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House spinning wheels over Internet cafés

Thursday, February 9th, 2012 by Dara Kam

A ban on Internet cafés poised for a House floor vote appears to be dead in the Senate, which likely won’t do anything about regulating the so-called “casinos on the corner” either.

A Senate committee approved a measure regulating the cafés, and would have killed a bill to ban them despite the support of Gov. Rick Scott who said they should be outlawed.

“Candidly, the Internet cafés are not a major pressing issue in our world. We’re focused on the budget,” Haridopolos, R-Merritt Island, said.

Haridopolos pointed out a proposal to ban the cafés would not have made it through its first committee stop and said his chamber would “take a look” at the measure (HB 3) if the House passes it.

“In the grand scheme of things, it’s not our major focal point. I guess some people are really excited about taking that issue on. It’s pretty low on our totem pole,” Haridopolos said.

A pair of competing legal opinions – one from the Seminole Tribe’s lawyers and another from lawyers for the cafés – say that SB 390 that would regulate the cafés would nullify a compact with the tribe potentially losing the state $233 million a year, or that it wouldn’t.

Haridopolos on gaming: House ‘led folks on,’ Internet café reg in doubt

Wednesday, February 8th, 2012 by Dara Kam

It’s highly unlikely that Senate President Mike Haridopolos will get the up-or-down floor vote he wanted on a sweeping gambling bill that included three high-end casinos since the House effectively killed the bill last week.

Without naming names, Haridopolos accused GOP leaders across the rotunda of playing games with the way they handled the “destination resorts” bill that sponsor Erik Fresen, R-Miami, asked to be put aside Friday because he knew it would not get voted out of its first committee.

“Given all the signals they were sending, what committees they sent it to, it was pretty obvious that they led some folks on and they weren’t really going to vote on it,” Haridopolos, R-Merritt Island, told reporters this afternoon. “We saw that coming about a week ago.”

When asked if he was disappointed that the bill appears to be done for before the mid-point in the 60-day legislative session, Haridopolos reiterated that he wanted it to get a floor vote.

“Clearly with the decision made in the House, we’re not going to have that opportunity. But that’s why we have two chambers. I’m not offended by it. I think we all saw it coming. They chose to act quickly and just kill it from discussion. That’s their prerogative,” he said.

But Haridopolos stopped short of sticking a fork in the destination resorts bill, saying the Senate’s version would continue to move through committees even though it appears to be going nowhere in the House.

“It’s a 60-day session. We’ll have to see what happens,” he said.

And a legal opinion from the Seminole Tribe’s attorneys puts in doubt the future of another gambling issue dividing the two chambers – Internet cafés.

The House is moving forward with a proposal to ban the “casinos on the corner” now operating under Florida sweepstakes laws. But the Senate appears to favor a measure that regulate the cafés.

That would violate an agreement the state struck with the Seminoles, the tribe’s attorneys wrote in an opinion, and could put at risk the $233 million a year the Indians give the state for “exclusivity” in certain types of gambling.

Haridopolos called that a “new wrinkle” in the Internet café debate and said the Senate’s lawyers were looking into the issue.

“Clearly the House and the Senate are not on the same page…A majority of senators would agree with regulating as opposed to banning those facilities,” he said.

Comparison of House and Senate gambling bills

Thursday, February 2nd, 2012 by Dara Kam

The House released its version of a gambling proposal, slated for its first committee vote tomorrow, that opens the door casinos in what could be a permanent game-changer for Sunshine State tourism.

While both the House and Senate plans would allow up to three high-end “destination resorts” to open, the House proposal would limit them to Broward and Miami-Dade counties, where slot machines outside of Indian casinos are already up-and-running thanks to voter approval.

The two plans (HB 487, SB 710) include differences about who could give the casino licenses, who would oversee a new gambling agency and the future of Internet cafés.

