Panning for fool's gold
Putting casinos on Florida's beaches won't solve
the state's budget and economic problems.

An Editorial
Copyright © 2010, Orlando Sentinel
Sunday, February 14, 2010

They're pressing the panic button in Tallahassee. Staring into another multibillion-dollar budget hole, with no easy way to fill it, some state lawmakers say it's high time Florida began cashing in on beachside or state-run casinos.

State Rep. Ellyn Bogdanoff, a Fort Lauderdale Republican who once campaigned against expanding slot machines in South Florida, is now promoting legislation intended to lure gambling developers to build beachside hotel-casinos.

State Rep. Alan Hays, a Umatilla Republican and another reformed gambling opponent, now says he wants the state to own casinos and hire private operators so that it can claim more of the profits.

What's gotten into the water in the state capital?

Casino boosters argue that gambling already is everywhere in Florida. The state runs a lottery, licenses horse tracks and other pari-mutuels — some with slot machines — and allows charitable gambling.

And it's true that Gov. Charlie Crist has been trying to persuade lawmakers to approve a gambling deal that would give the state a share of the Seminole Indian tribe's profits from gambling. The Seminoles run seven of eight Native American casinos in the state.

But before legislators get too intoxicated by the prospect of a painless solution to the state's budget woes, there are some sobering facts to consider.

Last year, state and local revenues from gambling across the nation fell for the first time in more than three decades, according to the Rockefeller Institute, an independent think tank. This includes a 1.3 percent dip in Florida. The decline is a clear indication that gambling is not recession-proof, and a pretty good sign that the market could be approaching saturation.

And if Florida were to legalize casinos, it would arrive late to a party that already includes 15 states. It's a stretch to argue that visitors would flood the state just to gamble, when many can stay home or drive to a neighboring state.

Casinos haven't been the salvation for money-strapped state governments. Of the 15 that allow them, 14 are now facing budget deficits, according to the Center on Budget and Policy Priorities. This includes Nevada and New Jersey, the two trailblazers in legalizing casino gambling.

We have been open to pari-mutuels, such as the Sanford Orlando Kennel Club, adding a poker room to a gambling location that has been operating for decades. That's a long way from recasting the state's entire image by putting casinos on the beach.

Florida already depends too heavily on tourism and other low-wage industries. To build the state's economy and stabilize its budget, lawmakers need to step up their focus on high-wage fields like medical research and aerospace manufacturing, and back off on separating people from their money through gambling.

It's telling that when Florida TaxWatch, the respected budget think tank from Tallahassee, presented its recommendations for expanding the state's economy at a jobs summit called by legislative leaders, it didn't mention gambling. Instead, it suggested ideas like tax reform, greater investments in higher education and upgrades to the state's ports. Crazy stuff.

Casinos are a get-rich-quick scheme for state government, much like opening waters within five miles of Florida shores to drilling for oil and gas. They're a cop-out for lawmakers who don't want to face up to the hard choices on spending and taxes needed to solve the state's budget problems.

The sooner they stop ducking those responsibilities, the better off Florida will be.