Category: Coalition talks about compact, gambling taxes

I normally don't do much of the government/politics side of gambling, but I sat in when the South Florida Gaming Coalition came to present its views to the paper's Editorial Board.

They're a group of pari-mutuels in South Florida formed last month that wants to "educate the public and key decision-makers on issues that imipact the pari-mutuel industry in South Florida," according to their material. The coalition includes Miami-Dade parimutuels, Mardi Gras and the Isle in Broward, but not Gulfstream nor Dania Jai-Alai.

As you know, the legislature has a critical time in regards to gambling, made more complicated by a $100 million compact between Gov. Charlie Crist and the Seminole Tribe, which was later voided. And Miami-Dade approved slots, and those sites are hoping to open later this year.

The compact particularly irks Mardi Gras' Dan Adkins, who points as much to the state's actions as he does to the tribe's.

"The state really holds all the cards," he says. "They didn't have to make this deal."

He also points out language in the compact that he says is either a.) flawed, b.) unfair and/or c.) poor business decisions by the state.

What do they want? Well, instead of the 50 percent state tax on slot profits they currently pay, they'd like to have 15 percent of that come back in tax credits, so they could increase how much they would spend on marketing and building expansion.

And they want whatever the Tribe has in South Florida: Either both sides have table games such as blackjack, or neither side. (With the legislature needing to OK table games, their logical -- unsaid -- conclusion is it's likely to be neither.)

The Tribe's advantage to such an arrangement? The coalition says the Seminoles would have slot exclusivity in the rest of Florida (unless some other county miraculously would approve slots, then ... )

They say that when all possible South Florida facilities are open, it could generate $500 million more for the state. The general argument is there would be more jobs and more people coming to the casinos, but they are basing that on about $200 per machine per day on slots. That's 30 percent more than what most places are doing.

They're also counting on Dania to open, which they likely would do if the tax rate dropped.

Last year, Gulfstream, Mardi Gras and the Isle generated $123 million, but overall operation was at only at 26 percent of South Florida's capacity, they say, only 3,769 of the 14,000 machines the paris are currently authorized to have.


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