Category Archives: Slot Machines

UPDATE: Florida Supreme Court Rules Against County Approved Slot Machine Referendums

Casino Watch Focus has reported on the ongoing efforts to expand gambling through slot machine referendums in jurisdictions where the legislature has not approved them. They key case involved a voter approved referendum in Gadsden County. Creek Entertainment Grenta lawyers claimed that because the people voted for slot machines in their county and there was a facility in the county, a previous rule change by the legislature opened the door for referendums like theirs. The State argued that the legislature must expressly allow a county to have slot machines and no where in the law does it allow for counties to simply vote them into existence. The implications of the case are huge as many counties in the state followed and would try to follow suit. The Florida Times-Union reports:

The Florida Supreme Court on Thursday upheld the state’s denial of slot machine licenses in a county where slots were approved in a voter referendum. The Supreme Court’s unanimous ruling concluded that state law does not allow local referendums in these counties to determine whether slots can be allowed there.

The ruling in the Gadsden County case also affects Duval, where voters approved a slots initiative in November. The state also denied Bestbet Jacksonville’s application for slots licenses at its Arlington facility. Voters in six other counties where slots referendums were approved will also be impacted by the ruling.

The anti-gambling group No Casinos celebrated the ruling. It is also backing a ballot initiative in 2018 that asks Florida voters to further limit the expansion of gambling. “We scored a partial victory with this ruling today and intend to score a complete victory with the Voters in Charge initiative in 2018,’’ No Casinos President John Sowinski said in a statement. “The people of Florida should have the final say on whether or not to legalize casino-style gambling.”

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UPDATE: Judge Could Reconsider Slot Machine Ruling Involving New “Pre-reveal” Style Slot Machines

Casino Watch Focus has reported on a new wave of machines that could drastically change the gambling landscape in Florida. The machines are known as pre-reveal machines and they are basically just slot machines that show the result before the player pulls the handle. This preview screen is why the Judge ruled it was a game of skill and not a game of chance and thus didn’t fall under existing slot machine restrictions and regulations. However, many disagree with such a ruling and are worried that these machines will expand gambling in a terrible way. Now, it appears, the Judge may be open to revising is ruling as the Seminole Tribe has provided some key analysis and motion to the court. Florida Politics online reports: 

Judge John Cooper set a hearing for June 19 in the Leon County Courthouse, court dockets show, after the *Seminole Tribe of Florida asked to intervene. The move also puts a hold on an appeal filed in the 1st District Court of Appeal by the Department of Business and Professional Regulation (DBPR), which regulates gambling. The Tribe**will argue that Cooper’s decision “upends the Compact,” the 2010 agreement between the Tribe and the state for exclusive rights to offer certain gambling in return for a cut of the revenue. That could cost the state “multi-billions of dollars.”

“The court’s decision would lead to an unprecedented expansion of slot machine gambling in the state, destroying the exclusivity that the Tribe bargained for,” says a memo by Barry Richard, the Tribe’s outside counsel in Tallahassee. As one person in Florida’s gambling industry, who asked not to be named, said after the ruling, “I see a giant wave coming … My phone is blowing up from people (at pari-mutuels) who want” pre-reveal games.

In addition to the exclusivity agreement not being taken into account, they are also pointing out the general misunderstanding the Judge faced when rationalizing how the games worked and why it might be skill rather than chance. Florida Politics continues:

In his memo, Richard suggested Cooper misunderstood the game play: “The player is not wagering for the already revealed outcome, but rather on the next outcome, which is unknown.

“Players are not … merely spending money to see spinning reels and flashing lights,” Richard wrote. “Rather, it is a slot machine, with which players are wagering on an unknown, unpredictable outcome” that they may or may not win. Other states, including Indiana and *North Carolina, have found pre-reveal games to be illegal gambling, he added.

