January 07, 2014

Genting offers plan for a slots-only casino aimed at winning horse racing support

Miami Herald demolishedGenting Resorts World announced Monday that it wants to stake its fortunes on a scaled-back, slots-only resort on the Miami waterfront, a suggestion that the company may be prepared to sidetrack the glitzy destination resort that it planned two years ago.

Under the proposal, the Malaysian gambling company would enter into a four-way partnership that would allow it to use a permit owned by Gulfstream racetrack to open a slots casino at the Biscayne Bay property once owned by the Miami Herald.

If approved by legislators or state gambling regulators, the permit would allow Genting’s Resorts World Miami to open 2,000 slot machines and off-track betting. The proceeds would be used to augment thoroughbred purses at Gulfstream’s racetrack and go into a non-profit company to benefit the other partners: Florida horse breeders, owners and trainers. Genting and Gulfstream would keep some of the revenue as administrative fees.

“I think it’s game-changing,” said Lonny Powell, CEO of the Florida Thoroughbred Breeders and Owners Association. “This is the first partnership where the revenue stream and investment would actually go back into the horses.”

Gulfstream has argued that a permit it obtained last year for a non-profit subsidiary allows it to operate in both Miami-Dade and Broward counties because of property it owns that straddles the county line. But state regulators have rejected that interpretation and Genting would have to get legislators to clarify the law, get partimutuel regulators to change the ruling or take the matter to court to obtain the permit.

The concept is a “less lucrative option” than the $3.1 billion resort on 13.9 acres originally sought by the company in 2011, said Genting lobbyist Brian Ballard, but allows the company to work with the horseracing industry. More here.

Photo: Former Miami Herald building being dismantled

December 09, 2013

Proponents of Sunrise casino destination make their case in Senate gaming committee

The Florida Panthers hockey team could be the first major sports team linked to a destination casino if legislators permit an expansion of gambling, proponents said Monday after a meeting of the Senate Committee on Gaming.

Sunrise Sports & Entertainment is partnering with Las Vegas-based Boyd Gaming Corporation on its proposal for a hotel, spa and casino with 50,000 square feet for meeting space on the land adjacent to the BB & T Center in the city of Sunrise. Broward County owns the land.

The BB & T Center, which hosts concerts and special events as well as hockey games, is across the road from Sawgrass Mills, considered Florida's second-largest tourist destination with more than 350 outlet stores, and near the Sawgrass Expressway and other roads, factors that make it a prime location for the casino/hotel resort, said Michael Yormark, president and CEO of Sunrise Sports & Entertainment and the Florida Panthers NHL hockey team.

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November 04, 2013

Public opinion on gambling expansion "like succotash"

Industry officials, experts and members of the public travelled to Tallahassee on Monday to offer feedback on a new report examining the potential economic and social impacts of expanded gambling in Florida.

The report, by the New Jersey-based research firm Spectrum, found that additional casinos would have a “moderately positive impact” on the state economy and could create tens of thousands of direct and indirect jobs.

The social costs would be minimal, the authors concluded, “especially since gambling opportunities are already widespread across Florida.”

The speakers at Monday’s Senate hearing had varying viewpoints on the study.

Terry Kasberg, a real estate broker and internet café owner from Spring Hill, said big casinos would hurt local restaurants owners and hotel operators.

“It’s like putting a Super Wal-Mart into a small town and watching the other little stores just go bye-bye,” Kasberg said.

But Nick Iarossi, a lobbyist for the casino company Las Vegas Sands, said a destination casino would not cannibalize surrounding businesses. Iarossi recommended state lawmakers allow casino operators to compete for a limited number of destination-casino permits. He also wants the state to better regulate the industry.

“My client would advocate for a strong regulatory environment here with the addition of a gaming commission, similar to what Nevada or New Jersey has,” he said.

Iarossi said Las Vegas Sands was hoping to set up shop in South Florida.

The tart reply from Sen. Gwen Margolis, D-Miami: “Don’t come to Miami-Dade County, my friend.”

Other speakers expressed a similar distaste for casinos.

Sergeant Wiley Meggs, of the Florida Sheriffs Association, said new casinos would cause the crime rate to spike.

“Any time you get a casino, you end up with higher rates of burglary and theft, higher [rates of] fraud and more violent crimes…” Meggs said. “The brunt of it falls on local law enforcement.”

Jennifer Campbell, of the Florida Council on Compulsive Gambling, implored the committee to consider the problem of compulsive gambling.

Adam Giery, of the Florida Chamber of Commerce, raised concerns about Florida's "family-friendly brand."

"We as a business community must stand and do everything we can to protect that brand,” he said.

A handful of other speakers addressed how new laws would affect racinos and pari-mutuels.

