Bush Regulates Slots in Broward 

Florida’s Governor Jeb Bush signed into law a bill permitting four Broward County pari-mutuel facilities to install 1,500 slot machines each.  The signing comes as a bit of a surprise after Bush’s strong vocal opposition to gambling.

Fifty percent of the slot machine profits will go directly to the state of Florida; the state is obligated to dedicate the money to public schools.  The fifty-percent tax is among the nations highest for slot machines at pari-mutuel facilities. 

Within six months, regardless of whether state officials have completely written rules regarding the slot machines, Hollywood Greyhound Track, Pompano Park Harness Racing, Gulfstream Park Thoroughbred Racing, and Dania Jai-Alai can legally begin installing slot machines.

Bush disclosed is stand-point in his bill signing letter, “I oppose the expansion of gambling because it is detrimental to Florida's economic development and hurts Florida's families. However, I have a constitutional duty, together with the Florida Legislature, to implement the voter approved initiative. 

Bush agreed to sign during a special session last month when the Legislature passed a bill regulating and taxing the machines.  Bush was quoted as saying, "It's not going to feel good."

In 2004, voters amended the constitution of Broward and Miami-Dade counties.  Each county was permitted to decide whether their jai-alai and racing facilities would have the option of offering slot machines.  The motion was approved in Broward but rejected in Miami-Dade. 

Florida lawmakers are already making steps to repeal the amendment.  The approval of slot machines in pari-mutuels gives Florida’s two Indian tribes grounds to discuss measures of getting Las Vegas style slot-machines into their own casinos.   The tribes already carry bingo-based slots in their casinos.  One such opposing Representative is Randy Johnson (R). Johnson predicts, "This is the first step down the fast slope of the total expansion of gambling in the state of Florida."

House Speaker Allan Bense (R) encourages the state to continue striving against the expansion of slots, though he is not sure how much the repeal effort will accomplish.  Bense campaigned alongside Bush against slot machines. "I'm hoping that those who succeed us also have the same disdain for gambling that the governor and I have…There will always be a push to expand gambling in Florida because the money is just huge."  

The July 1^st deadline expired before Florida lawmakers could pass a slots bill.  They were hung up by disagreements on the House and Senate bills.  The Senate preferred low tax rates to aid pari-mutuels in effectively competing with fancy Indian casinos by investing in entertainment halls and hotels.  However, firmly entrenched against the expansion of gambling in the state, conservative lawmakers fought for high tax rates and tight restrictions on slot rooms. 

Alan Koslow is an attorney that represents many parties in the gaming industry, including Pompano Park.  He says, after taking time to reassess their goals, facilities will invest in slot machines.  "It's a good start," Koslow said. "It allows the pari-mutuels to become entertainment meccas."

Koslow predicts the Pompano Park will reap benefits from being owned by Isle of Capri Casino Inc.  Pompano Park has already received permission to begin constructing slot machine facilities and high-end restaurants next to its racetrack.  "You have a unique blend of pari-mutuel operations and casino operations and the operators that know how to blend both are going to be successful not withstanding a tax rate that admittedly is onerous"  

The Legislature did agree to a few conditions with in the bill that appeased Bush, such as the establishment of gambling addiction programs, banning discounts on alcoholic drinks in slot machine rooms, and setting 21 as the legal gambling age.   

Bush is concerned that pari-mutuels will seek “frivolous rule challenges” to hold up the process of the Department of Business & Professional Regulation.  Pari-mutuels have the right to precede with slots installations in the next 6 month regardless of whether the Department has finished writing their rules of operations.  Bush sent a warning to the Legislature and a mild threat to the pari-mutuels, "I urge the Legislature to closely monitor the conduct of the pari-mutuels in order to avoid any such abuses during rule implementation and to take action during the regular session to set an expiration date for temporary licenses should any abuses occur."

- Back to Slots Latest