In The News

Early start boosted Dade slots campaign
Slots proponents began construction plans while revenue hungry lawmakers eyed more gambling ideas after a win in Dade.

BY AMY DRISCOLL

The winning strategy for slot machines in Miami-Dade County, crafted last fall, focused on locking down as many early and absentee votes as possible to hedge against potential last-minute attacks from a powerful opponent, à la Jeb Bush in 2005.
The effort, which paid off with 70 percent favorable votes among absentees and 64 percent among early voters, turned out to be prudent. Animal rights advocates launched a final-hours campaign against slots, with ads that showed a greyhound with a gun to its head and another depicting disgraced National Football League star Michael Vick, who promoted dog-fighting, as pro-slots.
''It was, in essence, front-loading, so we had a very strong start,'' said Sarah Bascom, spokeswoman for the pro-slots side. ``It was in preparation for late-forming opposition.''

In the end, Flagler Dog Track, Calder Race Course and Miami Jai-Alai won easily with 63 percent of the total vote on Tuesday. Each facility won the right to add up to 2,000 new slot machines -- though proponents said Wednesday the new machines are at least 18 months away.

But in the flush of a victory fueled by the worsening economy and the need for new sources of revenue, another change also became evident: The push for more gambling won't stop in South Florida. Legislators, due back in Tallahassee in March, already have proposals ready to go that would: reduce the tax rate on slot machines, allow 19 other horse and dog tracks and jai-alai frontons to install bingo-style slot machines and create a Department of Gaming Control to oversee the state's increasing gambling enterprises.
''We've got lottery, slots, the tribes, parimutuels, arcades, cruises to nowhere . . . so many different gaming mechanisms in the state of Florida -- it needs to be controlled,'' said Sen. Jeremy Ring, sponsor of the bill that would create the department. ``It's not about the expansion or contraction of gaming. It's about efficient government.''

It's also about competing with Seminole Tribe casinos. The tribe struck a deal in November with Gov. Charlie Crist to share at least $100 million a year in revenue with the state in exchange for new games at the tribe's seven casinos. Sen. Dennis Jones, chairman of the Senate committee that oversees gambling and co-sponsor of the proposal to allow bingo-style slots at the state's 19 other parimutuels, says the tracks and frontons could generate more money for the state than the tribe. His proposal would generate $500 million in taxes the first year for state education, he said, with a 35 percent tax rate. ''It would be a shot in the arm for education and it would be five times what the Indians will do in the first year,'' he said.

FAIRNESS ISSUE
Sen. Steve Geller, a Cooper City Democrat who authored the bill to reduce the slots tax from 50 percent to 35 percent, says a reduction in tax rates is also a fairness issue for the three Broward County slots operations. ''The competition from the tribe is killing them,'' Geller said.

He said his proposal to cut the rate -- written before the Dade victory -- may include a sweetener: a requirement that the state receive at least as much in taxes from slots as it does now. If the Miami-Dade slots victory was any indication, the road to Florida's gambling future will require a calculated, organized, long-term plan. In Miami-Dade, consultants hired by the Yes for a Greater Miami-Dade campaign carved up ethnic groups for phone banks and other forms of outreach that included daily calls to voters, rides to the polls and help in obtaining absentee ballots.

DIFFERENT APPROACH
Alberto Lorenzo, a consultant who specialized in the Hispanic vote for the campaign, said the rising number of early voters prompted slots proponents to start their campaign last fall. ''We started early. We made a conscious decision,'' he said. ``With more voters voting early, it's revolutionized the way we do business and the way we will do business in the future.''
For Hispanics, his approach was largely economic, with a family-oriented twist.

''Prosperity, economic development and jobs,'' he said. ``But Flagler and Calder and Jai-Alai have had families working there for 20, 30 years, so we also emphasized that. It wasn't just potential jobs but also securing the ones already there.'' Lorenzo also focused heavily on Hialeah, where Mayor Julio Robaina posed a threat. Robaina had organized a campaign against slots, enlisting the help of former Gov. Bush. But slots even won in Hialeah, which Lorenzo attributes to strong phone-banking and a heavy presence on Election Day, especially at Milander Auditorium, a central meeting point in the city.
''We had music, coffee,'' he said. ``People really enjoyed themselves.''

GAMBLING | MIAMI-DADE REFERENDUM
Big names line up for, against slots

Former Gov. Jeb Bush entered the anti-slots campaign as the battle over a Jan. 29 referendum in Miami-Dade zoomed into overdrive.
BY AMY DRISCOLL

Hialeah Mayor Julio Robaina, backed by statements from Jeb Bush and Bob Graham, speaks against the slots referendum Wednesday at City Hall.

The debate over Miami-Dade County's slot machine proposal grew from a whisper to a shout this week, with pro-slots ads hitting the airwaves and the staunchly anti-slots former governor, Jeb Bush, finally stepping into the fray.
The initial battleground was Hialeah, where both sides held news conferences Wednesday. At the first, Bush, along with former Sen. Bob Graham and current House Speaker Marco Rubio, didn't show up in person but sent statements of support for an anti-slot-machine news conference held in front of Hialeah City Hall.

''As I did two years ago when I was governor, I am urging all of my fellow Miami-Dade residents to join me in voting no on Jan. 29 so that we may continue to protect our community and our families,'' Bush wrote. ``Expanded gambling will only serve to erode our traditional industries, the industries we aspire to have and our very social fabric.''
The former governor, largely credited with defeating the same issue in 2005 with a weeklong blitz of his home turf, will once again fight the measure, according to Hialeah Mayor Julio Robaina. Robaina said Bush will be filming ads and making calls, among other anti-slots efforts.

''He's very adamant about doing it,'' Robaina said.
Meanwhile, the current governor, Charlie Crist, declined Wednesday to take a position on the Miami-Dade slots referendum.
''I'm focused on this,'' said Crist, who was spending the day campaigning in favor of the property tax amendment also on the Jan. 29 ballot. ``I am trying to keep focused on what is most important to the people.''

POLITICAL COMMITTEE
The first news conference was called by Truth for Our Community, a political committee formed by Robaina and others, in part, because the Hialeah Park racetrack was shut out of the slot machine proposal.
Robaina said that both he and the committee have now expanded the grounds for their opposition to include gambling addiction, abuse of greyhounds used for racing and skepticism about the promised economic and educational benefits from gambling taxes in Miami-Dade.

If approved, the referendum would allow Miami-Dade County's three parimutuels -- Flagler Dog Track, Miami Jai-Alai and Calder Race Course -- to install Las Vegas-style slot machines. Broward County already has slots at three dog and horse tracks.
With less than two weeks before the Jan. 29 election, both sides cranked up their efforts to sway voters, holding back-to-back news conferences Wednesday.

On the anti-slots side, former Sen. Graham issued a statement saying he is ``saddened at the attempts to define our beautiful community's future as tied to a slot machine. We are better than that.''
And Rubio, who campaigned against the issue with Bush in 2005, said in his statement, read by state Rep. Anitere Flores, R-Miami, that ``expanding slots has not worked for Broward County and it will not work for Miami-Dade. Relying on gambling revenues to balance our budgets or fund our schools is harmful for Florida's future and for the future of our families.''
Also appearing at the conference: state Rep. Stan Mayfield, a Vero Beach Republican who said he attended to support the opposition campaign.

ON THE OTHER SIDE
Slot machine proponents held their own news conference two hours later, also in Hialeah, to respond to the anti-slots campaign. The political committee Yes for a Greater Miami-Dade lined up its own political heavy-hitters: former U.S. Rep. Carrie Meek, former state Sen. Roberto Casas and current state Sen. Alex Villalobos.
A day earlier, the organization had released a list of 28 current and former elected officials who support the slots measure.

