The Seminole casino compact will help South Florida's horse tracks, but, as expected,hobbles pari-mutuel facilities elsewhere around the state, industry insiders say.
"It gives us the opportunity to compete at a higher level and pass on some of that tax reduction to the customer," said Ken Dunn, president and general manager at Gulfstream Park in Hallandale Beach.
In addition to granting the Seminole tribe the right to deal blackjack and offer Las Vegas-style slot machines, the compact expands card-room hours around the clock on weekends and for the first time allows no-limit poker at South Florida's tracks.
But tracks outside Miami and Broward counties were left out of the deal. That will hurt operations like Tampa Bay Downs, says Dick Hancock, vice president of the Florida Thoroughbred Breeders' and Owners' Association.
"We're very disappointed in pari-mutuel laws that could have helped Tampa Bay Downs. We will have to take a look at it next year," he said.
Carey Theil, executive director of GREY2K USA, a Somerville, Mass.-based group that lobbies "to end the cruelty of dog-racing nationwide," agreed that "the compact is a negative for tracks outside South Florida."
"The tracks in South Florida were grandfathered in on slots, and got a huge tax cut. That's a good thing for them, but it effectively prohibits gaming outside of South Florida forever," Theil said.
Dunn said the tax-rate reduction from 50 percent to 35 percent will help non-tribal operators better compete with Seminole gaming. He noted that several venues have room to expand their slot and table action.
Currently, Gulfstream's casino has 847 slot machines. Other tracks -- including Mardi Gras, Calder, Flagler and Pompano Park -- range from 770 to 1,500 machines.
By law, each is allowed up to 2,000 slots.
Isle of Capri, owner of Pompano Park, was "pleased that the Legislature supports the commercial casinos in Broward County by taking steps to level the playing field through tax rate changes and expanded poker room hours," said Jill Haynes, spokeswoman for the St. Louis-based gaming company.
Haynes declined to divulge any expansion plans in South Florida.
Gulfstream, meanwhile, continues to diversify its entertainment offerings under its newly constituted owner, Magna International Development.
Dunn said the 42-acre Villages at Gulfstream Park is 85 percent leased, with restaurants and retail anchors to complement the track and gaming facilities.
The expanding mix is attracting more casino action, said Dunn, who reported that Gulfstream's slot revenues were up 17 percent in the first quarter over the first quarter of 2009.
Both Dunn and Hancock say that the tax reductions under the compact will help horse-racing.
"The decrease in taxes will have a major (positive) effect on purses," Hancock said.
Dunn added that the decrease in taxes translates into increases in percentages for horsemen.
"Higher purses bring better riders, top trainers and the country's top horses. That gives us a better product to sell here and internationally," Dunn said.
While South Florida's track operators are generally optimistic about the compact's effects, they say the Seminole deal did not completely level the playing field with the tribe, which gained exclusive rights to deal blackjack and offer Las Vegas-style slots.
Even after paying out a projected $1.2 billion to the state over five years, the Seminoles' "real tax rate is around 10 percent," Dunn estimates.
"Add in all the taxes we pay and our margin is around 36 percent," he said.
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Reach Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