- Internet cafés: HB 487 would ban them altogether. SB 710 would regulate them, charge operators $100 per terminal and allow local government to prohibit them.
- Games: SB 710 would allow pari-mutuels in the counties where destination resorts open to offer the same games that the casinos have, meaning dog and horse tracks and jai-alai frontons near the casinos could have blackjack, roulette or craps.
- Voter approval: Both bills would require voters to approve the destination resorts by referendum. But the House version would only allow the casinos to be licensed in Broward or Miami-Dade counties.
- Oversight: HB 487 would give the governor and the Florida Cabinet oversight of a new agency – the Department of Gaming Control. The governor and Cabinet would also choose which casino operators would get resort licenses. SB 710 would create a statewide gambling commission that would oversee the Department of Gaming. The commission would pick the casino vendors.
- Taxes: Both set a 10 percent tax rate for game revenues at the destination resorts and would lower the tax rate on slot machines at pari-mutuels (now 35 percent) in counties where a destination resort opens to 10 percent.

After two workshops, the House Business and Consumer Affairs Committee will vote on the bill tomorrow morning. The Senate Regulated Industries Committee approved Sen. Ellyn Bogdanoff’s version weeks ago but faces an uphill battle at its next stop in opponent John Thrasher’s Rules Committee.

Internet ban, in limbo in Senate, on its way to House floor with blessing of Gov. Scott and Cabinet

Wednesday, February 1st, 2012 by Dara Kam

Gov. Rick Scott and the Florida Cabinet are putting pressure on lawmakers to approve an all-out ban on Internet cafés now on its way to the House floor but facing a doubtful future in the Senate.

The House Economic Affairs Committee approved the bill (HB 3) this morning, drawing the praise of the Republican governor and Cabinet who want the so-called “casinos on the corner” shuttered.

Critics of the cafés, an estimated $1 billion industry which operates under state “sweepstakes” laws and are largely unregulated, say they prey on the state’s poor and vulnerable. But the café operators say they provide good jobs for their employees and a place to socialize for seniors and others.

Scott believes the store-front casinos found in strip malls throughout the state are already illegal but wants lawmakers to officially ban them.

“These store front casinos are impacting Florida’s neighborhoods and families,” said Governor Scott. “They are and should be illegal. Representative Plakon’s bill closes this loophole and I commend his dedication to shutting down these establishments,” Scott said in a statement released by Rep. Scott Plakon, the Longwood Republican who’s sponsored the bill.

Attorney General Pam Bondi, Chief Financial Officer Jeff Atwater and Agriculture Commissioner Adam Putnam joined in the chorus demanding the shut-down.

But the Senate is moving forward with a separate measure that would regulate the cafés and impose a $100 fee per computer terminal for operators. Estimates of the number of cafés in the state range from 800 to 1,400 but all agree they have mushroomed in the past few years. Palm Beach County commissioners recently barred new cafés from opening in unincorporated areas.

The Senate Regulated Industries Committee approved a regulation measure and set aside a bill that would make the cafés illegal.

Internet café stand-off: Senate committee passes regulation, House and Scott want shut-down

Thursday, January 19th, 2012 by Dara Kam

An Internet café showdown is shaping up after a Senate committee overwhelmingly approved a measure that would regulate the “casinos-on-corner” shortly before the sponsor of a proposal that would shut them down withdrew his bill from consideration.

The Senate Regulated Industries Committee signed off on the regulation of the cafés (SB 380) after hearing from proponents who said the facilities provide up to 13,000 jobs and are a place for seniors to socialize.

“We have never had one, eensy-teensy, bit of crime,” said Julie Slattery, who owns two Internet cafés in Melbourne.

“This is a business. It’s a real business. It’s a form of entertainment,” Slattery said. She asked the committee to regulate rather than shut the locales to “get rid of whatever it is you’re afraid of.”

But prosecutors and the Florida Sheriffs’ Association objected that the cafés are a venue for crimes and illegal gambling and need to be shuttered.

Sen. Miguel Diaz de la Portilla, the bill’s sponsor, rejected those arguments, noting that prosecutions have not resulted in a single conviction.

“I guess there’s a shortage of real crime out there so there’s a need to create some more so you can go prosecute it,” Diaz de la Portilla, R-Miami, said, adding that traffic problems and robberies often take place at convenience stores.

“Should the next bill ban convenience stores, too?” he said.

After passing the regulatory measure by an 8-1 vote, the committee then took up a bill (SB 428) that would outlaw the facilities. That proposal is similar to one passed by a House committee earlier this week and mirrors the criminalization Gov. Rick Scott yesterday said he’d like lawmakers to impose.

But before the committee could vote on his bill, Sen. Steve Oelrich asked the committee to temporarily put it aside, fending off the panel possibly killing the measure. That would have put an end to the possibility of outlawing the cafés for the rest of the session.

