Gambling: Bush's letter slams slots drive
Gov. Bush sent a letter to the Christian Coalition of South Florida decrying the gambling industry's campaign tactics in a push to have slot machines approved. It also warns of even more gambling expansion.

By: Lesley Clark
lclark@herald.com
© 2005 Miami Herald
Friday, Feb. 25, 2005

Gov. Jeb Bush is blasting the campaign for slot machines in South Florida for seducing voters with a ''hollow promise'' for better schools, and warning of an ``industry-led drive toward Las Vegas-style casino development.''

In his starkest terms yet, Bush, a staunch gambling opponent, wrote in a letter to the Christian Coalition of South Florida that passing the March 8 referendum in Broward and Miami-Dade counties would create a ''snowball effect,'' leading to casinos across the state.

Gambling opponents are seizing on the letter from the state's chief executive -- who has the power to veto any legislation regulating the slot machines -- as a weapon against the industry-financed campaign that wants to bring slots to seven racetracks and jai-alai frontons in the two counties.

''We're sending this letter around to the churches, faxing it and e-mailing it and talking about it,'' David Zachary, operations director for the coalition, said Thursday. ``We're showing people that we have the governor on our side.''

Bush's office did not immediately return calls seeking comment.

In the letter, Bush wrote that adding slots to the parimutuels would force him to negotiate with two Florida Indian tribes who already operate casinos in the state. The tribes claim the right under federal law to operate any sort of gambling that the state allows.

The parimutuels would then look to top the Indian casinos -- which don't have to pay state taxes, Bush noted. 'Thus we are likely to hear from the parimutuel industry that they need more slots, bigger casinos and more locations to `compete' in the near future against the native American tribes,'' the governor wrote.

The governor's former education commissioner, Jim Horne, who has been hired by the coalition of horse and dog tracks and jai-alai frontons, said he's more ''pragmatic'' about the issue than his former boss.

''Gambling is here and as long as it is, we ought to get something for it,'' Horne said.

Parimutuel operators point to the proliferation of the Indian casinos and ''cruises to nowhere'' that pay little or no state taxes and argue that state-regulated and taxed slot machines could mean a $500 million boon for schools.

But in the letter, Bush called the promises ''speculative'' and cited studies that found that casino gambling cannibalized other businesses and led to increased crime and higher unemployment rates.

Though voters are being asked to approve a major expansion of gambling, he wrote, ``details are elusive.''

If voters approve the slots initiative, the Florida Legislature would have until July 1 to write regulations governing the machines. Bush, who could veto that legislation, has said his approval would be contingent upon having safeguards for problem gamblers, money to offset the cost of growth, and guarantees that the facilities won't sell out to buyers who would bulldoze the tracks to build casinos.

Bush may have a more immediate way to exert control: His Secretary of State, Glenda Hood, has been asked to investigate the industry's involvement in financing the March 8 elections.

The industry has pledged money to the counties to pay for some of the expected costs of gambling, which will indirectly cover the cost of the special election -- a practice that's ''impermissible under state and local law,'' said Rep. Randy Johnson, an Orlando-area Republican who sought the investigation.

Slots attorney Lori Weems said the industry is not financing the election -- but paying the counties for expected costs like road building.

''The agreement was not a quid pro quo for the election, it was to get the county comfortable to move forward with the issue,'' Weems said.