UPDATE: Florida Destination Gambling Bill Essentially Dies in the House

Casino Watch Focus reported that the Mega Resort Gambling bill had taken its first step in the Senate by being voted out of a committee.  It still needed to travel farther in the Senate, but it was assumed the bill would stall in the House.  The bill must pass through both sides of the legislature on its path to become law.  If the bill fails in one chamber, it wont pass during that years legislative session.  The Florida Independent is reporting  that the bill has been pulled by the author, Rep. Fresen, in the house:

State Rep. Erik Fresen’s request at a House subcommittee meeting in Tallahassee today to temporarily postpone his bill to allow Las Vegas-style casinos in South Florida essentially killed the bill for the 2012 legislative session.

After 90 minutes of debate, Fresen said, “To the extent that I have been around this process long enough” and “having the ability to read the tea leaves and recognize where this bill is headed in this committee … I would in a very friendly manner ask through chair Holder to temporarily postpone this bill as we continue to workshop it.”

State Rep. Doug Holder, R-Sarasota, responded, “Before we make that decision Rep. Fresen I want to be really clear this is the last time that this subcommittee will meet” during the 2012 session, adding,”in other words, there will be no opportunity to hear this bill before the 2013 session convenes.”

 Rep. Fresen pulled the bill.  One small possibility does exist to  bring the bill back up in the 2012 legislative session.  The Miami Herald explains the possibility:

After a lengthy debate, the House Business and Consumer Affairs and subcommittee stopped short of killing the bill to bring three so-called destination resorts to Florida but, by failing to take a final vote on the measure, left it on life support.

After working for weeks to muster the votes on the 15-member committee, Rep. Erik Fresen, R-Miami, couldn’t get a majority. He asked the committee to postpone a vote, leaving it in indefinite limbo under House rules. The only opportunity to revive it is if the House takes up a similar Senate bill.

The Senate bill has stalled, as they were waiting to see how the House would react.  It seems very unlikely that they will waste the time to try to push their version of the bill through, now knowing that the house version couldn’t even make it out of a committee.

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UPDATE: Florida Gambling Bill’s Fierce Opposition Causes 170 Page Rewrite by Senator Bogdanoff

Casino Watch Focus reported that the Coalition to oppose the Florida destination casinos bill had grown to an impressive level when top Florida Cabinet members Bondi, Putnam, and Atwater joined the fray.  Now that the short, 60-day legislative session has begun, the clock is ticking on the bill’s supporter, Senator Bogdanoff, to get the votes necessary to pass the legislation.  The Tampa Bay Times is reporting that the uphill battle has caused Senator Bogdanoff to rewrite the bill in a desperate hope to get support:

Senate sponsor Ellyn Bogdanoff last week released a 170-page rewrite of the bill to help take pressure off reluctant lawmakers by including a requirement that any county — including Miami Dade or Broward — that wants to attract one of three mega resorts must first get voter approval.

To win over supporters of the existing pari-mutuels, the revised bill allows them to operate Las Vegas-style games and receive a lowered tax rate if they compete directly with the new casinos. And across the state, any struggling horse and dog tracks and jai alai frontons would be allowed to ask voters to let them install slot machines.

The bill also attempts to win over gaming opponents. Bogdanoff, a Fort Lauderdale Republican, and House sponsor, Rep. Erik Fresen, R-Miami, would ban new pari-mutuel permits, regulate or close internet cafes and set up a strict new regulatory structure. The state would create a new “Department of Gaming Control” to administer and license the casino resorts and regulate the pari-mutuels and card rooms.

The bill has the effect of expanding gambling even more under the guise of allowing public choice.  The best chance for the bill to gain early traction appears to be in the Senate.  The Tampa Bay Times explains:

There is no guarantee these changes will assuage critics when the bill comes up for its first vote in the Senate. But the bigger test is in the House, where a conservative Republican majority and a presiding officer, whose home territory includes Disney World in Orlando, are reluctant to open the door to anything that could harm the state’s family-friendly tourism image. One thing is certain about the looming legislative debate over gambling: It will be an epic battle in Tallahassee.

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Top Florida Cabinet Members Join in Opposition of Proposed Destination-Casinos

Casino Watch Focus reported that a diverse group of individuals and groups were standing strong in their opposition to the Destination Casinos bill introduced by  Senator Ellyn Bogandoff.  The more mainstream groups that oppose expanded gambling include Disney, The Florida Chamber of Commerce, The Florida Hotel and Lodging Association, and The Florida Attractions Association.

