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Pari-Mutuels Want Restrictions Lifted, Taxes Lowered If Legislators OK 5-Star Casinos

By: Jim Turner | Posted: November 17, 2011 3:55 AM
Erik Fresen and Ellyn BogdanoffRep. Erik Fresen and Sen. Ellyn Bogdanoff | Credit: Meredith Geddings - myfloridahouse.gov

Demanding a bigger seat at the table that may make up Florida’s 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 Malaysia’s 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 can’t shut it down -- which would obviously be my preference, I’ve said it over and over again -- we’d 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.


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