(more…)

Scott tells lawmakers to shutter Internet cafés: ‘I don’t believe in it.’

Wednesday, January 18th, 2012 by Dara Kam

Gov. Rick Scott said this morning he wants lawmakers to outlaw Internet cafés rather than regulate them as Senate leaders are proposing.

“I don’t believe that the Internet locations are legal or should be legal,” Scott told reporters this morning. “It’s an area that I think doesn’t make sense. I don’t believe in it.”

A House committee passed a measure banning the “casinos on the corner” yesterday but the Senate appears to favor a proposal that would regulate the cafés which operate as “sweepstakes.” Customers pay for Internet time, which they can use to browse the Web or play the games in which computer time or credit is won. Critics say the games are highly addictive and prey on the poor.

Palm Beach County commissioners recently issued a moratorium blocking any new cafes from opening in unincorporated areas.

Scott rejected suggestions that the games are not as bad as the Lottery. Scott’s administration wants the Lottery to sell more tickets this year to help pay for public schools. Scott said the state authorized the Lottery years ago.

“It generates money for our schools. We’re not going to change that,” he said.

House committee approves ban on Internet cafes

Tuesday, January 17th, 2012 by Dara Kam

A measure banning Internet cafes in Florida cleared its first hurdle in the Florida House over the objections of two Palm Beach County Democrats and setting up a stand-off with the Senate that wants to regulate the “casinos on the corner.”

Lawmakers need to shutter the cafes because they prey on the poor and elderly and are highly addictive, said bill sponsor Rep. Scott Plakon, R-Longwood.

Plakon also cited reports showing that welfare recipients are using state-issued debit cards to at ATMs at the facilities to underwrite their gambling habit.

Lawmakers can pass his bill (HB 3), do nothing or regulate the facilities, which could cost the state $200 million a year by invalidating a deal Florida has with the Seminole Indians, Plakon said.

“The regulation bill would be the effect of us authorizing 1,000 gambling locations in this state,” Plakon said.

To help persuade the Business and Consumer Affairs Committee to support his bill, Plakon pointed to a San Francisco newspaper that pilloried Florida lawmakers for failing to shut down the cafes.

“This is San Francisco laughing at us,” Plakon said. “San Francisco, mind you members, is laughing at us.”

Cafe customers purchase Internet time, which they can use to browse the Web or play free “sweepstakes” games, in which computer credit or time is won. Those credits can be redeemed for cash.

Palm Beach County commissioners recently issued a moratorium blocking any new cafes from opening in unincorporated areas.
Industry backers say shutting the cafes down would put thousands of workers in the unemployment line.

“What strikes me is the jobs. It seems like some funny, fuzzy math but there are thousands, possibly tens of thousands of jobs at risk,” said Rep. Joe Abruzzo, D-Wellington, on the losing side of a 10-5 vote.

Rep. Mack Bernard, D-West Palm Beach, voted against the measure but said he was troubled by the bill needed more information about the ability the use of welfare money at the cafes.

“This is one of the sickest votes I’ve taken since I’ve been here,” Bernard said.

‘Johnny’ and ‘Twiggy’ make the pitch to end greyhound racing

Tuesday, January 17th, 2012 by Dara Kam

"Johnny"

A pair of greyhounds did the marketing this morning for activists in the Capitol pushing an animal-friendly agenda.

Sen. Maria Sachs, D-Delray Beach, and Rep. Dana Young, R-Tampa, had “Johnny” and “Twiggy” on hand at a press conference for their proposal to allow dog tracks to keep their card rooms and other gambling activities but put an end to greyhound racing.

Sachs, whose district is home to the Palm Beach Kennel Club, said the state needs to quit subsidizing the dying industry and allow the pari-mutuels to stop the dog races that have become just an excuse to offer more lucrative poker games.

And, the bipartisan pair said, their “decoupling” bills (SB 382, HB 641) will put an end to the inhumane treatment of some greyhounds at smaller tracks. The pari-mutuel industry also supports the measures.

“It’s just not where we’re at as a people anymore,” Sachs said.

A similar proposal died on the last day of last year’s session over a dispute about tax breaks for the dog tracks, including PBKC.

