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Slots vote split: Yes, no

Miami-Dade residents reject the Las Vegas-style machines, while Broward County embraces them, keeping the battle alive.

By GRAHAM BRINK and JONI JAMES
Published March 9, 2005

A vote to allow slot machines at race tracks and jai alai frontons in two South Florida counties ended Tuesday with surprisingly mixed results.

Residents in Miami-Dade voted against the measure, much to the delight of powerful gambling opponents led by Gov. Jeb Bush.

But Broward County approved the slot machines, a result that could affect gaming establishments around the state, including seven casinos run by American Indian tribes.

The split decision ensures that the battle over slot machines remains far from over.

Among the issues facing state lawmakers will be the kind and quantity of slot machines that parimutuels in Broward will be allowed to install, how they will be regulated and how much they'll be taxed.

Opponents of the measure have vowed to push lawmakers to implement tough rules that would restrict the use of the slot machines.

"I find gambling to be such a false hope, such a something-for-nothing approach," Bush said Tuesday before all the votes were counted.

In Broward, the measure passed with 57 percent of the vote.

In Miami-Dade, it went down 52 percent to 47 percent.

Passage in one county was not contingent on the results in the other. Both counties reported a light turnout and smooth voting, with all precincts opening and closing on time, according to the county election offices.

In November, voters from across the state approved a measure to amend the state Constitution to allow Miami-Dade and Broward county residents to vote on the issue.

The stakes for the gambling industry remain huge.

Proponents say that Las Vegas-style slot machines will deliver up to $500-million annually for schools statewide, create as many as 18,000 jobs and stimulate economic development. They have spent millions of dollars to get the measure approved. The industry has promised to give schools at least 30 percent of proceeds from the machines.

But the opponents, including Bush, have argued that the machines would increase crime rates and gambling addiction and damage Florida's reputation as a family friendly vacation destination. There's also no guarantee that the slots would raise hundreds of millions of dollars for schools or that the bulk of that money will stay in South Florida, Bush said.

Bush has raised the possibility that lawmakers might choose to pass legislation allowing only lower-stake "parimutuel" slot machines, in which players bet against one another rather than against the house.

Such machines, which spit out paper receipts rather than cash, are in use at the state's Indian casinos, though the tribes call them video lottery terminals, or VLT. Such a decision would mean far less revenue for parimutuel outlets.

A move like that could also prevent the Indian tribes from adding Vegas-style slot machines. Federal rules allow tribes to offer only the level of gambling that is legal in the state where they are located.

Tribal casinos in Florida can currently offer what are called "Class II" games, which are games such as bingo or poker in which players play against one another, and the casino takes a portion of the amount wagered.

"Class III" games, such as blackjack, roulette or Vegas-style slot machines, pit the player against the casino. Class III games are far more profitable for casinos because they can set the payouts, subject to law.

For instance, machines found at the Seminole Hard Rock Casino in Tampa are electronic bingo games that slot machine manufacturers have dressed up to look like slot machines, but players actually compete against fellow players.

The Seminole Tribe, which operates six casinos around the state, opposed the November amendment on the grounds that it would create more competition. This time, the tribe did not take a side.

The tribe's casinos are not taxed by the state. That could change if the state enters an agreement with the tribe to authorize slot machines.

"The Seminole Tribe of Florida pledges to work with Florida's elected officials as they implement the expansion of gaming in the state," tribe spokesman Gary Bitner read from a statement Tuesday evening. "And we look forward to bringing these new games to our casinos."

For now, the casinos run by the Seminole and Miccosukee Indian tribes remain unregulated and untaxed. Tuesday's vote allows South Florida communities and schools to tap into those gambling dollars, said Fred Havenick, the president of Flagler Greyhound Track.

"The genie is already out of the bottle," Havenick said. "Gambling is already here."

The vote marked the second time Bush has failed to thwart a gambling expansion. Shortly after taking office in 1999, he convinced the Cabinet to ban "cruises to nowhere" from docking at public ports. The state Supreme Court overturned the decision.

The approval also marks a significant loss for other state leaders.

Both House Speaker Allan Bense and Senate President Tom Lee joined Bush last week in vocally opposing the local referenda.

Bense had suggested he might seek a measure on the statewide ballot to repeal the constitutional amendment passed in November.

On Tuesday, he softened his position, saying he felt obligated to carry out the will of Broward voters, even though he personally disagreed with their decision.

"The people passed it, the people approved it ..." he said. "We will take up the implementation ... and we'll do it in a fair manner."

On Tuesday before a Senate panel, industry lobbyists urged lawmakers to pass a tax rate on the low side, saying too high a tax rate will only curb capital investment and give a further competitive edge to Indian casinos and casino boats, which pay no taxes.

Lee wasn't tipping his hand Tuesday.

"If it passes the Legislature will have to come up with regulatory and tax schemes," Lee said. "Stay tuned."

The Associated Press and Times staff writers Scott Long and Steve Bousquet contributed to this report. Graham Brink can be reached at (727) 893-8406.

[Last modified March 9, 2005, 00:56:05]