Panel tries to restrict slots
A state House committee attempted to limit expansion of gambling by allowing only bingo-style electronic gaming machines in Broward, instead of traditional, higher-stakes slot machines.
By Mary Ellen Klas
meklas@herald.com
© 2005 Miami Herald
Saturday, April 02, 2005
TALLAHASSEE - Broward County's new slot machines would operate like electronic bingo games instead of the traditional Las Vegas equipment under a bill approved Thursday by a sharply divided House committee.
The measure, included in a sweeping bill that writes the rules for Florida's slot machines, passed by a 10-9 vote of the House Business Regulation Committee..
By limiting slot machines to the Class II gambling now played at Indian gaming halls, the state is in a better position to limit the expansion of gambling on Miccosukee and Seminole reservations, said Rep. Juan Zapata, a Miami Republican who sponsored the amendment to the bill..
The bingo-like machines look like electronic slot machines, but they allow players to challenge each other rather than the house. They are expected to raise two-thirds of the potential revenue of the higher-stakes Las Vegas-style machines for the parimutuel owners who will operate them, Zapata said..
Gov. Jeb Bush and House leaders support the move to classify slot machines as Class II equipment, because that classification limits the expansion of gambling and gives the state better leverage when it is compelled to enter into negotiations with Indian tribes that want to get Class III gaming -- including blackjack, roulette and craps..
But opponents say the House plan betrays Broward County voters -- who approved allowing slots at the county's four parimutuel facilities in a March 8 referendum -- and goes against the intent of voters statewide who thought they were allowing the counties to authorize full-fledged slot machines..
''You have to give the voters what they want,'' said Rep. Susan Goldstein, a Weston Republican. ``They didn't ask for bingo machines. They asked for slot machines.''.
The measure barely passed the committee: House leaders had to summon Rep. Marco Rubio, the House's policy and procedures chairman, to the hearing to break a potential tie vote..
Supporters of the slots initiative said they were discouraged by the House committee's vote but vowed to change it as it moves through two more committees..
''This bill benefits the tribes more than it benefits us,'' said Ron Book, lobbyist for Flagler Dog Track and a coalition of dog and horse tracks and jai-alai fronton owners. ``But it's a work in progress. We will continue to work for a fair bill.''.
The decision over slot equipment isn't the only provision in the House bill that the industry dislikes. The proposal includes a sliding tax rate that would range from 35 percent to 45 percent, depending on how many machines a facility installs. Facilities would be allowed no more than 3,000 machines each, and those that have fewer machines would be taxed less than those with more..
Broward County schools would receive $1,500 in annual income from each machine that a parimutuel installs, and the state would receive $2.5 million in start-up licensing fees from each parimutuel for regulation and oversight..
Broward's four facilities could operate up to 14 hours a day weekdays and around-the-clock on weekends..
After an hour of deliberation, the debate over regulating the industry erupted into a bitter fight with the horse tracks and breeders facing off against the jai-alai and dog track operators over a plan to pool their purses..
Thoroughbred owners said they joined the parimutuel coalition in October with the understanding that parimutuels would pool their purse money and give a greater share in prizes to the horses, whose training and breeding expenses are greater..
Their goal, they said, is to increase the prize winnings to draw higher-quality horses and to be more competitive against tracks in other states. Dog and jai-alai owners, however, said they want to keep their own purse money..
Rep. Thad Altman, a Melbourne Republican, tried to resolve the dispute but withdrew his proposal when he didn't have the votes..