Joining them is a coalition anti-gambling groups such as the No Casino, the Florida Baptist Convention, the Florida Catholic Conference, Florida Casino Watch and Florida Family Action.  The Florida Council on Compulsive Gambling not only provided the statistics for current gambling issues, but they also went as far as to say that the state’s policymakers shouldn’t expand  gambling until it gets its house in order.  If that collective opposition wasn’t representative enough of those in Florida, now all three of the Florida Cabinet members have come out against these Vegas-style destination casinos.  The Palm Beach Post reports:

Attorney General Pam Bondi and Florida Agriculture Commissioner Adam Putnam joined forces Thursday with a coalition of law enforcement officers, social conservatives and business lobbyists determined to kill a proposal to allow three more casinos in Florida.

The pair are the state’s highest-ranking GOP officials to publicly oppose the “destination resorts” bill now working its way through the state legislature. A spokeswoman for Chief Financial Officer Jeff Atwater, the third member of the Florida Cabinet and also a Republican, said later that he opposes the measure, too.

That leaves Gov. Rick Scott as the only executive wild card. Scott has not taken a firm stance on the measures (SB 710, HB 487), although he has repeatedly said he does not want the state to become dependent on revenues generated by the casinos. He also has said he doesn’t want a casino going into a county unless voters there approve first.

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Anti-Gambling Groups Ask to Join Florida Supreme Court Case

Casino Watch Focus reported that the appellate court decision that lead to the new “destination casinos” debate had been appealed to the Supreme Court.  The case has incredible implications toward the future of gambling expansion.  As such, other groups are looking to join the legal side making the appeal.  The Orlando Sentinel explains:

No Casinos has asked the Supreme Court to allow the anti-gambling group to join a case over whether Hialeah Racetrack can have slot machines, by filing briefs in support of Calder Race Course.

The Orland-based group was joined by the Florida Chamber of Commerce, the Florida Restaurant and Lodging Association and the Florida Attractions Association. None of the four groups had sought to intervene when the case was heard by a Tallahassee circuit judge or the 1st District Court of Appeals, so the justices will have to give them permission to intervene now.

Calder, supported by other South Florida pari-mutuels, is contesting a 1st DCA ruling that allows slots at Hialeah Racetrack and permits the Legislature to expand gambling instead of requiring voters to approve all gambling expansion projects.

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UPDATE: Gambling-Expanding Slot Case is being appealed to the Florida Supreme Court

Casino Watch Focus reported that  an appellate court upheld a ruling that would allow the Florida legislature to expand gambling in the state without a vote of the people. Given the case involved the constitutionality of legislation to expand gambling, it has been assumed that an appeal to the Supreme Court would be filed. Now, The Associated Press is confirming those assumptions:

An appellate court decision that said the Legislature can approve slot machines anywhere in the state is being appealed to the Florida Supreme Court.

If allowed to stand, that ruling would allow lawmakers to permit destination casino resorts in Florida. Bills have been filed for the 2012 legislative session, which starts Jan. 10, to license three such resorts in South Florida.

The casino legislation is being opposed by some on moral grounds as well as competing interests. Tourism-related businesses such as Walt Disney World also are lining up against casinos because of the fear they’ll tarnish Florida’s family-friendly image.

This appeal is simply the first step.  The Florida Supreme Court must first decide to hear the case.  It is believed that given the magnitude of the case’s implications, the Court will do so and hear arguments on the case.  The Associated Press continues:

The appellate court ruled the amendment doesn’t prohibit lawmakers from approving slots at facilities other than those that meet the amendment’s criteria. If the Supreme Court takes the case, it will hear two different arguments from Hialeah’s competitors.

Flagler and Florida Gaming say the amendment allows slots only at the seven Broward and Miami-Dade pari-mutuels. That interpretation would bar the Legislature from permitting slots anywhere else including casino resorts.

Calder’s position is the amendment applies only to pari-mutuels. That view would exclude Hialeah but let lawmakers authorize slots at casino resorts because they are not pari-mutuels.

