Wednesday, January 23, 2013

Gambling expansion debated - Business - The News Herald

Gambling expansion debated - Business - The News Herald


Gambling expansion debated

Lawmakers told pari-mutuel wagering in state can’t be saved
Gambling expansion debated
This rendering shows how Ebro Greyhound Park could be redeveloped into a major resort if state law were amended to allow slot machines in Washington County.
Special to The News Herald
Published: Tuesday, January 22, 2013 at 19:32 PM.
TALLAHASSEE—The state Senate Gaming Committee on Tuesday heard testimony supporting and opposing gambling’s expansion in Florida.
The Panhandle’s eyes have been fixed on the committee as many hope for comprehensive legislation that would allow destination casinos in the area. Also Washington County already has voted for slot machines at Ebro Greyhound Park, but a state Attorney General’s opinion requires its referendum be approved in the state Legislature or in the state Constitution.
On Tuesday, lawmakers primarily stayed neutral on controversial gaming issues, using the meeting as an information gathering session, with a few notable exceptions.
Richard Turner, representing the Florida Restaurant and Lodging Association (FRLA), sparked some pointed questions when he voiced opposition to expanding gambling. He was most against “destination casinos” and said they would cannibalize restaurants and retail stores in Florida because they offer in-house dining and shopping options.
“The expansion of gambling is simply a bad bet for Florida,” he said.
Turner said the FRLA isn’t against existing gambling, only its expansion.
“The important thing is not to cannibalize what we already have,” he said.
But state Sen. Bill Montford, D-Tallahassee, asked if he’d have the same concerns if another Disney World came to the state. Turner was less opposed to that idea.
“You can always add one more successful product to Florida,” he said.
Still Turner said expanding gambling would create a “strong possibility” that some tourism dollars would be redirected from existing businesses to casinos.
Jack Latvala, R-Clearwater, expressed doubt that more gambling is bad for Florida. He made the point that people travel to Las Vegas and Atlantic City to gamble, so why not Florida.
Turner responded that Florida already has attractions that bring people into the state and said tourism is about the only growing economic sector.
“And perhaps you wouldn’t want to threaten that,” he said.
Latvala said a state, like a business, can “cap out” a certain revenue segment and must develop other options. He asked wouldn’t it be logical to go after another type of customer.
Donn Mitchell II, chief administrative officer of Isle of Capri Casinos Inc., was more adviser than advocate when he addressed the committee. He said lawmakers need to look carefully at the tax rate applied to the gaming industry. He said within the industry higher taxes means more revenue for the state, but fewer jobs and less capital investment.
“We do think that getting that equation right is very important,” he said.
Mitchell said Florida should look at other states’ tax rates and use that as a guide. He said the independent gambling study the Legislature is planning is “exactly the right path.”

Pari-mutuels declining
Also testimony was given on the slow death of pari-mutuel wagering in the state, which is used for horse and greyhound racing. Cari Roth representing Tampa Bay Downs Inc. said its thoroughbred racing was in decline and asked that the committee view such racing as a separate business. She said interest in this form of gambling has declined.
Gary Rutledge, representing St. Petersburg Kennel Club Inc., agreed. He said pari-mutuel wagering has been in Florida for about 90 years and its high-water mark was in the 1980s. He said particularly outside South Florida pari-mutuel wagering has fallen off.
Rutledge said allowing slot machines and poker rooms at these facilities is no panacea, but it will provide them some temporary relief.
SenTom Lee, R-Brandon, said pari-mutuel betting has been slipping since the 1990s.
“The pari-mutuel permits have just become an anchor for (other types) gambling,” he said.
Leeasked if it was safe to say the Gaming Committee’s actions couldn’t bring pari-mutuel betting back, and Rutledge agreed.
“I didn’t mean that to be pejorative, but I’m just trying to cut through it,” Lee said.
Also Rutledge addressed Internet cafes and said some say they should be regulated, licensed and taxed. He said regardless the Internet cafes are impossible to ignore.
John Sowinski, president, NoCasinos.org, said Internet cafes should be shut down and called for no gambling expansion.
“Gambling comes with its own unique, devastating and very real consequences,” he said.
Also in the meeting, committee chair Sen. Garrett Richter, R-Naples, said several times the Senate and House are working on a request for proposal for a comprehensive gambling study for the state. He said he wasn’t sure on the study’s particulars, but would look at gambling’s economic and social impacts.
“This is a wheel with a lot of numbers on it,” he said.
Richter said the issue is complex and achieving comprehensive legislation won’t happen in interim committee meetings. He said ultimate decisions will be thoroughly investigated and thought out.
“We’re exercising now for the starting line,” he said.

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