SENATE CASINO PLAN WILL SEE SOME REVISIONS

By JIM SAUNDERS
THE NEWS SERVICE OF FLORIDA

THE CAPITAL, TALLAHASSEE, December 7, 2011.......A Senate bill that would clear the way for resort casinos in Florida will be revamped, after lawmakers raised a flurry of questions Wednesday about issues such as the impact on longstanding pari-mutuel facilities.

Sponsor Sen. Ellyn Bogdanoff, R-Fort Lauderdale, said potential changes could include revising a proposed 10 percent tax rate for the so-called "destination" resort casinos --- a rate that is lower than South Florida pari-mutuel facilities pay on slot machines and lower than casino taxes in other states.

Some members of the Senate Regulated Industries Committee were skeptical of the bill during a lengthy discussion, with Sen. John Thrasher, R-St. Augustine, saying he thinks the Senate needs to "slow it down.''

"This is an expansion --- a major expansion --- of gambling in the state of Florida,'' Thrasher said.

Many of the concerns centered on whether existing gambling venues would have "parity'' with the resort casinos in the taxes they pay and the games they are allowed to offer. Supporters say pari-mutuel facilities have made investments and employed people for decades.

"I feel very strongly that whatever we do, we have to make sure we have parity,'' said Senate Minority Leader Nan Rich, D-Weston.

The committee meeting offered a snapshot of the complicated debate that could play out in the coming months as lawmakers consider allowing up to three resort casinos. Supporters contend the casinos would inject billions of dollars and tens of thousands of jobs into Florida's struggling economy.

The proposal has become tangled in other gambling-related issues, such as whether expanding gambling would threaten payments to the state from Seminole Indian casinos and whether the state should regulate or ban storefront Internet cafes that critics contend offer electronic gambling.

The bill was designed to allow up to three resort casinos in Miami-Dade and Broward counties, though it could apply to other counties. The bill also would create a state commission to regulate gambling.

Regulated Industries Chairman Dennis Jones, R-Seminole, said he plans to bring up the bill for a vote in January. Bogdanoff said she would talk with other senators and offer a revised proposal, likely as a "strike-all amendment,'' before such a vote.

"Obviously, why do the strike-all if I don't have the votes?'' she said after the committee meeting. "It's a Rubik's Cube.''

Rep. Erik Fresen, R-Miami, also has proposed the resort-casino plan in the House. But in arguing for the Senate to move slowly on the issue, Thrasher said he has not received any indications about how the House will handle the proposal.

"I haven't heard the first word from the House of Representatives,'' said Thrasher, who is chairman of the powerful Rules Committee.

Senate President Mike Haridopolos, R-Merritt Island, said later Wednesday he wants to bring the issue up for a floor vote during the 2012 legislative session, whatever the ultimate outcome. He described the proposal discussed in the Regulated Industries Committee as the "first iteration of the bill.''

Jones said he had concerns about the bill, including wanting to make sure counties other than Miami-Dade and Broward could be considered for resort casinos. He said the Tampa Bay area might be another candidate for such a facility.

Also, Jones criticized the proposed 10 percent tax rate and said he thinks it should be at least 25 percent. As a comparison, pari-mutuel facilities in Miami-Dade and Broward pay a 35 percent tax rate on slots revenues.

"I think 10 percent is entirely too low,'' he said.

Bogdanoff said the 10 percent tax rate is balanced by a requirement in the bill that each resort casino spend at least $2 billion on expenses such as construction and equipment. She said a potential change would be to set a high tax rate but allow it to be reduced based on the amounts of money that casino companies or pari-mutuel facilities invest in construction projects.

She said she is trying to bring in high-end facilities that would couple gambling with other amenities such as convention space and shopping.

"I want to reform gaming in this state,'' she said. "I want to change its direction.''

Part of the parity issue deals with taxes, but part of it centers on the fact that the resort casinos would be allowed to offer a broader number of games than pari-mutuel facilities offer. While some Miami-Dade and Broward pari-mutuels have slot machines, facilities in other parts of the state rely on cardrooms, horse racing, greyhound racing and jai alai.

Ken Plante, a lobbyist for Tampa Bay Downs, said that facility has a difficult time competing with Indian casinos and even horse tracks in other parts of the country. That is because those other tracks offer games such as slot machines, which allows them to increase purses and attract horses to race.

"If you're going to move forward with this, don't forget us again,'' Plante told the committee.