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A diverse mix of Groups Oppose Full-Scale Vegas-Style Gambling in Florida

Casino Watch focus reported that a bill has been introduced in the Florida legislature to expand gambling by allowing mega Vegas-style destination casinos. Key groups immediately came out against this possible gambling expansion including The Florida Chamber of Commerce, Disney and The Florida Hotel and Lodging Association to name a few.  Now, The Miami Herald is reporting that another key group is coming out against gambling expansion:

The board of the association of tourist attractions and parks today announced it will oppose the “destination resorts” casino bill if it moves through the Legislature.

The Florida Attractions Association, which represents public and private tourist sites throughout the state (from the Monkey Jungle and the Miami Science Museum to Tampa’s Lowry Park Zoo), warned that the experience of other states is troubling.

“Less fortunate destinations around the U.S. have sought to increase their market share of tourism by adding casino gambling to their states,” the association said in a press release. “The results have been less than stellar. Promises of economic boom and employment gains are not sustained, and casino gambling has become passé with their proliferation and the passage of time.”

As the economic and tourist driven groups are making their presence known, so are a coalition of religious and other anti-gambling groups.  The St. Augustine Record explains:

A coalition of religious and anti-gambling groups said Tuesday they are launching an aggressive lobbying campaign to convince the Legislature to reject a plan to allow massive luxury casinos in two South Florida counties.

These predominantly religious groups join a growing list of opponents to identical bills (HB 487, SB 710) that permit Las Vegas-style “destination resort” casinos and establish a new state agency to regulate gambling.

Groups such as the Florida Baptist Convention, the Florida Catholic Conference, Florida Casino Watch and Florida Family Action say they oppose any measure to expand gambling because it victimizes poor people, tempts compulsive gamblers, sullies the state’s family-friend image and could harm businesses that rely on tourists.

“We are working to make our message very clear to legislators that it is unconscionable to vote for a change that will negatively affect thousands of families in our state,” said Mark Andrews, chairman of Florida Casino Watch.

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Much-anticipated Casino bill filled in the Florida Legislature

Casino Watch Focus reported that an appellate court ruling in Florida opened the door to the Legislature to pass gambling expansion legislation without a direct vote of the people.  It has been anticipated that a bill would be introduced to allow major destination casinos.  Now the Sun Sentinel online explains:

A long-promised “destination casino” bill was filed Wednesday, allowing three Las Vegas-style operations in Miami-Dade and Broward counties and setting the stage for a full-throttle debate about gambling in Florida.

The bill will be one of the most heavily lobbied pieces of legislation during the 2012 legislative session, which starts Jan. 10. Social conservatives, as well as business and tourism groups, are opposed

Sen. Ellyn Bogdanoff, R-Fort Lauderdale, a prime sponsor along with Miami Republican Rep. Erik Fresen, says the measure (HB 487, SB 710) is an attempt to “begin the conversation” about an industry that’s metastasized in recent years.

HB 487/SB 710 would create a new agency to oversee gambling and it would invite developers to offer plans for multi-billion-dollar destination casinos.  The case can still be appealed up to the Florida Supreme Court.  Even if the appellate court decision is upheld, enough pressure can still be put on the Legislature to vote against this expansion.

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Florida Hotel and Restaurant group is against Las Vegas stytle casino expansion.

Casino Watch Focus has explained that a recent court ruling at the appellate level in Florida has currently paved the way for Florida legislature to pass expanded gambling legislation without a vote from the people.  Key groups immediate came out against this possible gambling expansion.  Casino Watch Focus specifically reported that The Florida Chamber of Commerce, Disney, the Orange County Sheriff and No Casinos Inc were among the original voices to speak out.  Now the Florida Restaurant and Lodging Association has come out against expansion as well.  The Orlando Sentinel explains:

The Florida Restaurant and Lodging Association released an overview of its legislative priorities for the 2012 legislative session and among them is the defeat of the destination casino bill.

“Florida is considered one of the most family-friendly destination locations in the world,” a release from the group outlining the priorities reads. “Should we gamble our decades of work to build our wholesome reputation on the risky proposition that those big spending foreign gamblers will solve our economic problems?”