QUALITY OF LIFE
Meek urged voters to say yes because casinos will spur economic development that minority neighborhoods especially need.
''This is going to help everyone improve the quality of their lives . . . . Jobs, businesses -- that's what we need and that's what's going to happen,'' she said.
Meek, who is being paid by the campaign as a consultant, said she's a tried-and-true fan of slot machines.
''I'm an old slots person. I like the slots and I'm old,'' she said.
Proponents hope voters will look at Broward's slot experience as positive.
''This referendum is about creating jobs, much-needed tax revenue and more money for education,'' said Barbara Havenick, CEO at Flagler Dog Track. ``We are confident that voters will . . . vote yes to support the referendum on Jan. 29 based on facts -- not on sensationalism or scare tactics meant to sway them in the 11th hour.''

Anti-slots campaign targets Jan. 29 vote

A new anti-casinos group that includes greyhound advocates, mothers against gambling and conservative Christian organizations declared Wednesday that ''Miami is not for sale'' as it announced plans to fight the Jan. 29 slot machine referendum.
Miami-Dade County voters will decide at the end of the month whether to allow the county's horse track, dog track and jai-alai fronton to install Class III, Las Vegas-style slot machines like those already operating at parimutuel facilities in Broward County.
The new group, which calls itself No Casinos Miami, includes a broad array of social and religious causes. In a news release, it defines itself as a ``left-right bipartisan group.''
With only 20 days left before the election, organizers acknowledged at a news conference that they come in at a disadvantage. A pro-slots group organized months ago.
''It's our people against their money and muscle,'' said Tom Grey, field director of the National Coalition Against Gambling Expansion.
Proponents of the referendum insisted Wednesday that slot machines will bring economic stimulus for local residents and pump millions into the local and state coffers through taxes.
''This referendum is bringing new opportunities through job creation, millions of dollars to local governments and over $200 million to the state education fund,'' said Christian Ulvert, press secretary for the pro-slots political committee, Yes for a Greater Miami-Dade.

CASINO PACT TAKES EFFECT
By TED JACKOVICS, The Tampa Tribune
Published: January 8, 2008


TAMPA - The Seminole Tribe of Florida's agreement with Gov. Charlie Crist took effect Monday to allow Las Vegas-style slot machines and card games, such as blackjack, at Seminole establishments, including the Hard Rock Casino in Tampa, an attorney for the tribe said Monday.
The printing of a notice in the Federal Register on Monday signified the compact between the U.S. Department of the Interior and Florida's governor was in place, said Barry Richard, of the Tallahassee office of the international law firm Greenberg Traurig.
The notice triggered a $50 million Seminole installment payment to the state Monday, and the agreement specifies the Seminole tribe must pay an additional $50 million this year with higher payments in the future, Richard said.
"The tribe can proceed with instituting Class 3 Las Vegas style slots gaming, but nothing will happen overnight," Richard said. "This will involve the purchase of machines, new personnel and making room on the casino floors."
Seminole officials have said it could take six months before gambling upgrades are in place in Tampa and the tribe's six other casinos in South Florida.
"Today's transfer of $50 million to the state of Florida is just the beginning of revenue that will potentially provide billions of dollars to Florida's schools during the next 25 years," Crist said in a news release. "While the Legislature holds the authority to appropriate these funds, I am confident they will use the power of the purse to improve the quality of life of Floridians for generations to come."
Despite a pending legal issue created by a movement in the Florida Legislature in November to challenge the compact, the tribe is likely to move forward with its plans for enhanced gambling, Richard said.
The tribe wants to be able to generate revenue it has promised the state, Richard said.
A federal district judge in Washington on Friday refused to block Crist's deal with the tribe after Florida Attorney General Bill McCollum made a late effort to delay the compact by questioning the governor's authority to make the deal. The Florida Supreme Court has scheduled hearings on McCollum's lawsuit Jan. 30.

Gambling's big wheel based on TV show
Tom Jicha | TV and Radio Writer
January 6, 2008

This is how powerful a hold television has on America: Even when people are gambling at a casino, the pull of favorite TV shows is irresistible.

Slot machines traditionally have paid off on cherries, oranges, plums and bars, and had names like Double Diamonds, Red Hot 7s, and Red, White and Blue .

They have been joined and, in many instances, surpassed in popularity by slots with TV tie-ins: Deal or No Deal, Jeopardy, The Price Is Right, Miami Vice, IDream of Jeannie and the all-time champion, Wheel of Fortune.

"It's the most popular slot machine ever," said Steve Calabro, vice president of gaming for Magna Entertainment, parent company of Gulfstream Park in Hallandale Beach, where slots and poker now compete with horse racing for gamblers' attention.

Aventura resident Pam (gamblers aren't prone to wanting their full names in the paper) said on a recent afternoon at Mardi Gras Gaming that she and her husband are regulars. He heads for the poker room and she looks for a Wheel of Fortune machine. "I love it and I hate it," Pam said. "I hate losing money, but I love playing the game."

The affection for the game stems in large part from the opportunity to hit big with a bonus spin of the wheel, which looks just like the one on TV. Those who get lucky are rewarded with multiples from 15-1 to 1,000-1 of their wager.

A tourist from Montreal, Gaetane, said she watches the TV show regularly and looks for Wheel of Fortune machines whether she's vacationing in South Florida or Las Vegas. It's all about getting to spin the wheel. "That's why I play the game." She prefers Mardi Gras in Hallandale to any of the Sin City casinos. "I never win in Las Vegas."

Calabro, who has been in the gambling business for more than a quarter century, remembers introducing Wheel to the Taj Mahal in Atlantic City when he worked for Donald Trump. "It was an immediate home run."

More than a decade later, Wheel is still circling the bases around the clock, an unprecedented achievement. "Traditionally slots have a life cycle of 18 months to three years. Most last about two years. Wheel of Fortune has completely bucked that trend," Calabro said. "Ten years from now, it will still be hot. The customers demand it."

"Wheel is without question the most successful slot game there is," said Dan Adkins, vice president of Mardi Gras Gaming.

"If I could buy Wheel of Fortune machines," said Mardi Gras director of slots Mike DeLucca Jr., "I would buy all of them."

Unfortunately for casino owners, this isn't possible. "About 70 to 80 percent of slots machines you buy," Adkins says. " Wheel of Fortune you have to lease."

The additional recurring expense is worth it, according to DeLucca. "Most of the time, every Wheel machine is taken. You have to wait to get a seat at one."

The same is true at the Seminole Hard Rock in Hollywood, according to Gary Bitner, a spokesman for the Indian casino. "It's hard to find a seat at a Wheel machine when it's busy."

Familiarity is an asset, Bitner said. "People know the title. Also, it's tall and colorful." Wheel's profile in a casino also is elevated by a chorus-like "Wheel ... of ... Fortune" chant heard when someone qualifies for the bonus spin.

"It's really noisy," Gaetane said, hoping to hear those magic words herself.

A fairly new jumbo-sized Wheel of Fortune carousel, at which multiple gamblers can play simultaneously, has made the game even more of a presence on casino floors.

The bonus spin is probably the biggest factor in Wheel's popularity because it fosters a perception that it pays better than other slots. Wheel was a pioneer in offering a secondary element to traditional slots, which pay off solely on matching symbols. Wheel does this, too, but adds a bonus spin if certain icons stop in the right places.

Bonus rounds are now commonplace on the latest generation of slots, but none has the cachet or instant recognition of Wheel of Fortune.

Steve Bourie, a Broward resident and the author of the annual American Casino Guide, concurs that Wheel is "the most popular slot machine ever made." However, he wonders whether the bonus round isn't calibrated to pay out a certain percentage over time just as the more traditional slots machines are. "I believe it's predetermined, but there are people in the industry who will tell you both sides," Bourie said.

Payoffs at the Broward "racinos"— Gulfstream, Mardi Gras and the Isle at Pompano Park — are about 90 percent over the long haul, according to Bourie. However, during any given hour or day, the percentage can be much more or less. It is a fact of life in all casinos that the greater the wager, the higher percentage the return. Dollar machines pay back a greater percentage than quarter machines, which pay more than nickel machines, which pay more than penny machines.

The latter are misnomers of a sort. Although it's possible to play a single cent, a typical wager is a dollar or more to cover all the potential winning lines.

Other slots with TV tie-ins, such as Deal or No Deal , might be exceptions to the rule of pre-determined paybacks because of the way the bonus round is designed, Bourie said. Just as on the TV show, the player has an opportunity to take a deal tendered by the machine or to continue in pursuit of a greater payoff.

