Legislation setting up a Department of Gaming Control and a State Gaming Commission puts Florida on track to approve mega-casinos and become a top-flight gambling destination.

With one gaming company vowing to build the biggest casino in the world, and deep-pocketed lobbyists touting the economic benefits of gambling projects, two lawmakers introduced a casino bill on Wednesday.

State Rep. Erik Fresen, R-Miami, and Sen. Ellyn Bogdanoff, R-Fort Lauderdale, say their measure will strengthen the state's gaming laws while opening the door to world-class destination resorts that will attract high-rollers from across the globe.

The prospect of one or more glittering resorts in Miami-Dade and Broward counties comes as Florida stares down a $1.5 billion budget shortfall and a chronic double-digit unemployment rate.

The Genting Group, one of the gaming companies seeking to crack the Florida market, says its proposed casino-resort could generate $400 million to $600 million in gaming revenues annually, along with up to 100,000 jobs (including construction).

The Malaysian company wants to build a $3.8 billion mega-resort, and has already bought the Miami Herald building on Biscayne Boulevard to anchor a planned gaming complex. (Under the $236 million purchase agreement, the newspaper will continue to operate there for two years.)

The Las Vegas Sands also wants in.

“Now that the legislation has been filed, we look forward to working with legislators to provide information about the benefits of integrated resorts and the need for a strict regulatory structure to ensure that Florida attracts the top operators,” Ron Reese, LVS' vice president for public relations, said in an email statement Wednesday.

Florida, with its 19 million residents and brisk tourism economy, looks like a good bet for gamers. The Fresen-Bogdanoff bill sweetens the pot for them by setting a modest 10 percent tax rate -- the lowest of any state outside of Nevada's 6.7 percent and far less than the 35 percent paid by existing pari-mutuel
casinos.

Pointing to modest licensing fees stipulated in the bill, skeptics say the state is already misplaying its hand.

"They're giving away the farm. In Illinois, gaming licenses go for $500 million. Here, we're talking about $50 million," says John Sowinski, head of the No Casinos Inc., of Orlando.

Bogdanoff defended her legislation, saying, “Florida is considered the fourth largest gambling state in the nation, but it has let the industry drive policy decisions and that has produced the worst kind of gaming.

“To me, no kind of gaming is good. But we, as policymakers, have to decide, do we want gaming with five-star hotels or Internet cafes in strip malls?”

Whether casino action is big or small, critics say gaming is a lose-lose proposition for the public.

"Look at Las Vegas, which has a higher unemployment rate and an even higher foreclosure rate than Florida," said Les Bernal, head of the Washington, D.C.-based group, Stop Predatory Gambling. "It makes no sense to move ahead with this failed model."

And in rebuttal to Bogdanoff's jab at small-time "Internet cafes" and "adult arcades" at strip malls, Sowinksi said, "There's nothing stopping us from closing them right now."

In an ironic twist of timing, the Fresen-Bogdanoff bill was introduced just three days after it was reported that the Las Vegas Sands Corp. was under investigation by the U.S. Justice Department over allegations that the company violated the Foreign Corrupt Practices Act.

LVS denies the charge, but accusations of misdealing by casino operators are not uncommon. Thus, Fresen and Bogdanoff have produced a 142-page bill that contains hundreds of new licensing, regulatory and enforcement rules.