Gambling industry deceiving public about job creation, slot machine foes say

By Scott Wyman & Chris Kahn
Staff writers
Copyright © 2005, South Florida Sun-Sentinel
Thursday, February 24, 2005


The seven race tracks and jai-alai frontons that would be allowed to install slots if voters agree have planned their second job fair for today, saying they are seeking applicants for 18,000 new jobs. The critics say the jobs are far from guaranteed and that job-seekers are being exploited in hopes of winning votes.

The prospect of new jobs, with an average salary of more than $39,000, has become a key facet of the campaign to persuade voters in Broward and Miami-Dade counties to expand gambling. The industry argues half the jobs would be at the casinos and the other half would be created in other businesses through a boost to the local economy.

"They'll promise whatever it takes to win because all that stands between them and billions of dollars in profits is people voting yes," said Paul Seago, a leader of No Casinos.

Referendum supporters insist the job fairs are real and that their projections are based on economic analyses of gambling elsewhere in the country. At the same time, they acknowledge they are encouraging people who attend the job fairs to vote yes.

"It's an excellent way to reach out to people who see it as a benefit," said Stacey Brenan, spokeswoman for the pro-gambling Yes for Better Schools and Jobs. "There are thousands of people who need jobs."

If voters approve the referendum, the seven pari-mutuel sites could begin to install thousands of slot machines as early as this summer. The state Legislature, though, has not decided how the gambling would be regulated, what the tax rate would be or how the tax revenue would be directed to education, as promised.

The job fair will take place today from 10 a.m. to 6 p.m. and Friday from 9 a.m. to 4 p.m. at the Pompano Park Harness Track.

According to the gambling industry's economic studies, 4,646 full- and part-time jobs would be created at Broward's pari-mutuel sites and there would be 5,533 new jobs at Miami-Dade's in the first full year of operation. The average salary of the jobs at the tracks and those indirectly created would be $41,650 in Broward and $36,200 in Miami-Dade, the studies say.

The analysis argues the new employment represents a major economic boost because about 44,000 jobs are created in the two counties in an average year. The studies were conducted by Miami-based economic consultant Robert Cruz and Innovation Group, a casino consulting firm out of New Orleans.

Slot foes argue the figures are based on many assumptions, including that the tax rate will not be higher than the national average and that people will wager $10 billion a year. Each site also would have to be larger than the Seminole Hard Rock Hotel & Casino.

Broward Mayor Kristin Jacobs sees the promised number of jobs and level of wages as unrealistic, considering most of the jobs are in the service industry. Seago agrees, citing gambling industry articles that report the average salary for casino jobs is $27,000 to $29,000.

"This is Eploitation 101," Jacobs said. "They exploit children to sell their initiative. They exploit workers to sell their initiative. To what level will they sink?"

While the debate rages, Stephanie Kraft, the chairwoman of Broward's School Board, is trying to persuade the gambling industry to return to the negotiating table to work out a deal guaranteeing money to local schools. Kraft has opposed the referendum, but said she will offer an endorsement in exchange for an annual contract worth $75 per student. Negotiations fell through earlier, but an industry representative met with her Wednesday and promised to take the suggestion back to his colleagues.