The Humane Society of the United States, the ASPCA and GREY2K USA are also backing a measure (SB 488, HB 527) that would allow counties to charge an extra $10 for animal cruelty fines and let the money be spent on spay and neuter programs.

The animal rights groups are opposing a proposal (SB 1184, HB 1021) dubbed the “ag gag” bill that would make it a crime to take pictures or video of agricultural property.

Bondi, state regulators say no to slots at Gretna and raise doubts about Palm Beach

Thursday, January 12th, 2012 by Dara Kam

State regulators won’t give a Panhandle horsetrack permission to have slot machines without legislative approval or changes to the state constitution based on an opinion issued by Attorney General Pam Bondi on Thursday.

Her non-binding opinion also puts in doubt a local bill Palm Beach County and the Palm Beach County Kennel Club are seeking to get slots approved at the dog track. A referendum on the slots will go before county voters in November.

Bondi issued the opinion in response to a question from state gambling regulators regarding Creek Entertainment Gretna racetrack in Gadsden County. Voters there and in Washington County will decide on Jan. 31 whether they want to allow their local pari-mutuels to offer slots, something the Gretna owners are banking on.

But Bondi said the referenda would only be valid if they are first authorized by the Legislature or in the state Constitution, and Department of Business and Professional Regulation officials said they would comply with her opinion.

Lawyers for PBKC and the Gretna track rejected Bondi’s opinion, accusing her of being biased against the slot machines and promising that the courts will ultimately decide on the issue.

“This is not the first time, nor will it be the last, that an Attorney General has opined, for political issues, on a gambling issue outside of their authority,” attorney Marc Dunbar, one of the owners of the Gretna track, said in a statement. “Fortunately the Supreme Court has ruled on many occasions that these advisory opinions have no binding affect and more times than not are eventually rejected by Florida courts. I look forward to meeting her in court where law, not politics, will ultimately decide the issue.”

Casino bill still stalled in House

Wednesday, January 11th, 2012 by Dara Kam

The gambling bill that would allow three casinos to open in Florida remains stalled in the House after a second workshop on the proposal Wednesday afternoon.

And it remains unclear whether the controversial proposal will even get a vote in the House Business and Consumer Affairs Committee.

House Business and Consumer Affairs Committee Chairman Doug Holder said he’s still in the information-gathering stage and is not sure whether the bill (HB 487) will even get a vote in his committee or what the next move is.

“That could entail another workshop. It could entail ending the discussion. It could entail a vote. It just depends on how comfortable we feel. Certainly at this point we’ll digest all the information we just received,” committee chairman Doug Holder, R-Sarasota, said after about an hour of testimony late Wednesday afternoon.

The committee heard from proponents of the measure, including casino operators eager to set up shop in Florida, and split business industry lobbyists who spoke both for and against it.

A Senate committee gave Sen. Ellyn Bogdanoff’s version (SB 710) its first thumbs-up on Monday. Senate President Mike Haridopolos, R-Merritt Island, had fast-tracked the bill and is still insisting that he wants the bill to get a vote by the full chamber.

But the proposition is in limbo. Senate Rules and Calender Committee Chairman John Thrasher, R-St. Augustine, opposes the bill and said he wants to wait to see what the House does before he takes it up in his committee.

Holder said his chamber isn’t taking its cues from the Senate.

“We’re going through the process in our way. We realize it’s a little bit slower than the pace of the Senate but we are going to vet this fully before making any final decisions,” Holder said.

GOP leaders – including all three Cabinet members – have lined up with social conservatives, law enforcement officials, the Florida Chamber of Commerce and the Florida Restaurant and Lodging Association in opposition.

Associated Industries of Florida, the Florida United Businesses Association and the construction industry are all pushing the casinos, promising that the high-end “destination resorts” will create thousands of new jobs and pump untold millions into the state’s anemic economy.

And the state’s existing pari-mutuels are flexing their considerable muscle with demands for equity in taxes and games as the proposed casinos, creating the possibility of roulette, craps and blackjack far beyond the South Florida area targeted by the bill’s sponsors.

On Wednesday, casino operators tried to dispel fears that the casinos will transform the Sunshine State’s family-friendly image into a Las Vegas or Atlantic City gambling mecca.

(more…)

Business lobbies launch dueling gambling ads

Tuesday, January 10th, 2012 by Dara Kam

Split business groups have upped the ante in the fight over a proposed gambling bill that would allow three mega-casinos in Florida.