I Dream of Jeannie operates in a similar manner. The bonus round challenges the player to pick genie bottles, each with a number that increases the payoff by that multiple. Mixed in are several game-ending bottles, which abruptly kill the bonus round. How quickly this happens depends on the player's choice of bottles.

Like the TV show, Jeannie has fallen out of vogue and is difficult to find these days. So is another TV-themed slot, which you would think would have endless appeal in South Florida. The space on the Mardi Gras slots floor now occupied by Deal or No Deal used to be filled by Miami Vice. Crockett and Tubbs have been canceled again.

Slot machine question on the ballot again

BY AMY DRISCOLL

Barely four weeks from now Miami-Dade County voters will decide -- for the second time in less than three years -- whether to allow Las Vegas-style slot machines at the county's dog and horse tracks and jai-alai fronton.

The issue will share the Jan. 29 ballot with the presidential primaries and the property tax constitutional amendment. So slots activists on opposite sides of the debate are hoping to reach county residents through their computers, their mailboxes, their neighbors and their churches, long before they vote.

''We will be focusing on spreading our message through all forms of outreach -- grassroots, door-to-door, radio, TV and print -- making sure that all voters are educated on the issue,'' said Sarah Bascom, spokeswoman for the Yes for a Greater Miami-Dade campaign, a pro-slots organization.

Opponents have a similar strategy. A political committee, called United for Family Values, has plans to campaign through Miami-Dade churches against the referendum, which it characterizes as an expansion of gambling.
Other groups like the Christian Coalition of South Florida, the Orlando-based Florida Family Policy Council and Grey2K, a greyhound advocacy organization, say they'll use email, voter guides and local residents to mobilize anti-gambling forces in Miami-Dade.
''Our supporters in Miami-Dade County have been in contact with some of the anti-gambling activists coming from a faith perspective,'' said Carey Theil, head of Grey2K. ``We'll network with that community.'' He said the organization won't be as active as it was in 2004, when Florida voted on a constitutional amendment to give Miami-Dade and Broward counties the local option for slot machines.
''We won't be quite the force we were then, but we have activists on the ground,'' he said. ``We believe it can be defeated.''
The pro-slots organization, started by Flagler Dog Track and Calder Race Course, is focusing mostly on what they say is the economic boon casinos could offer the county through jobs and taxes.

Broward County is proof, they say. Broward voters approved the issue in 2005, the same year Miami-Dade voters rejected it. Today, three Broward casinos are pumping money into state coffers -- about $96.8 million to the state since the casinos opened last year.
The racinos -- Gulfstream Park & Casino, Mardi Gras Race Track and Gaming Center, both in Hallandale Beach, and the Isle Casino at Pompano Park Harness Track in Pompano Beach -- also pay about 3 percent of revenues to local and county governments.
Broward slot machine operations have suffered from a variety of ills that have affected their success: Gulfstream reduced its slot machines by more than half last month, during renovations, and state economists recently cut yearly revenue projections for the three by $83 million.

But calling the revenue disappointing is misleading, track owners and Miami-Dade slots proponents say, because the net effect on state revenue has been positive. ''We have the support of numerous groups, organizations and residents of Miami-Dade County and are confident that on January 29, the reality of more jobs and much needed economic development will resonate with voters,'' Bascom said. Bascom's group is predicting slot machines at the three Miami-Dade parimutuels -- Flagler, Calder and Miami Jai-Alai -- could generate $210 million a year in new state government revenues. A study the group commissioned also predicted that $26 million in taxes would go to local governments including the county, Miami and Miami Gardens, once all the casinos are open for a full year in 2009.

Miami-Dade and Miami Gardens have already negotiated their percentage of revenues -- they'll get 1.5 percent of revenues up to $250 million. Any revenue greater than $250 million would be taxed at 2.5 percent in Miami Gardens and 2 percent by the county. The city of Miami is still working on its agreement, but it's expected to be roughly the same. Promises of new revenue and more jobs aren't the only factors at play in a primary election, though. Hialeah Mayor Julio Robaina has vowed to campaign against the January referendum -- and urge Hialeah residents to vote no -- unless the city's famous but shuttered thoroughbred track wins new racing dates from the state, allowing it to reopen and potentially install slot machines. But the Legislature, which could take up the issue of the track's revival, isn't expected to meet before the Jan. 29 local referendum. That may leave the fate of Hialeah's racetrack unsettled until after the election.

Then there's the crowded local ballot that voters will face. George Gonzalez, associate professor of political science at the University of Miami said multiple items on the ballot are likely to bring out more voters -- and that can reduce the power of expensive advertising campaigns and give grassroots efforts a greater chance to influence the vote. ''The advantage that the monied issues have is diminished as turnout increases,'' he said. ``Of course, an issue might still pass or be very popular. But the higher turnout makes it less likely for voters to be influenced by big, expensive campaigns.''

So it's back to grassroots campaigning for both sides.
''We're basically going to put blinkers on and focus on one thing,'' said Ken Dunn, president of Calder. ``And that's to send a message out to Miami-Dade County about all the positives this referendum can bring.''

IN THE NEWS

Baccarat could be big winner for Seminoles as it lures big gamblers

By Mike Clary | South Florida Sun-Sentinel
December 27, 2007

Blackjack is the most popular table game among American gamblers, and if the compact between the state and the Seminole Tribe is approved, expect to hear players calling "hit me" at green felt gambling pits all around the tribe's casinos.

But it is the lesser-known table game of baccarat, also permitted by the compact, that could prove to be the biggest winner for the Seminoles and an elite subset of high rollers who prefer to risk their money in quiet settings well apart from the masses and the clamor of slot machines.

Forget casually dressed tourists wearing shorts and sunburns. Think James Bond in Casino Royale.

"Baccarat is the game of choice for the biggest gamblers in the world, especially among Asians and internationals," said Joe Weinert, gambling industry analyst with New Jersey-based Spectrum Gaming. "From a profit standpoint, a major casino would much rather have 10 baccarat tables than 100 roulette tables".

A simple card game that starts with a two-card hand being dealt to one player and one banker, baccarat is just one of the new attractions the Seminole Tribe could offer at its seven Florida casinos once the U.S. Department of the Interior approves the deal.

The 25-year compact between the tribe and Gov. Charlie Crist also gives the tribe the right to set up blackjack tables and install Las Vegas-style slots. In return, the state will get a share of the proceeds, beginning with a minimum of $100 million in the first year.

The agreement is being challenged, however. Last month, House Speaker Marco Rubio filed a petition in the state Supreme Court that argued Crist violated the state constitution in making the deal, and questioned the legality of authorizing games such as blackjack and baccarat that are currently illegal in Florida.

The state Senate also weighed in, agreeing with Rubio, R-West Miami, that Crist overstepped his authority.

More legal wrangling is likely.

But if the compact is approved, baccarat is the game that many analysts say could change the demographics in Florida casinos by drawing experienced players and new gamblers with upscale surroundings and a sophisticated feel.

"Serious gamblers like it because the odds are pretty good," said David Schwartz, director of the Center for Gaming Research at the University of Nevada-Las Vegas. "This will let the Seminoles go after those players who stay in Atlantic City in January because baccarat wasn't available in South Florida."

The game has been growing in popularity in Las Vegas and Atlantic City, where casinos have opened luxurious, Chinese-themed lounges for high-end gamblers, along with offering what is called mini-baccarat, played on craps tables in settings that are less formal.

"Baccarat is not a mass market game," Weinert said. "It is usually played in a intimate, quiet atmosphere, sometimes in an Asian games room with a noodle bar.

"The addition of these table games has the ability to turn Hard Rock into an international destination."

State Senate Minority Leader Steve Geller, D-Cooper City, an opponent of the deal, agreed that baccarat "is seen as a very prestigious game that could bring in high rollers."

But he added that a close reading of the compact suggests "giant loopholes" could allow the Seminoles to offer any number of card games, including pai gow poker, a game that is now illegal in Florida.