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New Slot Machines Could Significantly Expand Gambling in Florida and Damage the Seminole Gambling Compact

Casino Watch Focus has reported on the ongoing gambling negotiations between Florida state and the Seminole Tribe regarding the new gambling compact. The compact impacts the expansion of gambling and the flow of money into state coffers by providing exclusive rights to certain gambling games to the Seminole Tribe at there casino’s in exchange for guaranteed payments to the state. This effectively limits the type of gambling around the state and helps limit it to certain geographic areas. A recent case was already adjudicated in favor of the Seminole Tribe that ruled the Florida Government has violated the exclusivity of the compact by allowing table games at other venues. That issues appeared resolved when an Judge declined the appeal by the state. However, a new issue involving a new type of slot machine has emerged that once again speaks to the issue of expanded gambling possibly violating the compact. The Saint Peters Blog explains:

If it looks like a slot machine, and plays like a slot machine, it’s a slot machine, the *Seminole Tribe of Florida is telling state leaders. An order by a Tallahassee judge, first reported by FloridaPolitics.com, declared that certain slot machine-style entertainment devices aren’t slot machines under state law.

The Tribe disagreed. It now says those games violate a deal between the Tribe and the state, known as the Seminole Compact. That could have “massive consequences costing the Tribe and the State to lose multi-billions of dollars,” according to the Tribe’s recent court filing. In a letter sent last Wednesday to Gov. Rick Scott, Senate President Joe Negron and House Speaker Richard Corcoran, Tribal Chairman Marcellus Osceola said the games were “an expansion of gaming” and a “serious violation” of the compact, which guarantees the Tribe exclusive rights to slots outside of South Florida. 

So what are these machines and why is there a question as to how they are or are not slot machines?   These slot machines are different because they have a “preview” screen. The player presses a preview button and it will show the outcome of the next spin. The Judge rationalized that knowing the outcome means its not a game of change but a game of skill. Those that understand the psychology of what is really going on argue that even though the player knows that move, they still press the button and take the loss or win so they can see if they win big on the play after. They may see that the next pull will lead to a loss, but they gamble that the next pull could be the big win. So its still very much a game of chance as the player is taking a change on the unseen move one ahead. Florida Politics explains the implications: 

Players must “press a ‘preview’ button before a play button can be activated,” the judge’s order explained. The outcome of the next game is always known, thus it’s not a game of skill or chance, he said. You always know you’re a winner or a loser.

*Kathey Bright Fanning*, head of the [Gator Coin] company, said she was “pleased” with the ruling. “It’s all about innovation,” Fanning said.

Whether the innovation in pre-reveal games runs afoul of the Seminole Compact could be a court fight for another day. Some attorneys says pre-reveal is a form of “*electronically-assisted pull-tab game that the Compact says is a “gaming expansion” against its terms.

Nonetheless, “I see a giant wave coming,” said one person in Florida’s gambling industry who asked not to be named. “My phone is blowing up from people (at pari-mutuels) who want these” pre-reveal games.

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GUEST ARTICLE: How the Florida House Gambling Bill is the More Sensible Approach

Casino Watch Focus has reported on the ongoing gambling bills presented in this years Florida Legislature. Its very clear that both take very different approaches to the issue and a guest article published by Florida Politics by NoCasinos John Sowinski, breaks the issues down and concludes the House has the more sensible approach:

There are two things we can count on in Florida. In any given body of water, eventually the alligators will show up. And in any given meeting of the Florida Legislature, the same applies to gambling lobbyists. Feed either and they only become more insatiable.

With regard to the gambling interests, unfortunately, the Florida Senate is setting up a buffet of glutinous proportions. Proposed legislation calls for the biggest expansion of gambling in Florida’s history.

It literally would recreate our state in Nevada’s image, with casinos popping up in communities from the far reaches of the Panhandle to the end of the Everglades.

There would be two new Las Vegas-style casinos in Broward and Miami-Dade, a region already suffering from a glut of casinos. There would be a massive increase in gambling supply there, without a corresponding increase in gamblers, creating a dynamic in which the casinos could only survive by cannibalizing each other’s customers. Even the gambling industry’s own financial experts predict that 95 percent of the patrons would be locals, not tourists.

