County-level voters across Florida would get to decide if they want to expand gambling in their community -- from slot machines to mega-casinos -- under changes proposed to the highly watched destination gaming bill now before state legislators.
Sen. Ellyn Bogdanoff, R-Fort Lauderdale, is expected to amend her 166-page destination gaming bill by the end of the week that would:
- Subject casinos, valued at $2 billion each, in Miami-Dade and Broward counties, to voter approval.
- Seek to close the 1,000 Internet cafes that have opened with little regulation throughout the state by prohibiting simulated gambling devices and simulated gambling displays that are used to offer sweepstake, bingo, raffle or other prizes instead of cash.
- Allow existing pari-mutuel facilities in Florida to offer slot machines and table games, if approved by county voters. The pari-mutuel would also have to invest at least $100 million on the facility within three years of receiving a limited gaming license.
- Reduce the tax rate on slot machine revenue at pari-mutuels from 35 percent to 18 percent.
- Prohibit new jai alai frontons and racetracks from opening after July 1. The state would have to buy back existing but dormant permits that have been approved.
- Prohibit barrel racing at all but the existing Gretna Racing facility west of Tallahassee where the licensed races started in December. Even there, by July 2013 the voters of Gadsden County would have to agree to keep the races.
- Create a seven-member Florida Gaming Commission, located in Leon County, with members paid $125,000 a year. The chair would receive $135,000.Appointed by the governor, each member would serve four-year terms. To create staggered terms, three members of the first board would receive two-year terms.
- The changes would, by omission, maintain the Florida lottery as a separate entity. Bogdanoff had previously suggested moving the department under the umbrella of the commission.
Bogdanoff has asked members of the Senate Regulated Industries Committee to comment on the changes.The committee has held two meetings on the bill and is expected to take a vote on the proposal shortly after the regular legislative session begins on Jan. 10.
I believe this strikes a balance, Bogdanoff stated in the letter to the committee. I have tried to address our existing businesses, shut down loopholes, substantially reduce the number of locations that offer gaming, and shift the type of gaming to attract international tourists and provide increased economic development through conventions, trade shows and international tourists.
Last but not least, you will note that every form of gaming in every county will require a referendum, she added. Those that argue that the public does or does not want gaming ... the public will have the last word.
Bogdanoffs bill, SB 710, initially proposed establishing a statewide gaming commission and allowing the construction of three mega-casinos that would be required to pay 10 percent of revenue to the state.
The bill has received criticism from members of the committee for failing to tackle growing Internet cafe businesses, where sweepstakes are offered as substitutes for cash prizes, and complaints from existing pari-mutuel operators that pay 35 percent of their revenue to the state.
The bill, with its House companion HB 487, sponsored by Rep. Erik Fresen, R-Miami, is also opposed by large sectors of the business community, including Disney, the Florida Chamber of Commerce, and the Florida Seminoles.
The tribe has a compact with the state that limits gaming options the Seminoles can offer at casinos in Florida, while paying at least $250 million to the state in exchange for the state limiting where slot machines and other Las Vegas-style games are allowed.
Senate President Mike Haridopolos, R-Merritt Island, has said on several occasions he wants to bring the issue up for a floor vote. Meanwhile, House Speaker Dean Cannon, R-Winter Park, said the bill may have a tough time finding floor time.
The fact that there are only two bills that we have to pass this year, and theyre both complex, the budget and redistricting, I think those two are going to suck a lot of oxygen from the room, Cannon said during a pre-holiday interview with Sunshine State News. So, I think those forces combined make it a long shot.
From Bogdanoffs office:
Differences Between Proposed Strike-All to SB 710 and SB 710:
1. Removed promotional credits from being exempt from gaming revenue/gross receipts calculation that is taxed. (Requires promotional credits to be taxed, removing tax-free enticements to gambling.)
Removed from bill.
2. Exemptions from s 120 for the issuance and denial of licensure have been removed.
Removed from bill.
3. Removed the allowance of bookmaking.
Removed from bill.
4. Clarifies that the department has authority over the various provisions in Ch. (Chapter) 849; however, it does not require a license for penny-ante poker, arcades, bingo (etc.) not currently licensed, except for the sweepstakes parlors.
Removes Section 43 from the bill.
References Ch. 849 on lines: 73, 103, 108, 112, 115, 130.
5. Removes the requirement that the annual lottery audit make recommendations to enhance the earning capability of the state lottery
Line: 168.
6. Exemption from s. (section) 120.541(3) for rulemaking has been inserted, which would have otherwise required certain rules of the commission to be ratified by the Legislature.
Lines: 234-235.
7. Headquarters in Leon County (must choose a location for the purposes of court challenges).
Lines: 380-381.
8. Executive director appointed by chair and removed by majority vote of the commission.
Lines: 482-518.
9. Resort location -- Allows each county to call a referendum to allow for a resort license in that county.
a. Deletes exemption on referendum for counties that have previously passed a slot machine referendum and authorizes every county to call a referendum to allow a destination resort in that county.
Lines: 893-896, 1,314-1,318.
b. Requires the voters of a county to approve a referendum prior to the application deadline before the commission is allowed to issue a license for a destination resort in that county.
Lines: 1,648-1,651.
10. Rule-making authorization was expanded to ensure that adequate rules are in place regarding, among other things, table game operations, employee training, and count room security.
Lines: 1,145-1,300.
a. Provides that the department has rule-making authority over internal components of devices, including the placement of random number generators in slot machines (per DOHA [Department of Administrative Hearings] decision).