Barry Richard, an attorney for the Seminoles who helped fashion the compact, said the tribe is considering refitting its casinos to accommodate only the games named in the compact: blackjack, baccarat and chemin-de-fer, a variation of baccarat.

"The only things contemplated are the games listed in there," he said.

Richard agrees that baccarat could alter the demographics of Florida gamblers.

"It tends to bring in a new tourist clientele otherwise not here," he said.

"These are people the state doesn't have to worry about, people with lots of money, sophisticated card players. And they won't come to Florida at all if the game isn't here."

On 50th birthday, greyhound track's prognosis poor
Originally posted on December 23, 2007, The News-Press, Ft. Myers


The Naples-Fort Myers Greyhound Track in Bonita Springs will turn 50 Thursday.

How long it will survive after that remains in question.

A variety of factors has seen attendance, which peaked in the mid-1980s with nightly crowds of 8,000, dwindle to less than 1,000 on an average night.

Most significant reasons:

• The Florida Lottery.

• Increased access to other gambling venues, such as the Hard Rock Casino resorts in Hollywood and Tampa.

• Pressure from animal-rights groups.

"That track was a special spot for us," said one of the track's owners, Izzy Havenick, who will turn 30 on the same day the track turns 50. "It was our vacationing spot. It was the place where we spent our holidays. We spent so many happy occasions there."

Greyhound racing's most rabid fans are dying off and young people are passing up the sport for higher payoffs and faster-paced action in casino gambling.

Other, more disturbing headlines haven't helped the sport regain its footing, either. Reports of dogs being prematurely killed — some in barbaric manners — cast an unwanted spotlight on the industry in the past decade despite efforts of some dog owners.

And the industry's own greed may have played a part in its downward spiral, said Pete Wedeles, the 70-year-old operations manager who has been with the Naples-Fort Myers Greyhound Track since 1960.

Havenick, who operates the track along with his mother Barbara, the CEO, and fellow vice president and younger brother Alex, knows it faces an unpredictable future.

"Back before simulcasting, people were there for the dogs. It was exciting. Every part of that building was open and everyone was focused on dog racing," he said. "Now it's poker, horses and then dogs."

If it weren't for the track's poker room, Torsten Josupeit, a 39-year-old Cape Coral resident, said he would never make the trip to Bonita Springs.
New age, new era
It's a new age and a new era and finding ways to bring back excitement to greyhound racing is going to be the industry's toughest challenge, Havenick said.

"If you look at my generation — everything is now," he said. "With our grandparents, they waited until the evening news to find out what was happening in the world. With us, we can find out immediately on the Internet. It's the same with racing. We don't want to wait 15 minutes for the next race to start."

Susan Netboy, founder and president of the Greyhound Protection League, is happy the younger generation doesn't have the patience.

"Young people recognize it's exploiting the dogs and won't spend their money there," she said. "And it's too boring for them. Betting on greyhounds takes time and the only people who have time to bet the dogs are the old-timers — and they're not going to be around for much longer.

"If the greyhound tracks get slot machines, they might survive. Without them, they'll be gone in 10 years," Netboy said.

Netboy may be right. On a recent Wednesday afternoon, nine of 10 people in the grandstand appeared to be 60 or older and only a handful appeared to be 35 or younger. Most of the younger people were huddled around a table in the upstairs poker room.

They were people like Levi McNeil, 26, of Kassom, Minn. He was at the track earlier this week — but not because of the dogs.

He was there for the simulcast horse races and the entertainment.

With increased competition, especially with the Seminoles and their plan to bring Las Vegas-style casino gaming to Immokalee, Havenick is clinging to the hope some day soon his tracks will be able to follow suit.

"I think dog racing will survive — as long as there's other things going on in the building," he said. "We're not going to roll over and play dead. As of right now, it's business as usual."
The history
At one time there were close to 30 greyhound racetracks in Florida. That number has dwindled to 13.

"I think a few things have happened," said Havenick, who runs his family operation from the Flagler Dog Track in Miami. "A lot of these tracks were family-run businesses and when land values in Florida began to skyrocket, a lot of these owners who were getting old — or their children, who didn't want to be in the business — decided to sell."

Netboy maintains the industry's wounds are self-inflicted and points to 1991 when it was discovered losing greyhounds were being shipped to the Army Institute of Research for experiments.

"It opened a Pandora's box," Netboy said. "Because of the attention, the Army was forced to release 19 dogs.

"I think that the amount of bad publicity (dog racing) has received over the years really hurt it. The racing industry even fessed up that some 50,000 were being put to sleep each year," she said. "In the early '90s, abuse cases were popping up left and right. But I also think if it wasn't for all the bad publicity, the industry wouldn't have improved. They still have a long way to go."

Netboy, however, doesn't believe it will ever get that far.

"I don't see much hope for it," she said. "If you asked me a few years ago if I thought I'd see the end of dog racing in my lifetime, I would have said no. Now I do"
The future
Wedeles, the 70-year-old operations manager, also doesn't see much of a future for greyhound racing.

"We probably peaked in the mid-1980s," Wedeles said. "It's very close to being on life support. I don't think, on its own, it can survive. Maybe part of the blame is the industry itself and its failure to change with the times — or that it didn't change enough."

Some form of change is inevitable, Havenick said.

"There are people who love the dogs and will always support it, but you have to change with society," said Havenick, who is a supporter of greyhound adoption and has been actively involved in it for years.

"There is no question we have to do something to make it more interesting again.

Maybe it's speeding up the time between races ... or maybe it's shortening the racing season and increasing the purses."

Al DuBoice, 74, of Port Charlotte, recalls the halcyon days of greyhound racing. He was one of the 1,500 people to attend the opening of the track 50 years ago. DuBoice remembers the excitement surrounding the track in its heyday.

He remembers people talking about certain dogs far away from the track, reading stories about dogs, trainers and owners in The News-Press and he remembers how people used to jam the racetrack when it was the only gambling option around.

"I remember when every (teller) window was open and you still couldn't get your bets in because there were so many people here," he said. "Now they have to do something to survive. If it wasn't for poker and simulcasting, I don't think they would have survived this long."
The missteps
While enthusiasm for dog racing has waned for a number of reasons, perhaps none is more interesting than the series of missteps the industry has taken along the way.

Those missteps include the advent of exotic wagering that ultimately led to more losers than winners at the betting windows, and its failure to monitor practices of animal abuse within the sport, said Netboy and Wedeles.

Another misstep is running the dogs year-round. In greyhound racing's beginnings, the dogs raced for a certain period of time — about 90 days — and then the track would close until the following winter and spring.

"It's not a special event any more when you're running year-round," said Wilma Edwards, a 67-year-old owner/trainer at the track.

"It's just not an attraction anymore," DuBoice said. "When people used to come down for the winters, people made it a point to go to the track. I don't think that happens much anymore."

Slot Machine Repair Class To Be Offered at Hollywood School
The Governor of Florida has just signed a compact with the Seminole Indians to allow additional casino gambling at their casinos. The fallout from this decision has already begun.

Sheridan Technical Center in Hollywood has decided to start a class that would teach students how to fix slot machines. The class would feature Las Vegas style slot machines.

The idea is the first in the South Florida area. It is expected that other schools will follow the lead and offer classes in the quickly growing field of casino gambling.

Other schools around the country have tried to incorporate poker dealing classes into their curriculum. Some have been successful, while others have given in to political pressure and dropped the classes.

There are still some hurdles that must be cleared before the class could be offered. One of the things that needs to be done is there must be rules established as to how these slot machines would be allowed to be used in schools.

Currently there are eleven applicants on the waiting list for the new program. The machines that will be used in the class will cost about $15,000 each. The class would begin with twenty machines being used.

Gulfstream Park revamps casino
Posted on Wed, Nov. 28, 2007
BY AMY DRISCOLL
adriscoll@MiamiHerald.com

Gulfstream Park Racing & Casino has slashed its slot machines from about 1,200 to 516 as part of a revamped business plan to boost revenue in 2008 after trailing in third place for months among the three Broward County casinos.
The plan: change the first floor casino to a half-casino, half horse-racing lounge. Add a dozen new versions of video poker, and swap out other, less-popular machines for more penny and two-cent slots. Once all the changes are complete in mid-December, the casino will have about 825 slot machines and video poker games divided between the second floor casino and the redone, first floor lounge-casino.