This type of gambling over-saturation is what brought the industry crashing down in Atlantic City, but not before it eviscerated existing local jobs and businesses from restaurants to retail stores.

But the Senate bill does not stop with more gambling in South Florida. Initially, casinos would spread to eight other counties. That only would be for starters because under Senate Bill 8, every horse track, dog track or jai alai fronton could become a casino.

Getting back to the alligator analogy, what the Senate is proposing is akin to taking 500 bags of marshmallows out into the middle of Lake Okeechobee at midnight and tossing them in the water….

Understanding this, leaders in the Florida House have taken a different tack. They have put forth a bill that fixes weaknesses in existing gambling law, closes loopholes that gambling lawyers continually exploit, stops the proliferation of slot machines throughout Florida, honors Florida’s constitutional restrictions on gambling, and respects the will of the people of Florida, who have consistently rejected statewide expansions of gambling. Finally, it provides for an agreement with the Seminole tribe that would achieve the stated intent of the original Seminole compact — holding the line on gambling and creating a firewall to stop the spread of casinos throughout Florida.

The entire article can be read HERE

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Florida State Sen. President Might Back Voter-Approved Slot Machines Which Could Further Complicate Seminole Compact Negotiations

Casino Watch Focus has reported on the recent voter-approved slot machines measures that could lead to an expansion of gambling in the state. The issue at hand is that the areas where these slot machines were voted on are not areas that the state has approved for gambling. A Florida Supreme Court ruling on the matter will likely clarify an existing and similar case by ruling that gambling expansion in Florida is limited by the constitution and must have approval of the legislature. However, there are signals that the new Florida State Senate President might actual back such voter-approved gambling expansion measures. The Sun Sentinel Explains: 

Voters in Duval and St. Lucie counties last month approved referendums to allow slot machines at pari-mutuel facilities, joining six other counties that had done so earlier. But the lucrative machines have not started whirling in the counties as the gambling industry, regulators and lawmakers watch a case at the Florida Supreme Court and legal issues involving the Seminole Tribe of Florida. At a breakfast meeting Tuesday with reporters, Negron said he thinks the Legislature should follow the will of voters if slot machines are approved in referendums.

There are implications beyond just the two pari-mutuel facilities mentioned. Allowing such expansion could also impact the Seminole Compact negotiations with Florida State as well. The Sun Sentinel continues:

But negotiations about a revised compact also could involve whether the tribe would have exclusive rights to offer slot machines outside of Broward and Miami-Dade counties — and how that would affect the counties where voters have approved referendums. Negron said Sen. Bill Galvano, a Bradenton Republican who is slated to become the next Senate president, will take the chamber’s lead in discussions about the compact. If a deal is reached with the tribe, it would have to be approved by the Legislature. 

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Florida Counties Vote to Expand Slots but Florida Supreme Court Ruling Likely to Prevent Implementation

Casino Watch Focus has reported on the ongoing impact slot machine gambling and its possible expansion has on Florida. Slot machine gambling has long been limited in Florida. Over the years, various Legislative expansions have taken place, as well as locations being legalized by constitutional amendments.   In 2010, the Florida legislature allowed counties to vote for slot machines, but only if prior approval by constitutional amendments or Florida Legislature were obtained. In this year’s election, two counties have voted to expand gambling by way of slot machines, but major hurdles still exist before such expansion can take place. Local Jacksonville Fox affiliate WOKV reports:

A major legal hurdle remains before voter-approved slot machines will be available to play in Jacksonville.

While Duval County voters resoundingly approved 2,000 slot machines for the bestbet pari-mutuel facility in Arlington, the Florida Supreme Court is still determining whether a state statute permits counties outside of South Florida to expand gambling through a referendum.