Lines: 1,176-1,179.
11. Contains a provision that requires a destination resort to segregate the casino area so that a person could visit the resort without entering the casino.
Lines: 1,327-1,331, 1,902-1,918, 2,019-2,022.
12. Provides flexibility to the commission on timelines.
Lines: 1,360-1,365.
13. Clarifies that the commission may restart the bid process for a destination resort license if less than three licenses are awarded in the first process -- provides flexibility to the commission. No more than three destination resorts may be issued in total.
Lines: 1,366-1,372.
14. Clarifies that the $2 billion minimum investment for destination resorts includes gaming equipment and furnishings but does not include any impact fees or property costs.
Lines: 1,418-1,427.
15. Requires the commission to consider each resort licensee's plans to integrate with the surrounding community, including the resorts plan to work with surrounding restaurants and attractions.
Lines: 1,437-1,508.
16. Licensing fee increased from $50 million to $125 million (this is a one-time fee).
Line: 1,715.
17. Requires the department to purchase up to four active pari-mutuel permits with part of the $125 million license fee, void the permit, and donate the land to the municipality for public use (reduces the total number of active pari-mutuel permits around the state).
Lines: 1,722-1,753.
18. Requires the resort licensee to report suspicious activity at the facility to the department or law enforcement, as appropriate.
Lines: 2,112-2,114.
19. Crimes -- Creates s. 551.317 related to prohibited acts. Contains prohibitions against cheating, deceiving, and using counterfeit equipment or devices. Violations are first-degree misdemeanors and subsequent violations are third-degree felonies.
Lines: 2,140-2,250.
20. Annual license fee increased from $2 million to $5 million (for resort licensees).
Lines: 2,256-2,257.
21. Increases the tax rate for resort licensees from 10 percent to 18 percent.
Line: 2,270.
22. Distribution of revenue from 18 percent tax on gross receipts.
Lines: 2,273-2,297.
a. 97.5 percent of all tax revenues shall be deposited to the General Revenue Fund.
Line: 2,274-2,275.
b. 2 percent of all tax revenues collected shall be paid to the Florida Thoroughbred Breeders and Owners Association.
Lines: 2,276-2,293.
c. One-half percent of all tax revenues collected shall be deposited to the Veterans Trust Fund.
Lines: 2,294-2,297.
23. All revenues deposited in the Destination Resort Trust Fund (primarily license fees) will be swept annually, except $10 million will be left in the fund to cover operating expenses.
Lines: 2,312-2,318.
24. Requires manufacturers of gaming equipment to obtain a license from the commission.
Lines: 2,468-2,583.
25. Compulsive gambling -- Provides that all resort licensees, limited gaming licensees, and slot racino licensees must pay 0.25 percent of the gross revenues generated at the facility to the department for the use of compulsive gambling programs. The department must contract for direct services for the treatment of compulsive or addictive gambling. (No longer a set $250,000 per licensee.)
Lines: 2,790-2,810, 4,112-4,143.
26. Increases the alcohol license fee from $50,000 to $250,000 for destination resorts.
Line: 2,986.
27. Crimes -- Amended s. 817.32 and 817.33 (fraud related to coin-operated devices) to include devices that accept other forms of compensation or that may be activated by a ticket, token, or other object.
Lines: 3,043-3,096.
28. Definitions for pari-mutuel racing types have been inserted (closes the loophole that allowed barrel racing to be authorized at Gretna quarter horse facility).
Lines: 3,243-3,307.
a. Allows Gretna to continue barrel racing if Gadsden County approves barrel racing in a county referendum. No other barrel racing is allowed to operate in the state.
Lines: 3,609-3,625.
29. Prohibits any new pari-mutuel permit from being issued after July 1. (Prevents additional pari-mutuel permits from being issued -- stops expansion of pari-mutuel gaming.)
Lines: 3,409-3,414.
30. Repeals s. 550.0745, F.S., which created summer jai alai permits in certain areas (closes loophole for additional permits to be issued).
Lines: 3,415-3,416.
31. All inactive pari-mutuel permits (revert) to the state on the effective date of the bill -- all permits (revert) to the state for failure to pay taxes in any one fiscal year.
Lines: 3,417-3,503.
32. Parity -- Provides for various forms of parity, depending on the will of the voters in that county.
a. Tax rate of 18 percent for slot machine licensees.
Line: 3,946.
b. Allows any pari-mutuel facility to pass a referendum (no later than Dec. 14, 2014) to obtain slot machine gaming at its facility.
Lines: 3,659-3,666, 3,883-3,888.
c. In the alternative, any pari-mutuel facility can pass a referendum (no later than Dec. 14, 2014) to obtain a license to conduct limited gaming (same games and same regulations as a destination resort). In order to qualify, the pari-mutuel facility must pass the referendum and must invest a minimum of $100 million in the pari-mutuel facility after the effective date of this act, but no later than three years after initial licensure.
Lines: 1,836-1,922.
33. Electronic game promotions and electronic drawings by chance are prohibited (stops sweepstakes cafes) -- definition also modifies slot machine definition to include a network of computers or devices (what are commonly used in Internet cafes).
Lines: 4,267-4,736.
34. Collection of debts -- Requires licensees to submit winnings to the department for repayment of outstanding debts.
Lines: 4,743-4,781.
35. Ballot question language is included in the amendment.
Lines: 4,782-4,793.
Reach Jim Turner at jturner@sunshinestatenews.com or (772) 215-9889.