The court ruling could still be challenged to the Florida Supreme Court.  However, if the ruling stands and legislators can pass bills without a vote of the people, they would be wise to remember that they still represent the people and their reelection ability will hinge on such representation.  An online source revealed that only 20% of Florida voters support expansion of gambling:

While some politicians and lobbyists in Tallahassee seem mesmerized by the neon lights and garish glitter of high-stakes casino gambling, an overwhelming majority of likely Florida voters either want gambling scaled back or left as is.

“Voters know that more gambling never lives up to the promises made by gambling interests,” said No Casinos President John Sowinski. “The Florida Lottery was supposed to save education – It did not. Slots in Dade and Broward were supposed to pay big dividends to schools – They have not. Now a Malaysian gambling conglomerate and Las Vegas casino giants are making even bigger promises. Florida voters are smart enough to see through their smokescreen.”

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Florida Chamber of Commerce, Disney and others oppose casino expansion in Florida

Casino Watch Focus reported that  a recent court ruling at the appellate level in Florida is paving the way for Florida legislature to pass expanded gambling legislation without a vote from the people.  As has been reported in the past, many Las Vegas companies are hoping to bring full scale destination gambling resorts to Florida.  Now that the Vegas companies are one step closer to achieving their goal, many key groups are standing up against gambling expansion and casinos in specific. The Orland Sentinel explains:

The Florida Chamber of Commerce is among those lining up against a destination casino bill that could bring three Las Vegas-style resorts to South Florida. The Chamber, along with representatives of Walt Disney World, No Casinos, Inc., and Orange County Sheriff Jerry Demings met with the Orlando Sentinel editorial board Thursday to talk about its opposition to gambling.

Wilson said that, for the past decade, he and chamber members have been trying to build Florida’s “economy of the future” by diversifying the state’s range of employers and attracting higher-paid, higher-tech jobs. All of this, he said, could be endangered by the growth of what he called ”commercial casino gambling.”

The Florida Chamber of Commerce practices what it preaches as well. As is common with gambling interests, they sent money to the Florida Chamber in hopes of gaining their support.  The Chamber went on record that they weren’t interested.  The Miami Herald explains:

Florida Chamber President Mark Wilson went to great lengths to say Thursday that his organization had refused to accept checks from gaming interests. “We’ve returned their checks. You cannot buy our support,” he told the Orlando Sentinel editorial board. “My organization is not willing for a minute to risk the future of Florida for a quick buck. … Commercial casino gambling is one of the biggest threats to the future of Florida that is on the drawing board right now.”

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Florida Supreme Court will have Major Impact on Destination Gambling

Casino Watch Focus has reported on the ongoing attempt to bring full scale Vegas-style destination casinos to Florida.  The last attempt resulted in a pass in the Senate but it went on to stall in the House. The assumption by the legislature has been that they have free reign to pass legislation to expand gambling without the will of the people because of a circuit court ruling.  Now, an online source is reporting that a Supreme Court case will rule on the case and potentially push would be casino companies out of Florida:

Las Vegas Sands has been at the forefront of the lobbying efforts to expand gambling in Florida to include destination casino resorts. Now, all of the lobbying efforts could hinge on one court ruling. The ruling is expected to decide whether or not the Legislature has the right to authorize casino resorts without the input of the public. If a constitutional amendment is needed, it would likely mean the end of the lobbying efforts in Florida. LVS lobbyist Nick Larossi has already admitted that if the ruling comes down against the current situation, the company would likely close up shop and move on from the idea of Florida as a destination for their future endeavors. The end result may not be known until the case reaches all the way to the Florida Supreme Court.  

Even if the Supreme Court allows the Legislature to expand gambling, there would still be a number of hurdles before full scale destination gambling becomes reality.  The Sun Sentinel Online explains:

Sen. Dennis Jones, R-Seminole, who chairs the Senate Regulated Industries Committee, the stopping point for any gaming legislation in the Senate, said he has gotten no indication from Gov. Rick Scott over whether he would even sign a destination casino bill and said he is unsure if he will again offer legislation. “I’m still kind of holding my cards if I’m going to file,” he said. In the House, Rep. Erik Fresen, R-Miami, has been working on a sweeping gaming bill that would limit destination casinos to South Florida and set up a gaming commission to regulate the industry.