The referendum – passed with 54 percent support in the Nov. 8 general election – cites a 2004 constitutional amendment allowing slots machines at certain Miami-Dade and Broward County pari-mutuel facilities through a constitutional amendment to mean voters in Duval county have the same right.

Many believe the negative impacts of slot machines weren’t adequately represented during the election, but non the less, the Supreme Court is likely to void the results as prior approval is needed outside of just the county and the Legislature hasn’t approved the venues. WOKV continues:

The group No Casinos, an opponent of gambling expansion in Florida, says only one side of County Referendum No. 1 was represented – through millions of dollars put up by the owners of bestbet. “It’s not a full picture of what happens when slot machines come to a community,” said Paul Seago, referencing the touting of new jobs and government revenue from slot machines by proponents.

Seago believes the Florida Supreme Court will determine slot machines are only allowed in South Florida, per the state statute, or that a constitutional amendment is necessary for expansion of slot machine gaming in the state. Seago’s opposition to slot machines stems from the rejection that this form of gaming brings new revenue to cities. He says, money used on slots is actually taken away from local businesses. In the meantime, slot machines are on hold outside of Miami-Dade and Broward Counties.

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Florida State & Seminole Tribe in Court over Exclusive Gambling Deal and Gambling Compact

Casino Watch Focus has reported on the ongoing nature of the gambling compact between Florida and the Seminole Tribe. They operated under an ongoing exclusive agreement that provided Seminole gambling facilities exclusive rights to table games in exchange for a specified revenue stream to the state of Florida. That deal came to an end and a new compact had to be renegotiated. A new deal was worked between the Seminoles and Florida Gov. Scott, but it was full of extra gambling expansion and provisions that the Florida legislature rejected. The Seminoles and Florida government had been operating in good faith to uphold the exclusivity agreement while payments were being made to the state after the fact, but then they authorized games by other gambling facilities. Now a new trial has taken place that will seemingly be ruled in favor of the Seminoles. The Sun Sentinel online explains:

A three-day trial that could shape the future of gambling in the state ended Wednesday. Attorneys for the tribe maintained during the trial that regulators who work for the Scott administration allowed dog and horse tracks to offer card games and an electronic blackjack game that mimicked the tribe’s casino games. They said that under the initial deal, the tribe would be allowed to keep blackjack for another 15 years if the state allowed someone else to have the same type of gambling.

But attorneys hired by the state disagreed with that assertion and suggested that the tribe was trying to find a way to keep blackjack tables that it is no longer entitled to keep. Top regulators for the state testified that they began to crack down on illegal card operations once they became aware of it.

The judge has not yet ruled on the case but his statements during the trial seemed to very cleanly indicated he was siding with the Seminoles. The impact of this ruling will have very clear impacts on the expansion of gambling in Florida and who will be allowed or not allowed to offer such games. The Sunshine State News explains: 

A federal judge appeared convinced Wednesday that Florida gambling regulators’ decision to allow controversial card games violated an agreement with the Seminole Tribe that gave tribal casinos exclusive rights to conduct “banked” games such as blackjack. “The state has permitted banked card games to go on (at pari-mutuel facilities). … It’s a stretch for you to convince me that the state did not permit that,” Hinkle, who is expected to rule in the coming weeks, told Moe.

Hinkle pointed to testimony from the Seminoles’ expert witness, Jimmie Ray Kilby, who defined a banking or banked card game as one in which all players play against the bank, instead of against each other. “Everybody in the industry knows that’s a banked game,” Hinkle said. 

[Additionally, he said,] “The state of Florida says if the secretary of DBPR (the Department of Business and Professional Regulation) says we’re going to allow banking games in flat-out competition with the tribe, this provision would not be extended beyond five years (because the Legislature didn’t authorize it)?” an exasperated Hinkle asked. “You’re not going to win that argument. You’re just not.” Department Secretary Ken Lawson, who was present for Wednesday’s closing arguments, would not respond to questions from reporters.

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