The competing lobbies launched a pair of dueling television ads lauding and condemning the measure (SB 710), which cleared its first hurdle in the Senate Regulated Industries Committee yesterday.

Associated Industries of Florida, which favors the measure, unleashed an ad featuring pundit Ben Stein touting the casinos as a job creator and economic panacea.

On the other side, the Florida Chamber of Commerce’s “Bad Bet for Florida” condemned the proposal, which its leaders say would harm the state’s existing businesses and chase tourists away.

Lawmakers give casinos bill first thumbs-up

Monday, January 9th, 2012 by Dara Kam

A sweeping gambling bill that would allow up to three casinos in Florida passed its first hurdle late Monday with a 7-3 vote in the Senate Regulated Industries Committee.

The measure (SB 710) would allow voters in any county to sign off on the “destination resorts” and allow pari-mutuels in to have whatever games the casinos offer, including blackjack and baccarat – if state regulators grant a casino permit in the county. And it would bar any new dog or horse tracks or jai-alai frontons from opening anywhere in the state.

Sen. Ellyn Bogdanoff, the bill’s sponsor, acknowledged that the future of her proposal – dealing with everything from a new gambling commission to the casinos to Internet cafes – is anything but certain.

“Yeah, this is a big lift and there’s a lot of stuff in here. Call it what you want. Call it an expansion. Call it a reform. Call it a redirection…My hope is that we would stop the proliferation of gaming through clever lawyering or loopholes,” Bogdanoff, R-Fort Lauderdale, said before the vote.

Senate President Mike Haridopolos appeared to have fast-tracked the bill – it received its first committee vote the day before the legislative session opened – and said he wants an early floor vote on it. But that may not happen, said Sen. John Thrasher, chairman of the Rules and Calendar Committee, the bill’s final stop before it goes to the full chamber. First, it heads to the Senate Budget committee.

But the House has yet to hold a single hearing on its version, Thrasher pointed out.

“They have not had the first peep over there in terms of listening to the arguments about this bill,” Thrasher, R-St. Augustine, said. “I’ve got a feeling that…they’re going to have to show some movement in the House before we take it any further.”

Gambling bill rewrite tweaked. Changes tax rates, keeps Internet cafes alive and stays out of barrel racing brouhaha

Friday, January 6th, 2012 by Dara Kam

Sen. Ellyn Bogdanoff‘s latest rewrite of a sweeping gambling measure includes a few major changes but keeps intact the voter approval required for three casinos anywhere in the state and still would allow for Florida’s existing pari-mutuels to offer Las Vegas-style slot machines, again if voters give the thumbs up.

But Bogdanoff, R-Fort Lauderdale, does make one big change in the 170-page amendment filed late Friday afternoon – instead of completely doing away with the “Internet cafes,” it would regulate them. The so-called “casinos on the corner,” operating now as sweepstakes games, would have to register with the state’s new gambling department (also included in her strike-all amendment), put up a bond and certify that the games comply with laws already on the books. A draft version of the measure released two weeks ago would have outlawed the Internet cafes that critics say prey on the poor. Palm Beach County commissioners voted yesterday to ban new Internet cafes from popping up in unincorporated areas.

The new version of the bill (SB 710) would still allow the state’s existing dog and horse tracks – including Palm Beach Kennel Club – and jai-alai frontons to offer slots if voters approve. But instead of having to spend $100 million to upgrade their facilities in exchange for the slots, the pari-mutuel operators would have to pay a one-time $125 million licensing fee.

The catch-all bill also does away with the tax parity the racinos in Miami-Dade and Broward counties had hoped for. Now, the South Florida pari-mutuels would have an 18 percent tax rate on slots – down from the current 35 percent – but not until the proposed casinos are up and running. The casinos would pay a tax rate of 10 percent.

Unlike Bogdanoff’s recent draft, her latest proposal does nothing about barrel racing, now an authorized racing format at a Panhandle track and under consideration at another. Gov. Rick Scott has asked lawmakers to specifically address barrel racing, saying he does not believe the legislature intended to permit it. Her new measure also would not buy back four pari-mutuel permits but it would bar any new pari-mutuel licenses from being issued after July.

The Senate Regulated Industries Committee is slated to vote on her bill Monday afternoon, the day before the 2012 legislative session officially begins.