When the public testimony finished, the members Senate Committee on Gaming declined to weigh in.

The meeting was one of several recent public hearings on gambling. The committee solicited public input in Coconut Creek and Lakeland last month. Additional hearings are scheduled for Pensacola on Nov. 14 and Jacksonville on Nov. 15.

Sen. Garrett Richter, the Naples Republican who chairs the gaming panel, said the public comments have run the gamut.

"It's like succotash," he said. "There's peas, there's carrots. I don't have any sense that the committee, at this point, is developing a united front on a solution."

He added: "The work in front of us is not going to be obvious. It is going to be a challenge. But I think the committee is up for the challenge."

August 09, 2013

Donald Trump: Florida would make a mistake not to bring casinos to Miami

Donald Trump, the new owner of the Doral Golf Resort & Spa, is barreling ahead with his $250 million remake of the once-troubled facility, but is he also ready to pave the way for casinos in Florida?

The Donald this month hired Tallahassee uber-lobbyist Brian Ballard to represent him in the Capital City and, he told the Herald/Times, Florida would be foolish to not let Miami compete with Las Vegas.

"If Miami doesn't do casinos, that would be a terrible mistake," Trump said in an interview on Friday. "Taxes would be able to be reduced substantially and Miami is the only place that Las Vegas is really concerned about -- in the United States."

Florida legislators are expected to piece together some sort of gambling bill when the legislature begins its session next March but the scope of it, and whether it will include destination resorts that expand casino gambling in South Florida, remains to be seen. Lawmakers postponed plans to do a series of hearings around the state this summer and are awaiting an information-gathering report from the Spectrum Gaming group to be completed this fall.

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July 05, 2013

Did state regulators rubber stamp 'phony horse racing'? PolitiFact weighs in

@KatieLSanders

A masked thief fanning $100 bills is the backdrop for an ad blasting “phony horse racing.”

You’re probably thinking, “Phony horse racing? Huh?” It’s okay — we thought it, too.

A coalition of horse breeders and owners used the phrase for races they deem improper at a rural racino west of Tallahassee. Expansion of parimutuel rodeo-style racing has dramatic consequences for the quarter horse industry and parimutuels, opponents say.

“Florida outlawed Internet cafes, but rubber-stamped phony horse racing,” begins the United Florida Horsemen ad. “Gov. Scott, can you tell us why?”

Is the ad’s message hyperbole or on point? PolitiFact says the ad is...half true.  

 

April 29, 2013

Casino opponents go on the offensive against legislative gambling contract

 No Casinos, the Orlando-based anti-gambling group, is launching a television and radio campaign urging House Speaker Will Weatherford and Senate President Don Gaetz to abandon the $400,000 contract they signed two weeks ago with Spectrum Gaming Group for a study of the state's gambling climate.

They say the company cannot be independent since it works with the gambling industry.

John Sowinski, president of the group that is backed by Disney, the Florida Chamber of Commerce and other industry-backed companies, commended the legislative leaders for quick passage of legislation to outlaw the Internet cafes but noted, "unfortunately, your leadership on this issue and the good work of the committees you formed to study it are now in peril,'' he wrote. "The reason: the experts chosen by your staff to conduct a study on gambling and the impact of additional gambling in Florida have irreconcilable conflicts of interest."

He urged them to cancel the contract and "stop what will otherwise become $400,000 taxpayer dollars spent on a study that no objective person who knows of its author will believe. Rescue the good idea of studying the impacts of gambling by having experts who have never worked for the industry conduct the study."  Download NoCasinos-Letter-to-President-Gaetz-and-Speaker-Weatherford

The television ad is produced in the style of a too-good-to-be-true television pitch with fast-talking announcer claiming that the gambling industry believes slots are good for your heart. "The Florida Legislature has hired the same reseracher to find out if more gambling will be good for Florida,'' the announcer says. "Folks, this deal is so big, so crazy, there's only one place where you can it it and that's right here from the Florida Legislature."

A television and radio ad campaign limited to Tallahassee has been begun, Sowinski said.




April 16, 2013

Legislature doesn't look far for gaming expert to do study

After a nationwide search, the Florida Legislature didn't end up far with its plan to hire a national gaming expert for $400,000 to write its report to lay the groundwork for expandingi gambling in Florida.

The House and Senate last week signed a contract with Spectrum Gaming Group, a New Jersey-based company that sponsors the annual Florida Gaming Congress attended by Florida legislators and lobbyists. The company has repeatedly been tapped by the same companies that want to expand Florida's gambling options to present reports to lawmakers in the past.

The group will write two separate reports that study the economic, fiscal, and social impacts of expanding gambling in Florida, including the addition of destination resort casinos. It will also examine the impact of existing games, from state-sanctioned lottery and casinos run by the Seminole Tribe of Florida to the slots casinos run by the pari-mutuels. 

