Bill to expand slots to all tracks advances
By Mary Ellen Klas
Copyright © 2008, Miami Herald
Thursday, February 7, 2008
A Senate committee gave swift approval Wednesday to a bill that would allow slot machines at every racetrack and jai-alai fronton in Florida, and bring the state an estimated $354 million more in additional annual tax revenues for education. But the bill, approved 8-1 by the Senate Regulated Industries Committee, faces long odds making it through the House and past the governor.
The measure would allow the 20 horse and dog tracks and jai-alai frontons outside of Miami-Dade and Broward counties to install Class II slot machines, like the ones used for years at Indian tribal casinos.
''It's a win-win for Florida,'' said Sen. Dennis Jones, the Senate sponsor and chairman of the Senate committee.
Jones has long sought approval for the bill to help his district's ailing Tampa Downs, as well as several other racetracks that weren't included in the constitutional amendment that allowed the Class III, Las Vegas-style slot machines in Miami-Dade and Broward counties.
Class II slots are less lucrative than the machines operated at Broward casinos and the ones set to be installed at Miami-Dade racetracks soon. With Class II machines, players play against each other, rather than against the house, and payouts aren't as large. But the allure is just as attractive to both gamblers and racetrack operators, who hope the games will attract new players and revive their dying industries.
Jones said the Senate bill will likely be approved by the full Senate in the first week of the legislative session in March, but he admits it faces a tough climb to passage.
The measure could encounter opposition from Gov. Charlie Crist, who negotiated a gambling compact with the Seminoles allowing the tribe to replace their Class II machines with Class III slots and guaranteeing the state at least $100 million a year for education. But the compact says the tribe would give the state nothing if the state approves additional gambling elsewhere.
Jones believes his bill will not require the state to forfeit the Seminole money, but he said ``others may think differently.''
The House of Representatives has blocked most legislation favorable to gambling in recent years. And House Speaker Marco Rubio, who has sued Crist for using the compact to expand gambling without legislative approval, said Wednesday he has not changed his tune.
''We're not going to balance the budget on the false promises of gambling,'' Rubio said.
Jones' bill also gives operators of Class II machines a distinct advantage over the casinos in Broward and Miami-Dade: a 35 percent tax on revenue, not the 50 percent required on machines in those counties.
''The rationale is, from all indications we've seen from around the country, the actual 50 percent tax rate is an impediment to good business practices,'' Jones said.
Added Sen. Steve Geller, a Cooper City Democrat and slots supporter: ``The 50 percent tax rate doesn't work.''
The committee is expected to take up a bill later this month to lower the tax rate for Broward and Miami-Dade slots operators to 35 percent.
The committee also voted 5-4 for a bill to require that the governor get legislative approval before signing any gambling compact with an Indian tribe.
The bill, sponsored by Geller, passed the Senate last year, but died in the final day in the House.
Geller said that had the House passed the bill, Rubio would not have had to file his lawsuit, but passage of the bill might encourage the state Supreme Court, which is hearing the case, to side with lawmakers now.
Miami Herald staff writer Marc Caputo contributed to this report.
Legislative bill would bar governor
from signing gambling pacts with tribes
By Linda Kleindienst
Tallahassee Bureau Chief
Copyright © 2008, Sun-Sentinel
Thursday, February 7, 2008
TALLAHASSEE: While the Florida Supreme Court mulls whether Gov. Charlie Crist had the power to unilaterally sign a gambling compact with the Seminole Tribe of Florida, the state Legislature has begun moving to assert its right to have the final say.
The Senate Regulatory Reform Committee on Wednesday approved a measure that would require the governor to submit any tribal-state gaming agreement to the Legislature for its approval.
"We think this is already the law. This [bill] just clarifies it," said Senate Democratic Leader Steve Geller, of Cooper City.
The Legislature has legally challenged Crist's authority to enter an agreement with the Seminoles that allows them to operate Las Vegas-style slot machines and certain card games, like blackjack and baccarat, at their seven casinos across the state. In exchange, Florida gets a minimum $100 million annual payback from the tribe.
Crist has argued that the Legislature had an opportunity to act on the compact if it wanted to, but never did.
The high court has not yet ruled on the case.
The committee also approved a measure to expand electronic gaming to all pari-mutuel facilities in the state — a move that, if approved by the full Legislature, could end any payments to the state from tribal gaming.
The compact negotiated by Crist provides that the Seminoles have exclusive rights to expanded gambling outside Broward and Miami-Dade counties, where voters have approved slots. If the state allows new gaming outside those areas, the compact provides that the Seminoles won't owe the state a dime. "The Legislature has the right to do this, if it wants to," said Barry Richard, a lawyer for the Seminoles. "But the tribe would no longer have an obligation to make any payments."
Proponents of allowing video lottery in 20 pari-mutuel facilities across the state, including the Palm Beach Kennel Club, contend it will raise more than $300 million a year for schools — money much needed during the state's current cash crunch. Because of the lagging economy, lawmakers are likely to trim $300 million to $600 million from the current state budget and up to $2 billion from the state budget that will take effect on July 1.
"Our citizens are looking for more gaming opportunities," said Sen. Dennis Jones, R-Seminole, the committee chair. "This is an opportunity to protect the [pari-mutuel] industry, while letting our citizens go to a place that is safe and regulated. And there is a payback for Florida."