''We're going to blow the socks off people in terms of video poker offerings,'' said Steve Calabro, corporate vice president of gaming for Magna Entertainment, the Canadian company that owns Gulfstream. ``Instead of having 1,200 games on the floor, we're going to have 850 of the best ones out there. . . . We're going for quality versus quantity.''

The ''racino'' has been troubled for months. Its revenue, calculated on a per-machine basis, has been the lowest of the three state-regulated casinos now operating in Broward. It has averaged $81 per machine in the fiscal year that began in July, compared to $167 for Mardi Gras Racetrack and Gaming Center and $213 for The Isle at Pompano Park.

In the previous year -- though none of the three casinos were open for a full year -- Gulfstream averaged $161 per machine, compared with $216 at Mardi Gras and $193 at The Isle.

Gulfstream also competes with the Seminole Tribe-owned Hard Rock near Hollywood. On Wednesday, Gulfstream filed papers in the Florida Supreme Court asking to join a lawsuit opposing a state agreement to allow the tribe to offer games prohibited at other casinos. Gulfstream argued the agreement will hurt its business and reduce taxes it pays to the state.
But revenues haven't been Gulfstream's only problem. Its casino operation is under investigation by the Florida Department of Law Enforcement. FDLE officials remain close-mouthed about details of the investigation, but they confirmed the probe. Gulfstream officials also refuse to talk about it.

''The investigation has no relation to the business plan change,'' said Sam Farkas, spokesman for the state Department of Business and Professional Regulation, which oversees parimutuels. ``It really comes down to a business decision for them.''
Both the state's business regulation agency and the FDLE have offices at each Broward casino, overseeing the financial and regulated aspects of the business and running criminal background checks on all employees.
An Oct. 30 letter sent by Gulfstream to the state's chief of slot operations, Milt Champion, outlines some of the changes. They include reducing first floor casino slot machines and ``adding back into those vacant areas more simulcasting to accommodate the demands of our racing fans . . . We are striving to increase our revenue over 2007 and we believe we can accomplish that with fewer machines.''

Calabro, who has been on the job since September, said the casino changes will help ``marry horse racing fans with video poker slots players.''

Gulfstream has suffered from the wrong mix and type of slots games, he said.
''We've got a big uphill battle,'' he said. ``We've got to get the perception to the customers that we have the slots they want to play.

Tribe deal worrisome to gambling industry

Operators of Broward racinos are worried that the state's deal with the Seminole casinos will cost them money.

BY AMY DRISCOLL


Florida's historic gambling agreement with the Seminole Tribe, challenged this week by House Speaker Marco Rubio, is sending tremors of discontent through Broward County's struggling casinos. Casino operators say that if the deal goes through, it could further cut into their ability to attract people to their casinos, which they say are burdened unfairly already by a 50 percent state tax on revenue.
''We're already not operating on a level playing field,'' said Allan B. Solomon, executive vice president and general counsel of Isle of Capri, owner of The Isle Casino at Pompano Park. ``This could have a substantial adverse effect. . . . I think it could be a very substantial decrease in revenues as a result of the compact.'' And any reduction in casino business means a reduction in taxes sent to the state, Solomon points out.

The Broward casinos paid more than $49 million in state taxes in the 2006-2007 fiscal year, according to the state Division of Pari-mutuel Wagering figures, and the casinos were not open a full year. The Seminole tribe does not pay state taxes because it is a sovereign nation.
Solomon said the reduction in business the Broward casinos may suffer could ''come close to offsetting any benefit'' from the Seminoles' deal. MIGHT NOT PAY Under the agreement, the Seminoles would pay the state at least $100 million a year, though some provisions allow the tribe to stop payment if revenues fall below $1.37 billion a year. The Seminoles do not have to report their gambling income publicly, but estimates have placed it at more than $1 billion a year.
''That's the worst-drafted document I've ever seen,'' fumed Dan Adkins, president of Mardi Gras Racetrack and Gaming Center in Hallandale Beach. ``There are so many loopholes and problems. I never saw so many ways out of paying in my entire life.''
Barry Richard, attorney for the Seminoles, said Tuesday the tribe ``has no fight with the parimutuels. They'd be perfectly happy if everyone thrived.''
He added that the Broward casinos can ask state lawmakers to reduce their tax rate and noted that initial projections of the revenue from Broward's casinos have fallen short. ''The only thing we know for sure is that Seminole gaming has a proven track record, and it's the only proven track record in the state,'' he said.
Industry analysts say the Broward casino operators may be right to worry. 'As wonderful as this is for the Seminole Tribe, this is bad news for the three operating `racinos' in Broward,'' said Joseph Weinert, senior vice president of Spectrum Gaming Group. ``Not only will the Seminoles get table games, which will attract a whole other class of customers, but the compact also effectively neutralizes their [the Broward casinos] primary competitive advantage -- Las Vegas-style slot machines.''

CARD GAMES
The agreement with the Seminoles allows the tribe to start offering card games such as blackjack and baccarat, plus Las Vegas-style slot machines at its seven casinos, including the Hard Rock hotels near Hollywood and Tampa.
With the new games, the Seminoles will be positioned to start drawing celebrity and other high-roller customers who now head out of state, he said. ''Right now, the Seminoles do very well with the slot machine players, but anybody who wants serious action at the tables is getting on a plane to Vegas,'' Weinert said. ``Once they get blackjack and baccarat tables, they have the ability to retain a significant number of those in the state. And because they have true destination resorts in Tampa and Hollywood, they can get out-of-state players -- and potentially [attract] international players.''

In Miami-Dade, though, pro-slots forces sought to cast the deal as a government seal of approval on the use of gambling tax revenues to pump up state coffers. They say voters should see the decision by Gov. Charlie Crist as one more reason to put slot machines at the county's three parimutuels: Flagler Dog Track, Calder Race Course and Miami Jai-Alai. The countywide vote is scheduled for Jan. 29. ''By signing it, the governor has achieved what we have been saying all along: Gambling revenue is an acceptable addition to state revenue,'' said Sarah Bascom, spokeswoman for the pro-slots ''Yes for a Greater Miami-Dade'' campaign spearheaded by the county's dog and horse tracks.

Crist signed the agreement with Seminole Chairman Mitchell Cypress on Nov. 14.
Rubio challenged the compact on Monday, saying the governor had violated the state Constitution and usurped the Legislature's authority by entering into the agreement without its consent. Rubio, a West Miami Republican, filed the suit with the Florida Supreme Court.

The Seminoles got involved in the suit Tuesday. Their argument: If the court is going to throw out the compact negotiated with the governor, they ought to have a chance to defend themselves. The justices could throw out the deal or order the governor to have the Legislature vote on it. That leaves the Broward casino operators nervously following the action.

KEEPING TABS
At Dania Jai-Alai, where the fourth and final Broward casino remins in the planning stages, owner Boyd Gaming is keeping tabs on the growing battle. ''Obviously, everyone with an interest in the South Florida gaming scene is watching this closely,'' Boyd spokesman David Strow said.

In the end, though, the gamblers themselves are pretty pragmatic about the possibilities. Poker player and yacht captain Nick Battaglia, 29, pausing on his way into Gulfstream Park Racing & Casino in Hallandale Beach, said he also patronizes the Hard Rock because its touristy clientele enhances his chances of winning. ''I like the Hard Rock the best,'' he said, ``because they have the worst players and they're looser with their money.'' Miami Herald staff writer Mary Ellen Klas and correspondent Malka Abramoff contributed to this report.

Calder Launches Pro-Slots Effort
Date Posted: November 13, 2007
By James Freer, Bloodhorse


Calder Race Course in South Florida has launched its campaign for the Jan. 29, 2008, Miami-Dade County vote on whether to allow Las Vegas-style slot machines at pari-mutuel facilities.

