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GOP leaders may extend gambling
By PETER WALLSTEN, BRAD GOLDSTEIN and DAVID DAHL © St. Petersburg Times, published July 24, 1998 Powerful Republican state House members said Thursday that they are open to legalizing what critics call electronic slot machines at parimutuel sites such as dog and horse tracks. They say the move is needed to protect the struggling parimutuel industry from more losses should the Seminole Indian Tribe be allowed to open casinos in Florida. "We at least need to have a conversation about other types of things that might enhance the parimutuel industry," said incoming state House Speaker John Thrasher, R-Orange Park. "These are things that have been done in other states." The Seminoles' attempts to get casino gambling continued Thursday. At a meeting in Orlando, representatives of Gov. Lawton Chiles and the Seminole Tribe discussed a proposal by the Seminoles that offered the state as much as 45 percent of their gambling profits in exchange for the rights to offer blackjack, slot machines and other casino games. No decision was reached, but Dan Stengle, Chiles' general counsel, said the state was concerned about the types of games the tribe wants, the locations of tribal casinos and the regulation of such games. A longtime opponent of casino gambling, Chiles is required to negotiate "in good faith" with the Seminoles on the gambling question. The Seminoles are working with Atlantic City casino owner Donald Trump, who has made clear his desire to do business in Florida. In May, he donated $50,000 to the state Republican Party. In late 1997, he held a fund-raiser at his New York apartment for GOP gubernatorial candidate Jeb Bush, who says he strongly opposes casino gambling. Lt. Gov. Buddy MacKay's Democratic campaign for governor has attacked Bush for his ties to Trump. But Bush fired back Thursday, emphasizing his long-standing opposition to casino gambling. Bush served on the board of directors of the "No Casinos" campaign that has opposed constitutional changes to allow casinos. He said he had nothing to do with Trump's donation to the party. At an appearance in St. Petersburg late Thursday, Bush said that he knew little about electronic slot machines, called "video lottery terminals" but that he generally opposes any expansion of gaming. He does, however, want to protect the parimutuel industry. "I hope we can find other alternatives to support an industry that is important," Bush said, "but to expand it into areas that I think go against the interest of our state -- and where the state clearly has voted consistently against it -- does not make sense." MacKay said Thursday that he also is opposed to any expansion of gambling. Thrasher, who has met twice with Trump about the casino issue, said Thursday that Florida needs to find ways to help the parimutuels, which have been struggling in recent years because of increased competition from gambling cruise ships. The industry -- greyhound and horse racing and jai alai -- provides some $100-million in tax revenue a year and 25,000 jobs, backers said. "You're looking at a gradual, incremental collapse of a very fine industry in the state," said Wilbur Brewton, a Tallahassee lobbyist who represents a horse track. "The Legislature is waking up to the fact that they're about to lose an industry that employs thousands and thousands and thousands of people who won't have jobs without it." For years, the parimutuels have searched for alternative ways to make money, such as betting on races in other cities through simulcasts and card rooms. But the "video lottery terminals," which have no connection with the Florida lottery, have been popular in other states. The terminals are controversial because they are so similar to slot machines. Previous efforts by the Legislature to legalize them have failed, but supporters think this might be the time to try again. Rhode Island-based GTECH Corp., which manages the terminals in other states, clearly sees the possibility. The company donated $25,000 to the state GOP in April. Unlike slot machines, in which players insert coins and pull a lever, the video terminals accept dollar bills and players push buttons to select the items to match. A winner does not have the satisfaction of change pouring out of the machines, however. With video terminals, players receive receipts and can get their winnings from a cashier. The Seminoles already are running some video gambling machines, though the U.S. Justice Department has tried unsuccessfully to shut them down. Thrasher said he would not have a problem allowing the video terminals at existing parimutuel sites, since the Florida lottery already offers scratch-off games that players can turn in for instant cash. It was not clear how the terminals might play in the Senate. Senate President Toni Jennings did not return a reporter's telephone call but said through her spokeswoman that she will "look at this issue along with any parimutuel issues that come up next session." Meanwhile, House Majority Leader Jim King, who expects to serve as budget chairman when Thrasher takes over the House speakership in November, said he would support other changes beyond the video lottery games. He suggests lifting a cap on card rooms that limits poker pots to $10. Higher-stakes poker games would bring in more business, as well, King said. "Take it from someone who has played for money," he said, "but (the $10 cap) is not real poker." All the changes are being proposed despite voters' overwhelming opposition to constitutional amendments that would allow casino gambling. Stengle, the governor's general counsel, said any extension of gambling by the Legislature would be viewed as an expansion of gambling in Florida and would increase the chances of the Seminoles getting approval for full Atlantic City-style casinos. While Floridians overwhelmingly have rejected casinos on three occasions, a Department of Interior proposal to take effect in November could make them a reality for both the Seminoles and Miccosukees. Under the proposed rules, if a tribe thinks a state has refused to negotiate in good faith, Interior Secretary Bruce Babbitt could authorize the tribe to operate full-scale casinos. Last month, Chiles sent a letter to Babbitt objecting to the rules and questioned the secretary's ability to serve as a neutral party. Attorney General Bob Butterworth is expected to challenge those rules, if they are adopted. For years, the Seminoles have tried to expand into Las Vegas style casinos, but they have faced some formidable obstacles: the governor, the attorney general, the U.S. Supreme Court and voters. Now, the odds may be improving for the tribe. Prompted in part by the Interior Department rules, the Seminoles have picked up financial help from several current and prospective business partners. While Trump may be supporting the state Republican Party, at least one of the Seminoles' bingo partners has given generously to the Democratic National Committee. Federal Election Campaign records show Alfred Estrada, one of three principal investors in Pan American and Associates, the firm that runs the Seminoles' Tampa and Immokalee bingo halls, gave $80,000 to the DNC in 1997. He gave $20,000 to the Democratic Senatorial Campaign Committee in May of this year. Estrada of Fischer Island is no political lightweight. FEC records show he gave $100,000 to the DNC in 1995. He and his wife also attended a $5,000-a-plate dinner in the early 1990s for the Clinton campaign in Miami. The Estradas sat with Hillary Rodham Clinton.
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ALLAHASSEE -- Florida may be headed toward another high-stakes battle over the expansion of legalized gambling.