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Florida Destination Gambling bill makes a last ditch effort in the Senate, but stalls in the House

Casino Watch Focus reported that two Florida State Senators, Dennis Jones and Maria Sachs, filed legislation to allow five destination casinos throughout the state.  The bill was immediately opposed by the pari-mutual industry and the Seminole Tribe was quick to point out that if the bill passed, they would no longer be obligated to pay the state $250 million a year for five years.  After some intense political pressure and a key amendment, the Senators pulled the bill.  Now, The Orlando Sentinel is reporting that a new last ditch effort is being made to push Destination Gambling:

A measure by Sen. Oscar Braynon, D-Miami Gardens, would attempt to  bring Las Vegas-style gaming to Florida in the form of huge destination  hotels like Las Vegas Sands or Wynn Resorts. The bill passed the Senate  Commerce and Tourism Committee Tuesday, but over the objections of  several committee members who said there were still many problems with  the legislation.

“I think it’s a sad day in Florida when we’ve decided that the way  we’re going to fix our economy is to expand gaming,” said state Sen.  Anitere Flores, R-Miami.  Lawmakers who supported the bill in the committee said it still  needed many changes though before it would be acceptable for a full  chamber vote.

Even if the Senate measure were to pass, a companion bill would need to clear the House.  The Orlando Sentinel points out that the leadership in the house would not be inclined to pass the pro-gambling bill:

A House companion measure effectively stalled after it was assigned to a committee that House Speaker Dean Cannon, who is anti  gaming, later disbanded, meaning its chances of becoming law are still  slim.

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UPDATE: Florida Destination Gambling Bill Dies After Intense Political Pressure and a Key Amendment

Casino Watch Focus reported that two Florida State Senators, Dennis Jones and Maria Sachs, filed legislation to allow five destination casinos throughout the state.  The bill was immediately opposed by the pari-mutual industry and the Seminole Tribe was quick to point out that if the bill passed, they would no longer be obligated to pay the state $250 million a year for five years.  Now The Palm Beach Post News is reporting that political pressure and a key amendment has killed the bill this legislative session:

State Sen. Dennis Jones, R-Seminole, who has spearheaded the Senate’s gaming efforts the past few years, is withdrawing a proposal to bring five “destination resorts” to the state that would have featured full casino gaming.

The decision, in the face of fierce behind-the-scenes opposition from the state’s pari-mutuel industry, likely ends the possibility of any major gambling expansion this year.

Jones’ bill died after Sen. Jeremy Ring, D-Margate, attached an amendment that would have allowed South Florida pari-mutuels to also operate as casinos – with table games and craps in addition to slot machines — with a tax rate identical to any future destination casinos.

Sen. Jones said that his intent was not to see gambling expanded at the pari-mutal level, so he pulled the bill. Even though this bill has failed, there is still time for other similar bills to get passed.  The Palm Beach Post News explained that the odds are not in the casinos favor however:

Backers of destination casinos are still holding out hope. Similar bills have been filed by state Rep. Erik Fresen, R-Miami, and Sen. Oscar Braynon, D-North Miami Beach. But supporters acknowledge they will be a tough sell, particularly in a conservative House that has fought gaming expansion in the past.

Braynon’s bill is set for a Senate committee hearing next week, but the House measure may die in a logistical snafu. The proposal was assigned to a subcommittee that House Speaker Dean Cannon disbanded after its chair, Rep. Esteban Bovo, R-Hialeah, resigned last week to run for the Miami-Dade County Commission. Cannon, who is largely anti-gaming, would need to reassign the bill to a new committee for it to move forward.

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UPDATE: Florida State Senators introduce Vegas Style Casino expansion bill

Casino Watch Focus reported that Las Vegas Sands Corp and Wynn Casinos pitched their idea for Vegas style casinos to the Senate Regulation Industries Committee.  Now an online source is reporting that two Florida State Senators serving in that Committee, Dennis Jones and Maria Sachs, have officially filed legislation that would create destination gambling casinos:

Dennis Jones, R-Seminole, and Maria Sachs, D-Delray Beach, announced the news via a release Friday. Jones is chair and Sachs is vice chair of the Senate Regulated Industries Committee, which gambling falls under.

The legislation would authorize what Jones calls one “destination resort” in each of five districts across the state. Broward and Miami-Dade counties comprise one district. Palm Beach County is part of another, along four counties that neighbor it. The casinos would require approval by local referendum, and the Seminole Tribe of Florida and the state’s pari-mutuels say they’re going to fight it.

