senate also voted 25-12 to approve a measure by Democratic Leader Steve Geller of Cooper City that would reduce state tax rates for Broward County slot machines from 50 percent to 35 percent in exchange for a guarantee of an eventual $123 million in education funding.

Geller pitched the idea as economic development.

"At a 50 percent tax rate it is unlikely they will open," Geller said.