Demanding a bigger seat at the table that may make up Floridas future gaming establishment, pari-mutuel owners in South Florida want their tax rates and existing restrictions put on par with the mega-casinos proposed in bills before state legislators.
We believe in giving all the casinos the tools needed to compete so that the state can get the most that it can out of the industry, Donn Mitchell, Isle of Capri in Pompano Beach chief administrative officer told members of the Senate Regulated Industries Committee on Wednesday.
That means full parity for the existing South Florida casinos with the new resorts, Mitchell added. There is no need within this existing legislation to eliminate jobs and significant tax revenues that are already here.
By creating a level playing field, the pari-mutuels want what has been proposed for a trio of 5-star resorts: 24-hour gaming; Las Vegas-style table games; being able to provide free drinks to players; the ability to offer credit to customers; and, most importantly, to have a tax rate that is on par with what has been proposed for the new facilities.
Without such changes, the pari-mutuels will continue to side with outfits such as the Florida Chamber of Commerce and Disney that are opposed to the bill now before the Legislature.
In addition to the three casinos being allowed in counties where slots are legalized, the bill would establish a gaming commission to regulate existing pari-mutuels, Internet cafes and other nontribal gaming venues. The bill also maintains the 35 percent tax revenue requirement for the pari-mutuels while requiring the new mega-resorts to pay the state 10 percent of their revenue.
The Florida Seminoles, also opposed to the bill, currently pay the state more than $250 million a year through a 20-year compact that could be cut in half or nullified depending upon where the three proposed casinos are located.
Mitchell says the 5-star resort casinos would cut into the Seminoles business, and the tribe would in turn focus on cannibalizing customers from the pari-mutuels, which would be further at a disadvantage as the Seminoles are expected to open up their gaming options as the compact is altered.
Our primary competitor, who will remain our primary competitor, 5 miles away, is going to have an even greater competitive advantage over us, Mitchell added.
The Senate committee held the first workshop Wednesday on SB 710, by Sen. Ellyn Bogdanoff, R-Fort Lauderdale, hearing from representatives from existing pari-mutuels and casino giants including Malaysias Genting, MGM Resorts and Las Vegas Sands, which are poised to put up the $2 billion required to build a gaming resort.
A companion bill, HB 487, has been filed by Rep. Erik Fresen, R-Miami.
No vote was taken on the bill.
Committee Chairman Sen. Dennis Jones, R-Seminole, said he expects the committee to vote on the bill, after expected modifications, the first week of the regular session in January.
Bogdanoff said the bill is aimed at regulating gaming, not restricting or expanding what is now offered, and attracting more business and jobs to Florida.
The goal here is to reform gaming, she said. If we cant shut it down -- which would obviously be my preference, Ive said it over and over again -- wed have to repeal the lottery and that is not going to happen.
Bogdanoff said the intent was also to allow the three casinos to operate in just Miami-Dade and Broward counties, where slot machines are already offered.
However, since the bill was crafted, the potential locations for the resorts have spread as Gadsden and Palm Beach counties have moved -- through a loophole in state law -- on asking voters to approve slot machines at resorts. Other counties are now considering such options.
Outside the seven Seminole resorts, there are five pari-mutuels that offer a limited number of slots and card games in South Florida: Isle Casino in Pompano Park, Calder Casino & Race Course of Churchill Downs, Magic City Casino at Flagler Dog Track, Mardi Gras Casino in Hollywood, and Gulfstream Park Casino.
Isle Casino in the past year paid $45 million in gaming taxes to the state and $5 million in city and county taxes, Mitchell said.
The legislation that is proposed before us right now is going to tie our other hand behind our back, said Mitchell.
He considers the current setup with the Seminole compact -- which allows the tribes resorts to offer table games that remain prohibited at the pari-mutuels -- as already putting the pari-mutuels at a disadvantage.
The pari-mutuels are also limited to 2,000 gaming stations per location, while the Seminoles can have an unlimited number, something that would also be allowed for the three mega-resorts.
Bogdanoff said the idea for the gaming commission is to regulate the existing games of chance -- including the Florida lottery but not the Seminole resorts -- now offered in the state.
Separate bills have been introduced to regulate Internet cafes and prohibit the nearly 1,000 arcades in the state.
The proposed seven-member commission, which would be exempt from certain aspects of the state Sunshine Law, would be appointed by the governor.
Each commissioner would be paid $125,000 a year, with the chairman, appointed by the governor, getting $135,000.
Strict limits would be placed on who can serve on the commission, including a ban on anyone who has a personal or financial relationship with any of the applicants or anyone who has been under indictment or charged with a gambling violation or fraud, Bogdanoff said.
Colin Au, president of Genting Americas, painted a picture that a Genting casino on bayfront land already purchased would create 50,000 construction jobs, 19,000 full-time jobs and 81,000 additional jobs directly and indirectly.
Au bluntly said reports that the majority of jobs would go to people from Las Vegas and Atlantic City are bulls***, as were projections that the casino would take away business from existing tourist attractions in the state.
The majority of positions would go to minorities from the Overtown, Little Haiti and Little Havana communities of Miami, he said.
He added that if Genting didnt reach benchmarks the state sets in terms of employment or revenue, the commission could cancel the casino's license.
After we spend $3 billion and we dont deliver what we are saying, 19,000 jobs, just cancel the license," Au said. "Its very simple.
Reach Jim Turner at jturner@sunshinestatenews.com or at (850) 727-0859 or (772) 215-9889.