Calder president Ken Dunn and officials of Miami’s Flagler Dog Track believe their chances of winning are better than in March 2005, when Miami-Dade voters rejected a slots ballot issue. The day of that vote, Broward County voters approved slot machines for Gulfstream Park and three other facilities.
“This time, people will know what the hours are and what the other rules are,” Dunn said. “They have seen benefits slot machines are bringing (in Broward County).”

Calder and Flagler will stress to Miami-Dade voters that if they say “no” on slots, many county residents will keep spending money on gaming and other entertainment at Broward racetracks and at untaxed cruise boats and Tribal casinos, Flagler chief executive officer Barbara Havenick said.

Miami-Dade’s pari-mutuel facilities lost the 2005 vote by a 52%-48% margin partly because then-Gov. Jeb Bush, a staunch foe of gambling, campaigned against the initiative in his home county. Gov. Charlie Crist’s staff is not saying whether he will take a stand on the Jan. 29 ballot question.

Crist opposes expansion of gambling. But he is negotiating with the Seminole Tribe of Florida for a deal that would let it to upgrade from Class II to Class III slots--the ones now at racetracks--and for the first time pay Florida taxes on slots revenue.

Florida has a Nov. 15 deadline from the United States Department of the Interior to sign a deal with the Seminoles. Otherwise, a federal law permits Florida tribal casinos to put in Class III machines, without paying taxes, because Broward County pari-mutuel facilities have them.

There is speculation among politicians that Crist will not oppose the Miami-Dade slots issue because of revenue implications. Miami-Dade facilities, like those in Broward, would pay a state tax of 50% on slots revenue. That money is used for education programs around Florida.

Meanwhile, Greyhound rights advocates and anti-gambling groups will again start a grassroots campaign to defeat the slots issue, said Corey Theil, executive director of Grey2KUSA, a Somerville, Mass.-based Greyhound rights organization.

Calder and Flagler have formed campaign committee called “Yes for a Greater Miami-Dade.” Miami Jai-Alai, the county’s third pari-mutuel outlet, has given Calder and Flagler “a letter of support,” Havenick said.

Dunn said the tracks are considering television, radio, and newspaper advertisements. He and Havenick would not disclose timetables for starting them.

The tracks have released a study by The Washington Economics Group, a research firm in Coral Gables, Fla., that projects slot machines at the three Miami-Dade sites could create 5,352 permanent jobs in their first full year. The firm estimates 6,000 machines would generate $210 million for the state in the first full year.

Broward’s pari-mutuel casinos, still in the formative stages, are on track for about $50 million this year.

Ironically, the research group’s president, Antonio Villamil, is a friend and former adviser to Jeb Bush. “I am not taking sides on the ballot issue,” Villamil said. “They contracted us to do a professional study. Our research shows there would be significant benefits.”

Calder and parent company Churchill Downs Inc. are not disclosing a timetable for building a casino should the measure pass.
“We will have a competitive, first-rate facility,” Dunn said. “We will retrofit our building or build a free-standing building with access (to the grandstand/clubhouse).”

The Isle Casino and Racing at Pompano Park, a harness track with a free-standing slots casino, has a 2007 average win-per machine per day of $211. Through Oct. 28, that is the best among South Florida pari-mutuel facilities.

Mardi Gaming and Racing Center in Hollywood, with one retrofitted casino room, had a $167 average. Gulfstream, with separate casino rooms on its ground and second floors, had a $76 average. Mardi Gras and Gulfstream are located about one mile apart.

Dunn also said Calder hopes to send its simulcast signal to more South Florida outlets. Calder is finalizing an agreement to carry Gulfstream’s signal when that track starts its season Jan. 3, he said.

On Sept. 6, the Florida Supreme Court overturned a Florida Division of Pari-Mutuel Wagering rule that barred Calder, Gulfstream, and Pompano Park from exchanging signals.

Gulfstream and Pompano began carrying Calder Sept. 22. Pompano carries about 10 other tracks in its first-ever afternoon Thoroughbred simulcast program. Gulfstream had not been able to carry simulcasts before 6 p.m. during its off season. Calder and Gulfstream will start taking Pompano’s night signal Nov. 16.

Calder would like to send its signal to Flagler, another change permitted by the court. But the Florida Horsemen’s Benevolent and Protective Association opposes sending it to a non-horse track, Dunn said.

Gulfstream produced about $5.9 million in afternoon handle through Nov. 8, an average of about $150,000 per day. That included $665,000 wagered on Calder races.

“We are pleased with the business,” Gulfstream spokesman Mike Mullaney said.

“The intention is to continually grow it. People form beach municipalities who ordinarily would not go to racing find Gulfstream Park a convenient place to watch and wager.”

Pompano is averaging about $135,000 a day in afternoon Thoroughbred betting. Many bettors also like the adjacent slots casino and the ability to drive shorter distances to bet on races, said Steve Wolf, senior director of racing for the facility.

Simulcasts at Gulfstream and Pompano have cut into Calder’s attendance and on-track handle by amounts Dunn said cannot be determined. But Calder welcomed the change, which creates more options for fans and Calder getting a share of simulcast handle.

Calder, under a new CDI policy, did not report attendance and handle from its meet that ended Oct. 14. For the same meet in 2006, however, average daily on-track handle for Calder races was $360,687. Calder was on pace with last year in handle through August, Dunn said.

New slots room for the Hard Rock
Sun Sentinel, Nov. 9

She bets up to $50 at a time on slot machines, so getting some love back from a casino is just fine with Darlene Quinn.

"After all, I put in enough money in these machines," she said.

Quinn, of Fort Lauderdale, was among those trying out the new high-rollers area at the Seminole Hard Rock Hotel and Casino in Hollywood. The slots room, north of the poker area, has 133 new machines, with $1 minimums and a $100 maximum.

Slots players say they like the extra elbow room — and that fewer patrons are around to peer over their shoulder, waiting to pounce on their machine as soon as they get tired of losing and walk away. (Most have a superstition that the machine, fattened up with losses, is now ripe for a big payout.)

"It's quieter and has a different feel than out there," said Gary Cramer, of West Palm Beach, pointing to the main banks of 2,500 slot and other machines.

The machines also appear wider on one bank of the high-limit room, but that's kind of an optical illusion, said the Hard Rock's Gary Bitner.

"Just the console is bigger," he said. "It gives you the feel of sitting down and spreading out at a desk and playing."

The Hard Rock also opened the Plum VIP Room, converting what had been a small concert hall into an ritzier area with free food and drinks and waiters in James Bond-era outfits.

The Hard Rock issued plum-colored free entry cards to "a select number of the hundreds of thousands of slots players we have," Bitner said. Players qualify based on a sliding scale of how often they play and how much they bet.

The new slots area and the Plum Room are a necessary upgrade to Tom DeRita, of Palm Beach, who plays a couple of times a month, and is looking for an evening like he has when he goes to the Wynn or the Bellagio in Las Vegas.

A Hard Rock casino "host" is usually within reach, and he enjoys an upscale dinner or concert when he and his wife are not betting $25 to $100 a push on the slots.

"It's as nice here now as it is anyplace in Vegas," he said. "The idea is that when you lose here, you lose with a smile."

Feds set deadline on Seminole gaming talks State has nine days to reach terms on expanded gambling

By John Holland | South Florida Sun-Sentinel
November 7, 2007

The state has nine days to complete a deal bringing blackjack and Las Vegas-style slot machines to Seminole Indian land or risk losing out on at least $100 million in annual payments from the tribe.

The U.S. Department of Interior said if an agreement isn't reached by Nov. 15, it will impose "procedures." That's a legal process in which the federal government could approve expanded Seminole gambling without guaranteeing any money for the state, lawyers and gaming analysts said Tuesday.Whether the order would survive a court battle is unclear, according to lawyers and a recent appeals court ruling, but the federal government issued a stern warning anyway.

In a letter Monday to Gov. Charlie Crist, the assistant secretary for Indian affairs, Carl J. Artman, said it would be "preferable" if the sides reach a deal, but he left no doubt the government would issue an order favorable to the Seminoles if they don't. Artman said a recent constitutional amendment allowing Broward County racetracks to have Class III, Las Vegas-style slots left "the Tribe on an unfair playing field" that must be rectified.

