2006 Election Ushers in the Casinos ....

"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.

For state's gambling industry, a new era begins with Tuesday's elections

By ADRIAN SAINZ
Associated Press
Posted November 2 2006, 11:25 AM EST

FORT LAUDERDALE -- 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.

``It's just seen as a different form of gambling ... in a place where it already exists," he said.
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