Scott: Lawmakers need to shut down barrel racing, slots

Wednesday, December 21st, 2011 by Dara Kam

Gov. Rick Scott is calling on lawmakers to quickly close what he called a gray area in Florida law that allowed a Panhandle racetrack to get a permit for barrel racing and a card room and opened the door for slot machines.

Scott also for the first time said he doesn’t believe lawmakers meant to include as a legitimate gambling activity when they passed laws regulating pari-mutuels.

“It doesn’t appear to me that it was the intent of the law. They need to clear it up,” Scott told The Palm Beach Post this afternoon.

Scott’s Department of Business and Professional Regulation issued the quarter horse permit to Gretna Racing – owned by the Alabama-based Poarch Creek Indians and gambling lawyers David Romanik and Marc Dunbar – last month. Regulators believed there was nothing in Florida law allowed them to deny the permit, now being challenged in court.

Lawmakers need to put an end to the uncertainty over the barrel racing and possible spread of it to other facilities – a track in Hamilton County has applied for a barrel racing permit – Scott said.

“It’s not fair to people who invest their dollars. It’s not fair to people who are supposed to enforce the law if the law’s not clear. So the legislature ought to clear it up whether that’s allowed or not,” He said.

Scott said he wants the legislature to act quickly before voters in Gadsden County, where the Gretna track is located, go to the polls on Jan. 31 to vote on a referendum allowing slot machines at the casino.

Voter approval of the referendum could threaten the state’s agreement with the Seminole Indians and cost Florida the $225 million the tribe gives annually. That agreement requires that slot machines be limited to pari-mutuels in Broward and Miami-Dade counties. Slots at tracks elsewhere in the state could blow up next year’s budget which relies on the Seminole cash, Scott said.

“By not doing something, they’re making a decision that will put the Seminole compact at risk. I think they ought to clear it up ahead of time,” Scott said.

Sheriff’s office, Seminoles dispute Bondi casino ‘money laundering’ claim

Thursday, December 15th, 2011 by Dara Kam

The Hillsborough County Sheriff‘s Office says it hasn’t investigated any links between drugsters and money laundering at Tampa’s Hard Rock Hotel & Casino, contradicting a claim made by Attorney General Pam Bondi last week.

“According to Chief Deputy Docobo, one of our detectives had a personal conversation with the Attorney General at a private function regarding money laundering in casinos. However our office has not conducted any investigation involving money laundering at casinos, nor do we have any official information that this type of criminal activity is/has occurred in Hillsborough County,” the sheriff’s office said in a statement.

Bondi joined other anti-gambling forces at a press conference last week to publicly denounce a “destination resorts” proposal that would allow three casinos to open in the state. “Many money laundering cases” related to the casino, owned by the Seminole Tribe of Florida, was one of the reasons Bondi gave for opposing the bill (SB 710).

The Sun Sentinel’s Nick Sortal blogged about the money laundering dispute:

But Bondi says that’s what she was told, and her office issued this statement Wednesday:

“At a charitable event on Nov. 12, I spoke with a deputy from the Hillsborough County Sheriff’s Office regarding the gambling issue. I was absolutely told that in many of the last drug trafficking cases that they made, the money was laundered at the casino.”

Seminole Tribe Chairman James Billie had a blistering response to Bondi’s accusations in an op-ed slated to run in the tribe’s newspaper later this month.

“As long as I have been Chairman, since way back in 1979, and during the years I was out of office, I have never seen any information, whatsoever, come across my desk about money laundering,” Billie wrote. “In all these years the Seminole Tribe has conducted Gaming, since 1979, no audit has ever found any fraud, theft, embezzlement or large variances of any kind.”

The dispute over money-laundering puts the AG and the tribe at odds even though they’re both on the same side in opposing the bill.

“I am very disappointed to hear one of our top Florida government leaders come forward with such a statement that is so damaging to the reputation of the Seminole Tribe of Florida without checking its accuracy or even contacting us for our comments,” Billie said in his column.

Anti-gambling forces rake in Bondi support

Thursday, December 8th, 2011 by Dara Kam

Count Florida Attorney General Pam Bondi among anti-gambling forces fighting a proposal to allow three casinos in the state.

Bondi will join a noon press conference hosted by “No Casinos” today, her office announced in a press release this morning.