The Seminoles now offer only poker rooms and Class II machines, which are based on bingo odds and aren't as lucrative for the player or the casino.

"The Department has a responsibility to the Tribe .... Please be advised that the Department will issue Class III gaming procedures if a signed Tribal State compact is not submitted by Nov. 15, 2007," Artman wrote.

The issue raised in the letter may soon become moot because both the governor and the tribe think a deal will be struck in time. A draft proposal, which both sides say is almost identical to the final version, calls for the Seminoles to give the state $50 million up front and at least $100 million a year thereafter.

The agreement would allow blackjack and baccarat, a similar card game, but not traditional casino games such as roulette or craps, according to the draft.

Crist was in Brazil on Tuesday on a trade mission, but a spokesman said, "Negotiations with the Seminole Tribe are ongoing, and Gov. Crist hopes to reach a compact by the Nov. 15 deadline."

Seminole lawyer Barry Richard also is optimistic. He said the tribe needs assurances that it will have exclusive rights to operate casinos around the state and that local race tracks won't be able to offer blackjack.

"We are very close and I expect there will be a deal in time," Richard said. "It's very important to the tribe that they have exclusivity, not just with blackjack but also geographical exclusivity. Without exclusivity, there wouldn't be a deal."

Despite the stern tone of the Interior Department's letter, the government has never successfully invoked such procedures. In August, a federal appeals court blocked the department from doing so on behalf of the Kickapoo Tribe of Texas, and the case remains in litigation.

"In light of the Kickapoo case, there are serious questions about whether the Interior Department has any authority to try and force procedures on Florida or any sovereign state," Nova Southeastern University law professor Robert Jarvis said. "Whatever happens, even if there is a compact, you can guarantee this will be in court for a long time."

Some Florida legislators and Broward casino operators have threatened to file lawsuits over any compact agreement or federal procedures.

"For the Seminoles who have had a free ride at the expense of Florida taxpayers for 20 years, to talk about a fair playing field is an insult," said Dan Adkins, chief gaming executive at Mardi Gras Racetrack & Gaming Center in Hallandale Beach. "They don't pay any taxes and have absolutely no regulation, while we are paying a 62 percent rate," he said, referring to the 50 percent that goes to the state, plus county taxes and other fees.

"For the governor to succumb to this type of threat is absolutely unfair to the [racetrack casinos] and to the taxpayers of Florida," Adkins said. "Give us the same exact rules, hours of operation and games, and set a level tax for everyone. That's the only way the state is going to see any real money from gaming."

Deal could crap out dog track in Bonita
Seminoles in line to get Vegas-style gambling

By Mark S. Krzos
November 03, 2007

An agreement between the state and the Seminole Tribe of Florida could spell serious trouble for the Naples-Fort Myers Greyhound Track in Bonita Springs, one of the track's owners says.

Izzy Havenick, one of the owners of the Bonita-based track — one of three tracks his family operates — said an agreement between the tribe and the state would allow the Seminoles to expand their gambling operation in Immokalee to include Las Vegas-style slot machines, blackjack and baccarat and video versions of craps and roulette.

"If that happens, it'll put all parimutuels out of business," Havenick said. "My grandfather built this track. I don't want to think about what will happen."

Because of the proximity — 37 miles — between the dog track and the casino in Immokalee, Havenick fears that gamblers would go where the money is.

"They'll go to Immokalee because they'll have everything and we'll have nothing," he said. "It's close enough that it's scary."

The only kind of gambling allowed at state race tracks besides betting on dogs and horses is no-limit poker. But under the rules, players can enter the games with a maximum of $100. Repeated buy-ins are permitted.

A new Indian-Florida deal would have no cap on how much players could buy in with and would permit big-time, Las Vegas-style tournament play.

Andrew Smith, the director of research at the American Gaming Association in Washington, D.C., said if the state approves the compact, it won't be the first time parimutuels cry foul.

"Their customer base is aging and they're having a difficult time attracting younger customers," Smith said. "Track operators are saying that they're having a hard time competing without the slots supplementing (their loss of customers)."

While Havenick said it's too early to determine the fallout from potential scenarios, jobs could be at stake as well. The track has about 175 employees during the summer and around 275 during season.

Darren Robertshaw, chairman of the Bonita Springs Area Chamber of Commerce, said he couldn't fairly gauge the economic impact.

"It's not something I've really thought about," he said. "It is an attraction and it is something to do — and we don't have a lot of things to do for tourists and residents. If it rains, you can't go to the beach, but you can go to the track to entertain yourself. It's something to do and if people have fun they'll come back."

When people drive to the track, the Bonita Springs economy is boosted in other ways — whether it's through shopping or going out to eat, Robertshaw added. "It would be a shame to lose it," he said.

The picture of expanded gaming is much rosier in Immokalee, where some are having visions of a pending economic boom.

Dick Rice, the executive director of the Immokalee Chamber of Commerce, said the expanded gaming would bring more tourists and more jobs to Immokalee.

"There's talk of expanding the casino and building a new one," he said.

There is also talk of building a destination hotel with a water theme park, he said.

"Plans call for a Native-American-themed hotel and casino," he added. "I think all of this would lead to (redevelopment) of the downtown area ... make it into a walking, more tourist-friendly area."

Seminole Casino representatives in Immokalee directed questions to spokesman Gary Bitner, who did not return calls.

Havenick doesn't know what to make of any of the talk just yet.

"I've heard a million different rumors about what they're getting and what they're not getting," said Havenick, vice president of Southwest Florida Enterprises.

Florida Gov. Charlie Crist was ordered by the Department of the Interior to negotiate a deal with the Seminoles or forfeit the taxes the Seminoles would pay.

Negotiations have been in the works for several months, and the deadline for the two sides to agree is Nov. 15.

If the compact isn't signed, regulation of Seminole Indian gaming would fall to the Department of the Interior and the federal government — not the state — would collect taxes from the Indian casinos.

"The negotiations are pretty far along," said Barry Richard, an attorney with the Tallahassee law firm of Greenberg Traurig, which represents the Seminole Tribe. "I wouldn't say there are any real sticking points."

One of Havenick's primary concerns is an exclusivity clause in the 36-page draft document on the governor's desk that could keep others, such as parimutuels, from similar types of expanded gaming.

"It's a big concern," he said. "We won't be able to compete."

But as it's written now, nothing in the agreement keeps the state Legislature from enacting laws that either further restrict or expand gaming on non-tribal lands.

The likelihood of that, however, seems slim because legislative leaders are against expanding gambling in the state.

"I don't know what the governor is going to do and I don't know what the Seminoles are going to do. The tracks are all in a wait-and-see mode," Havenick said.

According to the agreement, 95 percent of the gambling money collected by the state from the Seminole Tribe would go toward the state's Educational Enhancement Trust Fund and could be earmarked for local governments (both counties and municipalities) affected by the tribe's operation of the games.

Pompano casino hosts ladies only poker tourney
By Nick C. Sortal | South Florida Sun-Sentinel
October 21, 2007

In The News

Penn National completes kennel club acquisition
18 October 2007

WYOMISSING, Pennsylvania -- (PRESS RELEASE) -- Penn National Gaming, Inc.
(PENN: Nasdaq) announced today that, following the approval by Florida's Department of Business and Professional Regulation, it has completed its purchase of the Sanford-Orlando Kennel Club in Longwood, Florida from Sanford-Orlando Kennel Club, Inc. and Collins & Collins. In connection with the transaction, Penn National also secured a right of first refusal with respect to a majority stake in the Sarasota Kennel Club in Sarasota, Florida. As previously announced, while financial details were not disclosed, the purchase price for the Sanford-Orlando Kennel Club provides for additional consideration to be paid by Penn National to the sellers based upon certain future regulatory developments.

