House bill pared-down version of Senate proposal for Vegas-style slots

By Linda Kleindienst
Tallahassee Bureau Chief
Copyright © 2005, South Florida Sun-Sentinel
Tuesday, April 6, 2005

TALLAHASSEE · Broward County voters asked for Las Vegas-style slot machines and that's what the state should give them -- even if it takes another year for the Legislature to do it, a key Senate leader said Tuesday.

Regulated Industries Committee Chairman Dennis Jones dismissed a call by the House and Gov. Jeb Bush to restrict Broward's pari-mutuels to offering the same electronic bingo machines now used in the state's Indian casinos.

"The constitutional amendment clearly says they were voting on slot machines," said Jones, R-Seminole. "Nowhere did it say bingo or video machines. The governor or House just dreamed that up."

In a move applauded by Broward pari-mutuels, Jones' Senate committee on Tuesday approved a bill that calls for Class III gaming, sets a maximum 35 percent tax rate and lets the machines operate for 16 hours a day, seven days a week.

"These are going to be entertainment centers and this bill is built to help them be successful," Jones said. "If we can't work out our differences this year, we'll work them out next year."

The 6-2 vote by the Regulated Industries Committee sets the stage for a legislative battle that will focus primarily on taxes and the types of machines that will be allowed at Gulfstream Park in Hallandale Beach, Hollywood Greyhound, Dania Jai-Alai and Pompano Park Harness Track.

While the tax rate in the Senate bill (SB 1174) ranges from 30 to 35 percent, depending on how much money the machines generate, the House bill (HB 1901) sets a rate between 35 and 45 percent, based on the number of machines. The House bill caps each facility at 3,000 machines while the Senate bill sets no limit.

The House bill also calls for Class II gaming, or electronic bingo, which pari-mutuel interests claim will raise far less money for their business and for education while providing smaller payouts for bettors.

"The Senate bill is a very good business plan ... and it will allow us to produce what we promised the people," said Dan Adkins, vice president of Hollywood Greyhound and a leader in the slots drive. "There is no question the people knew what they were voting for."

Jones said he expects the Senate to remain staunch in its call for Class III gaming, and that's exactly what Pompano Harness patron Andrew Paulucci wants to hear.

"I think when voters voted for slots they voted for Las Vegas-style slots," Paulucci, 81, of Pompano Beach, said Tuesday. "I know that was the will of the people."

Paulucci, an experienced Atlantic City slots player, said he prefers Class III slots because they seem to pay out better than the electronic Class II slots.

Stephen Bain, 60, of Deerfield Beach, called Class II slots "terrible," saying he has no desire to play them.

"The Republicans are trying to do the minimum -- minimum hours [of operation] and minimum number of machines," Bain said. "No one wants Class II slots if possible."

And Debbie McCollim, 52, of Coral Springs, said the Legislature needs to respect the wishes of Broward County voters and allow Class III slots.

"I think it's ridiculous," McCollim said of the House proposal. "Why did we vote if they are going to do that?"

House Speaker Allan Bense said he wants the Legislature to act because the constitutional amendment calls for a July 1 implementation date and he would like to avoid the issue going to court.

"I'm sure there will be plenty of debate and plenty more twists and turns that bill will have," said Bense, R-Panama City.

The Senate slots bill passed with no debate, few amendments and only brief public testimony.

"We would like to see you limit the impact as much as possible. Limit the number of days, the hours, the number of machines," said Davie Mayor Tom Truex. "It's no secret this was crafted to maximize the profit to the industry and limit money for education. And that's upside down."

But Hallandale Beach City Commissioner Joe Gibbons and Broward County Commissioner Ilene Lieberman said the Senate bill is the far better of the two measures under consideration.

"We don't look at this as a gambling issue but as an economic development issue," Gibbons told the committee. "We voted for slot machines. Nowhere did we see we were voting for bingo machines."

Both bills must work their way through more committees before they make it to the House and Senate floor for a vote. After that, the House and Senate will have to work out their differences before the Legislature's scheduled May 6 adjournment.

Staff Writers Jon Burstein and Mark Hollis contributed to this report.

Linda Kleindienst can be reached at lkleindienst@sun-sentinel.com or 850-224-6214.
Senate approves plan to allow Las Vegas-style slots

By Jackie Hallifax
Associated Press
© 2005 AP Wire
Tuesday, April 05. 2005

TALLAHASSEE, Fla. - Three tracks and a jai-alai fronton in Broward County could install as many slot machines as they want and run them 16 hours a day, 365 days a year under a bill approved by a Senate panel Tuesday.

The bill, which would allow Las Vegas-style slot machines, was approved 6-3 by the Regulated Industries Committee. Last week, a House committee approved a bill that would limit the four pari-mutuels to the kind of electronic bingo machines now at Indian-run casinos.

The Senate plan would also tax slot machines at a lower rate than the House. Both proposals need approval from more committees before coming up for full chamber votes.

Attorney General Charlie Crist has issued an advisory opinion that slot machines can't be installed without regulation approved by the Legislature, despite some arguments that the constitutional amendment allowing slot machines was self-executing.

The amendment approved in November permitted slot machines in Miami-Dade and Broward counties. Miami-Dade voters later rejected the proposal.

A former Broward County mayor who supports gambling, Ilene Lieberman, called the Senate bill a reasonable proposal that would produce money for schools. Gambling foes prefer the House bill.

Gambling opponents, including Gov. Jeb Bush, say limiting the gambling machines to electronic bingo might stop the expansion of full-fledged slot machines to other Indian casinos around the state.

Under federal law, tribes can negotiate to have any kind of gambling that a state allows. Both of Florida's tribes say they're entitled to the full-fledged slot machines that can be played in Las Vegas and Atlantic City.

Sen. Dennis Jones, R-Seminole and chairman of the Regulated Industries Committee, said he doesn't think the Senate would support anything less than Las Vegas-style slots.

The Senate plan (CS-SB 1174) would also tax slots on a scale ranging from 30 percent on revenue under $100 million, 32.5 percent on revenue between $100 million and $200 million and 35 percent above $200 million.

The House legislation (HB 1901) provides for a sliding scale ranging from 35 percent to 45 percent, depending on how many machines a facility installs. Facilities with 1,000 or fewer machines would be taxed at the low end; facilities that have between 1,000 and 2,000 machines would be taxed at 40 percent and facilities with up to 3,000 machines, the maximum under the bill, would be taxed at 45 percent.

Any tax collected from the slot machines will be earmarked for schools, according to the constitutional provision. The pari-mutuel industry promised that slots could raise hundreds of millions of dollars for education.

The House bill would allow the four facilities to be open for up to 14 hours during the week and around the clock on the weekend.