This legislation would have an impact on the 2010 agreement between the Florida government and the Seminole Tribe.  The agreement allows the Seminole Tribe to offer blackjack and other table games in their casinos at a payoff price of about $1 billion over five years to the Florida government.  That agreement was based on the Seminoles being the only casinos allowed in the state and destination casinos would void the exclusivity of the agreement, thus costing Florida those funds.  The online article explained that the tradeoff will be a tough sell:

“If the Legislature wants to allow in new entities, it will have to decide if it’s a good tradeoff,” tribe spokesman Gary Bitner said. “Are they going to make enough to make up the assured payments from the tribe?” Until now, gambling in Florida has grown piecemeal. But getting the state, and then the public, to take the leap to full casinos could be a tough sell.

Dick Batchelor, a Democrat from Orlando who served in the Florida House of Representatives for eight years, said he and others feel such an expansion could hurt the state. “We all know it’s about money, but rather than do the right thing and set better priorities; they’re going to the vice industry, and I’m a pretty liberal guy,” he said. “The bottom line is, ‘Is it good for Florida?’ and I would suggest it’s not at all good.

“The ultimate result of this legislation will be a net loss due to the decimation of the pari-mutuel industry and lost revenue from the Seminole compact,” said [John Lockwood of Gunster law firm, who represents a number of pari-mutuel facilities in Florida].

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Possible online gambling in Florida

Casino Watch Focus Reported that New Jersey’s Legislature passed regulations to legalize online gambling.  The move is contingent on the Governor approving the legislation, but it was a step that many believe will encourage other states into adopting similar regulations. An online source is reporting Florida might be one of those state to follow New Jersey’s lead:

While some Florida legislators talk of setting up Las Vegas-style casinos in a few years, others suggest there’s a way to immediately raise gambling revenues with a click of a mouse. They want to allow horse and dog tracks and jai-alai frontons to have portals to online poker rooms, with the state getting a cut of the revenues.

Under the proposal, up to three poker sites would contract with the state as hubs, with the websites of Florida’s 23 pari-mutuels’ card rooms each acting as a portal. To participate, players would click on a pari-mutuel site and go into a pool of other Florida players. The hubs would pull a small piece for each poker pot, called “the rake” in poker parlance, and pass it on to the card rooms. The state would get 10 percent of each card room’s rake, as it does now in brick-and-mortar poker rooms.

If the Florida legislature did push a proposal forward, there would be far reaching gambling expansion implications given the compact with the Seminole Tribe.  Any gambling legalized and allowed by the state, becomes legalized gambling for the Seminole Tribe.

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Las Vegas Casino Companies Pitched plans to the Florida State Government

Casino Watch Focus reported that with Gov Scott’s position on gambling coming into question, Florida State Senator Dennis Jones has put forth legislation to consider Vegas style designation gambling casinos.  Now the St Petersburg Times is reporting that two companies pitched ideas to the Senate Regulation Industries Committee:

Andy Abboud of the Las Vegas Sands Corp. and Michael Britt of Wynn Casinos presented a glossy slideshow of their properties to members of the Senate Regulated Industries Committee. The Las Vegas Sands has been on a two-year crusade to bring its resort-style casinos and convention space to Miami. Miami is “underserved by convention and trade show space,” Abboud said, but added “we’re open to the entire state.”

Under the proposal being pushed by Sands, the state would allow for exclusive operation of five casinos within a 75-mile radius. Voters in each of the regions would have to approve the casino and then a five-member commission would choose which casino operator gets the bid. The casinos would pay a $50 million application fee and be taxed at a rate lower than the state’s parimutuels, which now pay 35 percent of their earnings.

Both companies realize they need Senator Jones’ legislation to pass and they must offer up plans that are far more aggressive and large scale than what the state is allowing currently. As part of their efforts, the companies have increased their political presence by joining key groups and hiring well connected gambling lobbyist:

The Sands has hired six lobbyists and paid an undisclosed amount to become a member of Associated Industries of Florida, whose president Barney Bishop is now lobbying on behalf of destination gambling resorts. Wynn Casinos has hired Al Cardenas and two members of his lobbying team, including Lanny Wiles, a former aide to Gov. Rick Scott. Genting Berhad, the growing Malaysian casino giant, is in negotiations to hire a lobbyist who works with another Scott aide, Chris Kise.

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