Committee Chair announces Bill

Legislators propose bill to bring
Vegas-style hotels to Florida


By Nick Sortal, Staff Writer
Copyright © 2011, South Florida Sun-Sentinel
Friday PM, March 4, 2011

They're going for it.

Two state senators announced today that they have filed legislation that would allow five Las Vegas-style casino hotels in Florida, spaced across the state.

Dennis Jones, R-Seminole, and Maria Sachs, D-Delray Beach, announced the news via a release Friday. Jones is chair and Sachs is vice chair of the Senate Regulated Industries Committee, which gambling falls under.

The legislation would authorize one destination resort in each of five districts across the state. Broward and Miami-Dade counties comprise one district. Palm Beach County is part of another, along four counties that neighbor it. The casinos would require approval by local referendum, and the Seminole Tribe of Florida and the state's pari-mutuels say they're going to fight it.

Jones said the casinos, which he called "destination resorts," would help the state's economy. They would have to contain at least 500,000 square feet for meetings and conventions, have at least 1,000 hotel rooms and commit no more than 10 percent of their square footage for gambling.

"Our estimates show that these destination resorts will draw over 5 million new out-of-state visitors annually to Florida visiting the shops and restaurants in the resorts, while also visiting the restaurants, retail and attractions in the surrounding local community," Jones said via the news release. In January, he had said that Floridians make 3.5 million visits out of state to gamble – money they could be spending here.

Outside of South Florida, only four casinos exist – all operated on sovereign land by the Seminole Tribe of Florida. The state and the Seminole Tribe of Florida reached an agreement in 2010 for a five-year compact allowing blackjack and other table games – but not roulette or craps – at certain tribal casinos.

That compact, which pays the state about $1 billion, was based on "exclusivity," meaning the Seminoles paid for the right to be the only game in town. Destination casinos would clearly void the exclusivity portion, meaning their payments would be reduced or even eliminated.

"If the Legislature wants to allow in new entities, it will have to decide if it's a good tradeoff," tribe spokesman Gary Bitner said. "Are they going to make enough to make up the assured payments from the tribe?"

*$50 million per license

Jones wants the state to pick the five resorts -- many of whom have lobbyists in Tallahassee already -- through a bidding process. Suitors would pay a $50 million refundable licensing fee and a $1 million non-refundable application fee.

The legislation also would create a seven-member commission to regulate all casino gambling. Florida's governor would appoint the committee members and the Senate would approve it

Until now, gambling in Florida has grown in pieces. The state approved the Florida Lottery in 1986, then low-limit poker, and in 2004 Broward County voters approved slots, with three pari-mutuels eventually offering slot machines and Miami-Dade county also adding slots.

But taking the leap to full casinos could hurt the state, says Dick Batchelor, a Democrat from Orlando who served in the Florida House of Representatives for eight years.

"We all know it's about money, but rather than do the right thing and set better priorities; they're going to the vice industry, and I'm a pretty liberal guy," he said. "The bottom line is, "Is it good for Florida?" and I would suggest it's not at all good.

"You give up so much of the reputation you've built up, which I don't think can be replaced with the money you make."

*Horse tracks, dog tracks opposed

Florida horse tracks, dog tracks and jai-alai frontons currently have poker and South Florida pari-mutuels, but have been rebuffed in asking the state to allow them to have blackjack to match the Seminoles.

Last year, the South Florida slot machines netted more than $140 million in state revenue; poker accounted for about $12 million.

No pari-mutuel official could immediately be reached but Mardi Gras Casino owner Daniel Adkins has spoken out against the destination hotel concept in the past. He declined to comment Friday.

John Lockwood of Gunster law firm, who represents a number of pari-mutuel facilities in Florida said: "The recently released casino gaming legislation unfortunately ignores the long-standing pari-mutuel industry which has been a part of Florida's history for many decades, employed generations of Floridians, and paid hundreds of millions in tax dollars.

"The ultimate result of this legislation will be a net loss due to the decimation of the pari-mutuel industry and lost revenue from the Seminole compact," he said.

For the bill to be passed, it would have to clear the Senate Regulated Industries Committee and eventually the Florida Legislature, then Florida Gov. Scott. Then the local vote.

Where Scott stands on the proposal is unclear. Scott met with Las Vegas interests in January, but after news of his meeting surfaced, Scott said he was not committed to bringing in destination casinos to Florida. His office declined to comment Friday.

The Senate committee's next meeting is Wednesday, but discussion of the bill is not on the agenda.