TALLAHASSEE - Both the city of Hollywood and the Broward County School District were
written into legislation that regulates slot machines at four parimutuels, potentially giving the
two governments the windfall they've sought from the gambling industry.
With a dog track, a jai-alai fronton and a horse track on its borders -- but not within them --
Hollywood could experience some of the worst effects of bringing slot machines to the
county, the House Commerce committee agreed Thursday afternoon.
''I think it's extremely important, and I'll be extremely disappointed if we get a bill that goes
through the House, the Senate and to the governor that doesn't address social issues,'' said
the House sponsor of the bill, Rep. Frank Attkisson, a Kissimmee Republican.
Under the bill passed Thursday by the committee, the city of Hollywood would get one-half of
one percent of the gross revenues from the three parimutuels on its borders: Dania Jai-Alai,
Hollywood Greyhound Track and Gulfstream Park.
The amendment was sponsored by Rep. Ken Gottlieb, a Democrat who represents the city of
Hollywood.
FINAL BILL MAY DIFFER
But Hollywood and the school district haven't been written into the Senate version of the bill,
a more business-friendly proposal that parimutuel lobbyists have targeted as the working
legislation they want to go to the governor.
And that means the final legislation could be far different as it works its way through the
House and Senate.
''It is a work in progress,'' Attkisson admitted in front of the committee. ``It's not a perfect
product, but it is moving forward. My job is to put in a good bill I feel comfortable with, not
design an industry bill.''
The House committee added several other key amendments that are far more likely to stick
to the bill, including a provision that gives local law enforcement officials crime enforcement
power within the four facilities.
The bill also includes a provision that allows the state to upgrade to Class III slot machines if
the Indian tribes ever win approval for Las Vegas-style gambling.
City leaders in Hollywood, led mostly by Mayor Mara Giulianti, campaigned against slot
machines, in part because they complained that they weren't able to cut side deals with the
parimutuel business. Broward County and the three cities with parimutuels -- Dania Beach,
Hallandale Beach and Pompano Beach -- all negotiated for a small percentage of the gross
revenue from slot machines.
The school district would reap an annual tax of $1,500 per slot machine; each of the four
parimutuels could have up to 3,000 machines. The tax proceeds from slot machines -- after
winnings are paid out and casino owners take their cut -- are slated to go to education.
TOPICS UNADDRESSED
The committee refused to touch two controversial issues: the tax rate on the proceeds from
slot machines and the issue of purses, which determines how much money the tracks and
frontons contribute toward prize pools.
Horse tracks have argued that the dog track and jai-alai frontons should pool their purse
money and give a greater share in prizes to the horses, whose training and breeding
expenses are greater.
That way, track officials argue, they can increase the prize winnings to draw higher -quality
horses and better compete with tracks in other states. Dog and jai-alai owners counter that
they want to keep their own purse money and return it to their own purses.
The committee also didn't tinker with the tax rate, one of the pivotal issues.
The Senate version of the bill offers a sliding tax rate ranging from 30 percent to 35 percent
of proceeds from the machines, depending on how much money a parimutuel brings in from
slots.
The House proposal also has a sliding tax rate, but it ranges from 35 percent to 45 percent,
depending on how many machines are installed at a facility.
Until they determine the hours of operation and how many machines would be available, it is
difficult to determine a tax rate, Attkisson said. It's likely to be discussed in the next
committee stop before hitting the floor of the House, he said.
House panel OKs Broward slots bill
By Dara Kam
Special to The Palm Beach Post
Friday, April 15, 2005
TALLAHASSEE — Lawmakers in the House and Senate remain divided over whether to
allow traditional slot machines in Broward County or try to stave off the expansion of
gambling by limiting the machines to the video bingo-type terminals already in play at tribal
casinos.
A House Commerce panel unanimously approved a minimally modified version of its bill (HB
1901) on Thursday, but many of the kinks have yet to be ironed out between the chambers,
including tax rates, licensing fees, hours of operation and a limit on the number of machines,
if any.
The most significant disparity remains the schism over the type of machines, with gambling
proponents pushing for the Las Vegas-style slot machines that earn up to 50 percent more
per day than their video bingo counterparts.
Committee members, led by Rep. Frank Farkas, R-St. Petersburg, continuously rejected
attempts by Rep. Randy Johnson — a Celebration Republican who has strenuously opposed
the slot machines — to weaken the measure, limit the hours of operation and raise the tax
rates and licensing fees.
"We're not here today to decide whether we're pro-gaming or anti-gaming," said Rep. Frank
Atkisson, R-Kissimmee, the bill's House sponsor. "We're here to decide how to implement
Amendment Four."
Johnson did succeed in raising the minimum age to 21 to play the video bingo machines, but
that could create a problem for parimutuel operators who allow 18-year-olds to place bets.
In addition, Hollywood Democrat Rep. Ken Gottlieb persuaded the committee to give
Hollywood a one-half of 1 percent cut of the revenue from the new machines in order to
offset social costs of the gambling because three parimutuels are located in the city or
adjacent to it.
The Hollywood city line is across the street from the Hollywood Dog Track, and the Dania
Jai Alai Fronton and Gulfstream Racetrack both border the city.
Just a handful of the more than dozen amendments filed by Johnson were approved, and four
remained to be heard when Farkas, chairman of the committee, said it was time for a vote.
"Mr. Chairman, may I speak?" inquired Johnson.
"No, you may not," Farkas said.
The bill heads next week to the House Fiscal committee.