Saturday, November 04, 2006

For eight years, the state's growing gambling industry has faced a staunch
opponent in the governor's mansion. Gov. Jeb Bush has never hidden his
disdain for gambling, including his fight against adding Las Vegas-style
slot machines at Broward County pari-mutuel facilities. State and Broward
voters approved the machines, however, and he grudgingly signed the law
governing them. But Bush is out in January due to term limits, and either
Republican Charlie Crist or Democrat Jim Davis will confront further growth
attempts by the industry, which has pumped big money into Florida's
election. Crist's campaign has received at least $5,000 from individuals
with gambling connections while the state Republican Party has received more
than $125,000. Davis' campaign has received at least $1,500 from individuals
with gambling connections and the state Democratic Party has received at
least $250,000. Despite those donations, both say they are opposed to
further gambling in the state. Tuesday's winner will also have to negotiate
with Indian tribes over the Vegas-style slots they'll be able to install in
their casinos statewide because of the Broward vote. "Neither Jim Davis nor
Charlie Crist are pro-gambling, but either of them are less vehemently
anti-gambling than Jeb was," said state Sen. Steve Geller, D-Hallandale
Beach. A gaming supporter, he is crafting a bill to change some of the
state's slot machine regulations. "Neither of the two guys will be great for
the industry." The state already has poker, horse and dog racing and
jai-alai, which saw $331 million in wagers through the first eight months of
the year. It also has untaxed "cruises to nowhere" that provide Vegas-style
gambling once they reach international waters. The Indian casinos, including
the thriving Seminole Hard Rock casinos in Tampa and Hollywood and
Miccosukee Indian Gaming west of Miami, have poker and video lottery
machines that are similar to slots. The Indian casinos do not pay state
taxes because they are owned by sovereign tribes - although other states
have negotiated deals allowing their tribes Vegas-style games like blackjack
and roulette in exchange for a tax. Bush's attempt to negotiate with
Florida's tribes stalled earlier this year.
After the Florida Gaming Summit in Hollywood last month, a statement posted
on its Web site cited research from Wachovia Capital Markets that the
estimated 6,000 Broward slot machines will generate at least $700 million in
wagering annually. The first are expected to open later this month.

Gambling has its share of opponents. In a statement on its Web site, the
Christian Coalition of Florida says gambling is a danger to society that
produces "huge financial and social costs" that puts families in risk.

Still, the industry is intent on growth. According to Geller, many of the
state's pari-mutuels outside Broward want their own slot machines to keep
pace with Dania Jai-Alai, Pompano Park harness racing, Mardi Gras Track and
Gaming Center and Gulfstream Park thoroughbred track.

Gulfstream and Pompano, known as "racinos," are spending millions to improve
their facilities ahead of the introduction of slots. At Pompano - owned by
Isle of Capri Casinos Inc. - a new 157,000-square foot building includes
space for 1,500 slot machines, a bar and four restaurants including a
steakhouse and New York deli, at a cost of about $155 million. It's set to
open early next year.

"We're not just throwing slot machines in a room," said Doug Shipley, vice
president of racinos for Isle of Capri. "We're striving for a total
entertainment destination."

Meanwhile, casino and gaming companies donated heavily to federal and state
campaigns.

In state races, including the gubernatorial and legislative contests,
gambling interests doled out more than $1.8 million, according to
followthemoney.org. It's a Web site run by The Institute on Money in State
Politics that tracks state campaign contributions. Pompano Park alone
contributed $431,550, the Web site showed.

In Florida congressional races, gambling interests contributed more than
$67,000, according to the Center for Responsive Politics.

And, a pro-gambling political action committee called Yes for Better Schools
and Jobs has received more than $7 million in contributions. The PAC is
leading the campaign to again bring a slot machine measure before Miami-Dade
County voters, who rejected slots last year when Broward voters approved
them.

Geller said races for House and Senate seats also could affect gambling's
future. He wants to change some rules the state has affixed to slot
operations, including lowering the tax rate on the machines from 50 percent
to 35 percent. His bill also would call for an elimination of a 1,500
machines per pari-mutuel cap and allow ATMs and free or discounted drinks at
locations where slot machines exist.

Many in the industry argue the 50 percent rate and other restrictions would
limit economic development around the casinos - restaurants, nightclubs,
shops and entertainment venues.

"If the state were to lower the tax rate you would see a much greater
capital investment in the gaming facilities," said Joseph Weinert, vice
president of Spectrum Gaming Group, a gaming consultancy.

Weinert also said the next governor may have some wiggle room in negotiating
with gambling interests that could see slots added to pari-mutuel facilities
statewide. While Crist and Davis say they are against gambling "expansion,"
adding slots to existing pari-mutuels may not fit into that description,
Weinert said.