Even without Bondi’s opposition, the “destination resorts” bill sponsored by Sen. Ellyn Bogdanoff and Rep. Erik Fresen is facing an uphill battle.

The Senate Regulated Industries Committee wound up its second workshop on the proposal (SB 710) yesterday, logging nearly six hours of testimony in the two meetings.

Near the end of yesterday’s discussion, committee chairman Dennis Jones, who supports the plan conceptually, expressed frustration.

“It seems like more questions are arising every week that we don’t have answers to,” Jones, R-Seminole, said.

Senate Rules Chairman John Thrasher, whose committee has to sign off on the bill before it heads to the Senate floor, blasted the measure during yesterday’s meeting.

“I think this legislation is a major change in the culture and brand in the state of Florida and frankly I think it expands gambling to the point where I am concerned about it,” Thrasher, R-St. Augustine, said during yesterday’s meeting.

Bogdanoff, R-Fort Lauderdale, insists that her bill allowing the three high-end casinos and creating a statewide gambling commission won’t grow gambling in the state but will enable the state to establish a “strategic vision” for gambling.

But she acknowledged she’s got her work cut out for her. Bogdanoff, whose district includes part of Palm Beach County, compared her goal to overhaul gambling in Florida to former Gov. Jeb Bush‘s education reforms.

“It was a holistic view and everybody bought into it,” she said. “I don’t have a popular governor advocating at that level. I’m just a lowly senator from Palm Beach and Broward County.”

Gov. Rick Scott has not said whether he supports the proposal, but has said he does not want the state to be dependent on taxes generated by the casinos.

State economists to meet again next week on casino proposal

Friday, December 2nd, 2011 by Dara Kam

Just how much money three new casinos might bring to the state remains unclear after state economists spent hours struggling to settle on an amount.

The state Revenue Estimating Conference, made up of economists representing the legislature, Gov. Rick Scott and state agencies, took a second swipe at an estimate on Friday but agreed to meet again next week to try to finalize the numbers.

“I think we’re getting close to getting numbers that we could all agree to and feel comfortable with that we could end up adopting next week,” the legislature’s chief economist Amy Baker told reporters late Friday. “People want to think about a couple parts some more. There’s about 16 different piece of the bill that affect revenues and state revenues in one shape or fashion. There are a lot of moving parts behind those but I think we’re getting very close to a product that we can all agree to.”

Proponents of the “destination resorts” measure, including sponsor Sen. Ellyn Bogdanoff, R-Fort Lauderdale, contend the casinos will bring an economic boom to the cash-strapped state. Her plan (SB 710) requires potential casino operators to spend at least $2 billion to develop and build facilities aimed at attracting high rollers from around the world.

The state economists did agree that the three casinos would bring in at least $350 million over four years in taxes, the bulk of that coming from collections related to construction and equipment. The estimators also debated how much money visitors would spend and how many new tourists the casinos might bring to Florida.

Casino kingpin calls BS – during committee meeting – on gambling critics

Wednesday, November 16th, 2011 by Dara Kam

Colin Au, president of Malaysian-based gambling giant Genting America, made big promises to lawmakers during a Senate Regulated Industries workshop on Sen. Ellyn Bogdanoff’s proposal designed to allow up to three casinos in South Florida.

Three casinos in Miami-Dade County could ring up $1.7 billion a year for the state’s cash-strapped coffers, Au said. The high-end resorts would also create 100,000 jobs in a state where the unemployment rate is hovering near the double-digits, Au pledged. Not just any jobs, either, the Malaysian native announced.

“They are good-paying jobs. They work in air-conditioned facilities. They wear uniforms,” Au stated.

Au’s stats raised a few eyebrows, but not as many as his frank dismissal of critics’ contention that the jobs would be snapped up by out-of-state workers already employed at casinos in Atlantic City or Las Vegas.

“That’s bullsh–, OK?” Au said, drawing gasps from the standing-room-only committee room.

Au’s use of the profanity is nearly unheard of in the staid halls of the Capitol, but elicited no rebuke from chairman Dennis Jones, R-Seminole, as other chairmen have done in similar circumstances.

And neither Au’s second use of the off-color term when he pooh-poohed allegations that his proposed 5,000-room gambling resort in Miami, where his company has already purchased property, would put other hotels and restaurants out of business.

