<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD>
</TD></TR><TR><TD vAlign=top><TABLE width="100%" valign="top"><TBODY><TR><TD>Legislators Set 50% Tax Rate As 6,000 Slot Machines Approved For Br
Dec 11, 2005
</TD></TR><TR><TD>
.jpg)
Broward pari-mutuels Thursday won a long-awaited legislative go-ahead to install Las Vegas-style slots, but their joy was muted by projections that a high tax rate on their profits will stifle plans to build the glittering entertainment and hotel complexes they hoped for.
"I imagine we'll have to go back to the drawing board," said Dick Feinberg, general manager of Pompano Park Harness Track, which is owned by Isle of Capri Casinos. "The higher the tax, the more difficult it is to justify an investment."
In finally passing the slots legislation -- exactly nine months after Broward voters demanded it -- legislators set a 50 percent tax rate, one of the highest in the country. Combined with requirements for the pari-mutuels to hand over some of their profits to the county and local cities as well as horse and dog breeders and owners, some officials said the actual tax on profits will be closer to 65 percent.
"I think it's setting them up for failure," warned Sen. Steve Geller, D-Hallandale Beach, one of the Legislature's vocal gambling proponents. "I believe they are doing this so the governor can lead a repeal campaign and say, 'See? Look what you have instead of those nice facilities you were promised.'"
The regulations, approved by the House in a 110-8 vote and then by the Senate, 23-14, allow the county's four pari-mutuels to each install up to 1,500 machines.
Owners of the area's jai-alai fronton and three racetracks had planned to renovate their aging facilities once they were allowed to install slot machines, adding restaurants, nightclubs, entertainment stages, hotels and convention centers. But those plans were based on legislators agreeing to a lower tax rate and more machines.
Feinberg's Pompano Park had envisioned a $150 million complex that included two hotels, restaurants, a 157,000-square-foot "racino" and even a water park.
Plans unveiled in the spring for Hollywood Greyhound called for a Mardi Gras theme with one or two entertainment stages, at least three themed bars, a restaurant, a simulcast theater and the casino.
On Thursday, Dan Adkins, vice president of Hollywood Greyhound, said he would now likely spend $35million to $45 million to remodel an existing building.
"The grand plans I have for expansion I still have, and if I can make it work under this tax rate and environment and compete with the [Indian] tribes then I'll have to decide later whether to go ahead," said Adkins, the leader of the drive to get slots approved by voters statewide and then in Broward.
Broward County Commissioner Ilene Lieberman, who backed the slots referendum this spring, said, "It's unfortunate that the Legislature has once again thwarted the will of the voters. By imposing such a high tax rate, they guarantee that less money will be raised for education than promised by the constitutional amendment."
Still, the legislative compromise is expected to raise $209 million for public schools by the 2007-08 school year.
Hallandale Beach Mayor Joy Cooper said pari-mutuels would still make a profit. "You're already seeing redevelopment at Gulfstream, and we'll see more as the community grows."
Gulfstream Park has undertaken a massive renovation, including a new track and 300,000-square-foot, three-story building.
Gov. Jeb Bush, who called legislators into special session this week to enact the slots regulations and revamp the state's Medicaid program, said he doesn't view slots as an economic development issue. Although an outspoken opponent of gambling, he said he'll sign the slots bill into law.
"It's not going to feel good," he said. "The fact that there's going to be a bunch of slot machines in Broward County doesn't warm my heart."
Bill Thompson, a professor of public administration at the University of Nevada-Las Vegas who has long studied the gambling industry, said the Florida tax rate is so onerous that little investment will likely be made and most of the slots clientele will be local. Because of that, he predicted gambling-related social problems could be worse and other businesses will see little benefit.
"They will be dumps that just extract money from local pockets," he said.
Thursday's vote came a year after state voters agreed to let Broward and Miami-Dade voters decide whether they want slot machines within their borders. In March, Broward voters approved the idea, but Miami-Dade voters rejected it.
Broward legislators often faced an uphill battle in getting their colleagues to implement the constitutional amendment. The House and Senate were unable to reach agreement during their spring session but appeared more motivated to act this week from fears the courts could end up writing slots regulations if the Legislature didn't act.
Some of the stiffest opposition to implementing the slots rules came from Orlando-area legislators who warned that the spread of gambling could hurt Florida's family friendly tourism industry.
Allowing slots in Broward County, argued Sen. Dan Webster, R-Winter Garden, would lead to "the degradation of our moral compass, of our family friendly state."
Former No Casinos Chairman Rep. Randy Johnson, R-Celebration, warned, "The pari-mutuel industry has spent millions of dollars imposing its will and this is just the beginning."
Johnson has pledged to lead the fight to repeal the constitutional amendment approved by voters statewide last November, and Bush said he would like to be part of that effort.
The new casinos -- which will open in six months or less -- will join a competitive gambling market in South Florida, where the Seminoles' Hard Rock Hotel & Casino and day cruises are a strong lure for bettors.
Now Bush must forge an agreement with the Seminoles and Miccosukees, who operate a casino in Miami-Dade County.
Neither tribe has been forthcoming about how much they are willing to be taxed. But Geller doubted they would agree to pay the equivalent of the 50 percent tax rate the pari-mutuels will be charged, predicting instead the tribes could pay as little as 1 to 2 percent of their revenue to the state. Local tourism officials, meanwhile, said there would be no change in how the area is marketed to tourists and conventions. "The addition of a couple thousand slot machines doesn't change us from greater Fort Lauderdale to an alternative to Atlantic City," tourism director Nicki Grossman said.
