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Economic Woes Give Gambling Bills Boost

News Channel 8 photo by PETER MASA

Tribal leaders have big plans for expanding the Seminole Hard Rock Hotel & Casino - if they get the OK to increase gambling options.

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By CATHERINE DOLINSKI | The Tampa Tribune

Published: March 25, 2009

TALLAHASSEE - Teens could gamble more, Tampa Bay Downs could install electronic bingo and the Hard Rock Casino could offer roulette and craps under a pair of Senate bills that breezed through committee today.

The committee passage marked the start of what promises to be a tough negotiation between the House and Senate over the future of gambling in Florida. Eying a possible $1-billion windfall for the state, the Senate is embracing what one House leader derided as an "unbridled expansion of gaming."

The Senate Regulated Industries Committee took just 20 minutes to approve legislation that would expand gambling at the Seminole tribe's seven Florida gaming sites, including the Hard Rock casino in Tampa. The tribe would be able to add roulette and craps to their existing slot machines and blackjack tables in exchange for paying the state at least $400 million per year.

Nontribal gaming facilities also would get less government and more gaming. The Senate would cut the state tax on slot machine revenues from 50 percent to 35 percent. South Florida racetracks would get blackjack; other parimutuels, including Tampa Bay Downs, could install electronic games like bingo and poker.

Peter Berube, vice president and general manager of Tampa Bay Downs, said he welcomes any options to make his facility more competitive. "We've seen a definite decline [in revenues] since the Hard Rock expanded."

All told, the package could net Florida $1 billion, said Sen. Dennis Jones, chairman of the Regulated Industries Committee.

"The money from this … is going to education," said Jones, sponsor of the legislation. "You're either going to raise money for education in Tallahassee or you're going home to raise property taxes."

The Senate is now factoring about $500 million from gambling into its state spending proposal for 2009-2010. "We have a $3 billion hole; this fills about one-third of it," said Jones, R-Seminole.

Tribe representatives withheld comment on the details but rejoiced at the prospect of seeing a compact approved after nearly 20 years of haggling with the state.

Gov. Charlie Crist said he "probably could" support the Senate plan _ despite having campaigned in the past against expanded gambling – but House leaders balked.

Bill Galvano, chairman of the House's panel on Seminole gaming, noted that Crist spoke publicly against a statewide gambling expansion less than a month ago. "I'm surprised that he would even be considering the possibilities that are in the Senate proposal," Galvano said.

The governor has been pressing lawmakers to approve a compact since last summer, when the state Supreme Court threw out the terms he had negotiated in 2007. Crist's compact gave the tribe Class-III slots and exclusive blackjack rights in exchange for at least $100 million per year.

On March 3, Crist urged lawmakers in his State of the State address to approve those terms, which he said would "safeguard us against the expansion of gambling to every corner of our state."

Wednesday, the governor said he was responding to "the most profound economic change since the Great Depression." That means, he said, "We have to adapt, and we have to adjust, and we have to be open-minded in order to get through this."

Galvano argued that the Senate plan would bring the state "substantially less" than $1 billion because, he said, increasing gambling could hurt other taxable industries like tourism and conventions. He is bringing forth a plan which, like Crist's compact, would trade exclusive gaming rights for $100 million per year. But the House bill would force the tribe to give up blackjack, giving the Seminoles geographically exclusive rights pertaining to slots only.

The House will also propose relief for the state's nontribal gaming industries. But it's unlikely to reach as far as the Senate which, among other things, has proposed lowering the minimum age for playing some casino games from 21 to 18 years. And while the House would provide tax incentives, it wouldn't slice the slots tax rate.

Senators, Galvano said, need to think hard about explaining a tax break for casinos in a year when they have to cut education and health care. "That's the way we see it over here."

Reporter Catherine Dolinski can be reached at (850) 222-8382.

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