“That’s bullsh– again,” the heavily-accented Au insisted. “It does not take people’s lunch. It creates lunch, dinner plus breakfast for everyone.”

After the meeting, Bogdanoff said Au oversold her proposal, possibly damaging its chances of passing. His use of the blue language may have been a cultural difference, Bogdanoff guessed.

“You can do that privately. We all kind of sometimes use language that’s inappropriate but I don’t do it, (a) in a public forum or (b) in a committee meeting,” Bogdanoff, R-Fort Lauderdale, said. “I just want him to tone the rhetoric down.”

So long Lottery – hello Department of Gambling?

Tuesday, November 15th, 2011 by Dara Kam


Sen. Ellyn Bogdanoff revealed a new wrinkle in her “strategic vision” plan for gambling – she wants to transform the Florida Lottery department into the “Florida Gaming Commission,” something up until now she thought couldn’t be done.

The Lottery, which brings in about $4 billion a year, is an already-existing executive agency which could be morphed into a statewide gambling commission, Bogdanoff said at a press conference this morning with the Florida Latin Builders Association.

The gambling commission would have the power to grant up to three casino licenses (“destination resorts” in legislative parlance) in South Florida.

Bogdanoff, R-Fort Lauderdale, said the commission could also possibly rein in the Lottery, which she said is “taking money from our citizens and not really doing anything to benefit Florida.”

The money people spend on Lottery tickets would be spent elsewhere and make its way into the state’s general revenue fund anyway, Bogdanoff said.

Bogdanoff, most of whose district is in Palm Beach County, will introduce the latest twist in the casino proposal (SB 710, HB 479) at its first hearing tomorrow morning during a Senate Regulated Industries workshop.

The Hispanic builders are digging the “destination resorts” plan pushed by Bogdanoff and Rep. Erik Fresen, saying it’s just what the gasping construction industry needs.

Noelia Moreno, the organization’s past president, said that the state’s 20 percent unemployment rate in the construction industry is about twice that of the general population.

The legilsative duo’s proposal to build three high-end casinos in South Florida could create 40,000 contruction jobs and 100,000 permanent jobs, Moreno said.

“We need these jobs now. We needed them yesterday. But we definitely need them now,” Moreno said at a press conference joined by Bogdanoff, Fresen and other Latino builders.

Senate to workshop casinos bill next week

Wednesday, November 9th, 2011 by Dara Kam

The Senate Regulated Industries Committee will hold the first of two three-hour workshop on the destination resorts proposal on Wednesday, committee chairman Dennis Jones, R-Seminole, said.

Jones extended the committee’s usual two-hour meeting time to accomodate the dozens of lobbyists on both sides of the issue expected to speak out on the proposal (SB 710). Business and faith groups have lined up against the proposal while gambling operators from Las Vegas to Malaysia have lined up in support.

“There’s a lot of people that want to speak on this bill,” he said.

Jones said he’ll take 20 minutes of testimony each from those who wish to speak on the issue and allow out-of-towners to go first. He said he expects his committee to vote on the bill sometime before the second week of the 2012 legislative session that begins in early January. Expect to see plenty of amendments before the measure makes it to the floor, Jones predicted.

Sen. Ellyn Bogdanoff, R-Fort Lauderdale, is the sponsor of the proposal she says would allow up to three non-tribal casinos to open in Broward and Miami-Dade counties and create a statewide gambling commission. Jones said he thinks her bill is unconstitutional because it would create a monopoly in South Florida with impacts that would be felt in all 67 counties.

The state’s existing racinos – pari-mutuels in South Florida that also offer slot machine gambling – are objecting to the bill’s 10 percent tax rate for the “destination resorts.” The racinos currently pay 35 percent of their revenue in taxes.

Jones said he wants to explore “parity” in taxing and games during the workshops and isn’t convinced the proposed casinos would be getting a better deal under Bogdanoff’s bill.

Casinos would have to agree to invest at least $2 billion in the resorts and are likely to employ 5,000 workers and would be paying $75 million in local property and school taxes, Jones said. Meanwhile, the seven racinos in Broward and Miami-Dade only pay about $2 million in property taxes combined, he said.

“I think it’s a wash,” Jones said. “But that will be one of the things we’ll have to work out in the workshops to see how people feel.”

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