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
<CENTER><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD>Game News </TD></TR></TBODY></TABLE></CENTER>
</TD></TR><TR><TD vAlign=top><TABLE width="100%" valign="top"><TBODY><TR><TD>Legislators Set 50% Tax Rate As 6,000 Slot Machines Approved For Br
Dec 11, 2005
</TD></TR><TR><TD>
"I imagine we'll have to go back to the drawing board," said Dick Feinberg, general manager of Pompano Park Harness Track, which is owned by Isle of Capri Casinos. "The higher the tax, the more difficult it is to justify an investment."
In finally passing the slots legislation -- exactly nine months after Broward voters demanded it -- legislators set a 50 percent tax rate, one of the highest in the country. Combined with requirements for the pari-mutuels to hand over some of their profits to the county and local cities as well as horse and dog breeders and owners, some officials said the actual tax on profits will be closer to 65 percent.
"I think it's setting them up for failure," warned Sen. Steve Geller, D-Hallandale Beach, one of the Legislature's vocal gambling proponents. "I believe they are doing this so the governor can lead a repeal campaign and say, 'See? Look what you have instead of those nice facilities you were promised.'"
The regulations, approved by the House in a 110-8 vote and then by the Senate, 23-14, allow the county's four pari-mutuels to each install up to 1,500 machines.
Owners of the area's jai-alai fronton and three racetracks had planned to renovate their aging facilities once they were allowed to install slot machines, adding restaurants, nightclubs, entertainment stages, hotels and convention centers. But those plans were based on legislators agreeing to a lower tax rate and more machines.
Feinberg's Pompano Park had envisioned a $150 million complex that included two hotels, restaurants, a 157,000-square-foot "racino" and even a water park.
Plans unveiled in the spring for Hollywood Greyhound called for a Mardi Gras theme with one or two entertainment stages, at least three themed bars, a restaurant, a simulcast theater and the casino.
On Thursday, Dan Adkins, vice president of Hollywood Greyhound, said he would now likely spend $35million to $45 million to remodel an existing building.
"The grand plans I have for expansion I still have, and if I can make it work under this tax rate and environment and compete with the [Indian] tribes then I'll have to decide later whether to go ahead," said Adkins, the leader of the drive to get slots approved by voters statewide and then in Broward.
Broward County Commissioner Ilene Lieberman, who backed the slots referendum this spring, said, "It's unfortunate that the Legislature has once again thwarted the will of the voters. By imposing such a high tax rate, they guarantee that less money will be raised for education than promised by the constitutional amendment."
Still, the legislative compromise is expected to raise $209 million for public schools by the 2007-08 school year.
Hallandale Beach Mayor Joy Cooper said pari-mutuels would still make a profit. "You're already seeing redevelopment at Gulfstream, and we'll see more as the community grows."
Gulfstream Park has undertaken a massive renovation, including a new track and 300,000-square-foot, three-story building.
Gov. Jeb Bush, who called legislators into special session this week to enact the slots regulations and revamp the state's Medicaid program, said he doesn't view slots as an economic development issue. Although an outspoken opponent of gambling, he said he'll sign the slots bill into law.
"It's not going to feel good," he said. "The fact that there's going to be a bunch of slot machines in Broward County doesn't warm my heart."
Bill Thompson, a professor of public administration at the University of Nevada-Las Vegas who has long studied the gambling industry, said the Florida tax rate is so onerous that little investment will likely be made and most of the slots clientele will be local. Because of that, he predicted gambling-related social problems could be worse and other businesses will see little benefit.
"They will be dumps that just extract money from local pockets," he said.
Thursday's vote came a year after state voters agreed to let Broward and Miami-Dade voters decide whether they want slot machines within their borders. In March, Broward voters approved the idea, but Miami-Dade voters rejected it.
Broward legislators often faced an uphill battle in getting their colleagues to implement the constitutional amendment. The House and Senate were unable to reach agreement during their spring session but appeared more motivated to act this week from fears the courts could end up writing slots regulations if the Legislature didn't act.
Some of the stiffest opposition to implementing the slots rules came from Orlando-area legislators who warned that the spread of gambling could hurt Florida's family friendly tourism industry.
Allowing slots in Broward County, argued Sen. Dan Webster, R-Winter Garden, would lead to "the degradation of our moral compass, of our family friendly state."
Former No Casinos Chairman Rep. Randy Johnson, R-Celebration, warned, "The pari-mutuel industry has spent millions of dollars imposing its will and this is just the beginning."
Johnson has pledged to lead the fight to repeal the constitutional amendment approved by voters statewide last November, and Bush said he would like to be part of that effort.
The new casinos -- which will open in six months or less -- will join a competitive gambling market in South Florida, where the Seminoles' Hard Rock Hotel & Casino and day cruises are a strong lure for bettors.
Now Bush must forge an agreement with the Seminoles and Miccosukees, who operate a casino in Miami-Dade County.
Neither tribe has been forthcoming about how much they are willing to be taxed. But Geller doubted they would agree to pay the equivalent of the 50 percent tax rate the pari-mutuels will be charged, predicting instead the tribes could pay as little as 1 to 2 percent of their revenue to the state. Local tourism officials, meanwhile, said there would be no change in how the area is marketed to tourists and conventions. "The addition of a couple thousand slot machines doesn't change us from greater Fort Lauderdale to an alternative to Atlantic City," tourism director Nicki Grossman said.
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
.gif)
.jpg)