“Spectrum has extensive experience in providing independent studies of gaming in a variety of jurisdictions, including Massachusetts, Connecticut, Illinois, Kentucky, Louisiana, and Ohio,” said Florida House Speaker Will Weatherford, R-Wesley Chapel, in a statement. “I look forward to reviewing their report as we take a holistic view of the role gaming plays in Florida's economy.”

Here's more from the Senate press release:

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April 10, 2013

Arcade owners hire constitutional lawyer Bruce Rogow, prepare for legal challenge

Just hours after Gov. Rick Scott signed into law legislation that immediately outlawed machines operated by Internet cafes and senior arcades in Florida, more than 100 members of the Florida Arcades Association met in Pompano Beach with constitutional law expert Bruce Rogow and prepared to take the state to court.

"I think that there is probably no choice but to file a lawsuit," Rogow told the Associated Press after the 4 p.m. meeting called by Gale Fontaine, head of the arcades association.

Rogow said he believes that in their haste to give law enforcement additional tools to crackdown on illegal machines at Internet cafes throughout the state and maquinitas parlors in Miami, lawmakers also targeted arcade operators with vaguely-worded language that he considers arbitrary and irrational.

"It's not that they made these machines illegal; they just had to slow them down and hobble them,'' Rogow told the Herald/Times on Wednesday.

Rogow, an attorney based in Fort Lauderdale, said he believes there are several flaws in the law Florida lawmakers passed in reaction to the federal and state probe into Internet cafes operated by Allied Veterans of the World.

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April 02, 2013

Internet cafes' loss may be parimutuels' gain: legislators to ponder moving games

As the Florida Senate appears ready to outlaw the electronic slot machine-like games offered by Internet cafes, adult arcades and maquinita operators in Florida, there is talk that the machines will be resurrected next year.

Sen. John Thrasher, a St. Augustine Republican and chairman of the Senate Rules Committee, said Tuesday that he would like to consider allowing the machines to be operated at the dog tracks, horse traces and jai alai frontons throughout the state, which are currently regulated and paying taxes.

“As long as they’re regulated in the pari-mutuel facilities that’s something for us to talk about. I’ve always said if we are going to allow any expansion of gaming – which I’m not really for – the existing authorized, legitimate are where we should do it,” he said. 

Las Vegas-style slot machines are currently only allowed in the six parimutuel faciliites Miami Dade and Broward but in 2011 Thrasher proposed an amendment to a bill in the final hours of the legislative session that would have allowed the Jacksonsville greyhound track in his district to operate a copycat version, known as video lottery terminals, that allow players to play against each other, not the house. The amendment nearly derailed the end of session, but it didn't pass.

Now, Thrasher says, when the Florida Legislature returns next year to take a comprehensive look at the state's gambling laws, the issue should return. The House and Senate have set up select committees to study gaming regulation and come up with a proposal next year. The Senate committee is chaired by Sen. Garrett Richter, R-Naples, and the House's is chaired by Rep. Rob Schenck, R-Spring Hill.

“I suspect that when Sen. Richter does his deal next year that some of the pari-mutuels will come in and say ‘let us do it’ because we’re paying taxes – a high rate of taxes,'' he said.

 

 

March 31, 2013

Undercover slots expert lays out case against 'Internet cafes' and arcades

Working undercover as just another aging patron, D. Robert Sertell watched as customers streamed into Internet cafes in strip malls across Florida to buy access to Internet time or long-distance phone service.

As a national expert on slot machines, Sertell saw that the customers visiting the cafes operated by the Florida-based charity Allied Veterans of the World were not there to surf the web or make phone calls. They came to play what he contends are illegal slot machines, complete with spinning wheels, cash payouts, and names such as Captain Cash, Lucky Shamrocks and Money Bunny.

Using a mouse as their lever, and “sweepstakes” credits as their coins, customers played games that were nothing more than sophisticated, computerized slot machines, Sertell concluded after visiting 41 cafes, from Monroe County to Duval County, in early January.

“The little old ladies, whose eyes were fixated on the screen, would sit and play. Their hand never leaving the mouse,” he told the Herald/Times. “They refer to it as a casino. Every one of those machines is rigged. It’s a game of chance.”

Sertell, 71, known as “Father Slots” in the casino industry, is a slot machine expert from New Jersey who has built machines, written training and repair manuals and has become the expert of choice for law enforcement officials who want to know the difference between a computer that is rigged to operate like a slot machine and one that isn’t.

He is expected to be a key witness for state and federal prosecutors in arguing that the electronic sweepstakes machines run by Allied Veterans at their 49 Internet cafes in Florida were illegal gambling operations, operating under the guise of a charity. More here.