Peter M. Carlino, Chief Executive Officer of Penn National commented, "The addition of Sanford-Orlando Kennel Club expands Penn National's portfolio of pari-mutuel operations to six facilities and is consistent with Penn National's long-term strategy to acquire properties that increase the scale and diversity of our operations. We look forward to working with our track partners, the dog owners in Florida and the Sanford-Orlando community to continue delivering exciting racing content and a high-quality entertainment experience."

Located on approximately 26 acres in Longwood, Florida, the Sanford-Orlando Kennel Club features year-round greyhound racing, a simulcast wagering facility, a clubhouse lounge and two dining areas. Located in Sarasota, Florida, the Sarasota Kennel Club features year-round greyhound racing, a simulcast wagering facility, two dining options and the One-Eyed Jacks Card Room which features 24 poker tables.

In The News

Florida's gaming future debated
10 October 2007

HOLLYWOOD, Florida -- As reported by the St. Petersburg Times: "It's been a landmark year for the gambling business in Florida.

"But darned if Wall Street analysts, industry experts and the race track and casino operators gathered for a conference at the Seminole Hard Rock Casino on Tuesday could reach consensus on where gambling is going in the Sunshine State.

"'Gambling could go everywhere,' said Robert Jarvis, a professor of gaming law at Nova Southeastern University in Fort Lauderdale, at the program attended by more than 200 industry professionals. Commercial and Indian casinos might cluster in South Florida, he said, or the Seminole Tribe of Florida might end up as the state's only major player.

"The future hinges in large part on the ongoing negotiations between the tribe and state officials over a deal to expand gambling at seven Seminole casinos, including the Hard Rock in Tampa. The agreement would bring the first legal table games such as blackjack and baccarat to Florida, making gambling a draw for high-roller tourists, said Dennis Farrell, a senior analyst for Wachovia.

"...That prospect has alarmed race track owners in South Florida and the Tampa Bay area, who are calling for state to give them the same deal the tribe receives..."

Democrats want to cut tax breaks, add gambling to balance budget
By Linda Kleindienst | Tallahassee Bureau Chief
October 5, 2007

TALLAHASSEE - Tapping state financial reserves, ending juicy tax breaks for special interests, expanding gambling — in the view of South Florida Democrats, one or all of those options could hold the key to Florida's budget woes.

Instead of cutting back on funding for schools, hospitals and programs for the sick and disabled, members of the minority party are urging the Republicans who control the Legislature to consider raising new revenue to shore up the $71 billion budget.

Legislators are in the midst of a 10-day session, the fourth this year, to plug a $1.1 billion budget hole caused by the state's slumping housing market and economy. Barred from deficit spending by the state constitution, the House and Senate today are likely to pass competing versions of a plan to balance the books, with a final compromise expected next week.

For the state's public schools, the cuts could mean a drop in funding of $100 per student from kindergarten through 12th grade.

Democrats say education is no place to skimp. "Florida has the worst high school graduation rate in the nation, for three years running," said House Democratic leader Dan Gelber, whose children attend public schools.

Today, Gelber, of Miami Beach, and his House colleagues plan to push for the state government to dip into its $3 billion savings account to at least offset the $163 million in cuts to public schools that Republicans are planning, along with a proposed $19.5 million funding cut to community colleges and a $78.5 million reduction for state universities.

Republicans, who are in charge of both chambers of the Legislature, counter that schools will still benefit from an increase in spending over last year, just not as big.

"Only in Tallahassee can a 5.2 percent increase in education spending be considered a cut," said House Majority Leader Adam Hasner of Boca Raton.

Democrats in the House and Senate are expected to vote against the trims in the state's annual budget proposed by Republicans because Republican leaders have rebuffed their call to seek new sources of revenue. During a special session, Republicans say, there isn't enough time.

"We're in a very focused, narrow session here," said Sen. Lisa Carlton, R-Osprey, chairwoman of the Senate budget committee.

Economists who work for the Legislature have warned that more fiscal troubles for Florida are on the horizon. Lower-than-expected sales tax receipts and a dramatic drop in real estate transaction taxes are projected to force at least $1 billion more in program cuts for the next budget year.

Democrats hotly reject any suggestion that they want to increase Floridians' taxes.

"We're not proposing any increased taxes on the average working man and woman," said Senate Democratic leader Steve Geller, of Cooper City. "All that money we have to cut could be made up by new gambling revenue alone."

Geller said the state already is softening its stance on expanding gambling, pointing to Gov. Charlie Crist's ongoing negotiations with the Seminole Tribe that could allow them to install not only Las Vegas style-slot machines in their casinos but table games such as baccarat and blackjack. If approved by both sides, the compact could bring the state $50 million the first year and a minimum of $100 million a year after that.

Allowing table games in Broward County's four pari-mutuels, which already have Las Vegas slots, and empowering other counties to let local pari-mutuels install video lottery machines if voters agree, could raise $1 billion or more in tax revenue each year, he added.

Gelber and Geller also want the Legislature to consider repealing tax breaks they say benefit the state's wealthiest and special interests.

There are currently 325 exemptions to the state's 6 percent sales tax, including charter fishing boat fees, ostrich and race horse feed, crab bait, stadium skybox rentals and Super Bowl tickets. The exemptions are worth about $12.3 billion in forgone state revenue annually.

"A lot of these tax breaks are limited to one company and got through because a lobbyist was friendly with someone," Geller said. "If people come to Florida to go charter fishing and pay $200 for a trip, no one is going to go to California instead to save $12."

In The News

Tampa's Seminole Casino To Debut Gaming Area Thursday
By Ted Jackovics of The Tampa Tribune
Published: September 26, 2007

TAMPA - The Seminole Hard Rock Hotel & Casino plans to open most of its new gaming area noon Thursday in a soft opening of its gaming and restaurant expansion. A soft-opening will allow the public to see and use many of the new slot machines and other facilities while also allowing the casino to correct any problems before finishing the project, which is expected to be completed by Nov. 15.

The expansion also will include two new restaurants. On Friday, the Hard Rock will open its upscale Council Oak Restaurant, which can seat 120 people. The Marketplace Restaurant is expected to open Nov. 15, said John Fontana, president of Hard Rock's Tampa operation.

In The News

Seminoles up the ante in bid for expanded gambling rights
By Jon Burstein | South Florida Sun-Sentinel
September 8, 2007

The Seminole Tribe of Florida has offered the state $50 million up front and at least $100 million a year in exchange for the right to have Las Vegas-style slot machines, blackjack and baccarat, the tribes' attorneys said Friday.

Under the proposal, the state would receive a percentage of the seven tribal casinos' revenue with the Seminoles guaranteeing a minimum annual payment of $100 million. The tribe, though, projects the state would receive considerably more than $100 million, said Barry Richard, an attorney for the Seminoles.

Gov. Charlie Crist's office and the tribe have spent the past four months negotiating an agreement over the Seminoles' gambling rights, which is commonly known as a compact. The U.S. Department of Interior has warned Crist that if the state can't reach an agreement with the tribe, the federal government could step in and allow the tribe to have traditional slot machines anyway. If that happened, the state would receive no cut of the gambling revenue or have any regulatory oversight.

George LeMieux, Crist's chief of staff, declined Friday to reveal the dollar amounts discussed, saying he didn't want to compromise negotiations in any way. He said he hopes to have an agreement in place within the next two weeks.

Crist has indicated that once he has negotiated a deal with the Seminoles, he will ask the Legislature to ratify it. When it would go before the Legislature is unclear, but the slumping economy has the state looking for an infusion of money. Lawmakers are trying to figure out a way to slice $1.1 billion away from the state's $71 billion budget.

In response to public records requests from several media outlets including the South Florida Sun-Sentinel, Crist's office on Friday released drafts of compact agreements that have been prepared by the Seminole Tribe during different points of the negotiations. The drafts were the product of the negotiation talks, but none of the points has been finalized, said the tribe's attorneys and LeMieux. The documents did not include any dollar amounts.

Each of the drafts indicates the tribe is willing to enter into a compact without receiving roulette or craps. Richard said Crist has indicated he's willing to allow expanded card games — blackjack and baccarat — but is against craps and roulette.

LeMieux declined to comment on whether Crist opposed those forms of gambling. Crist is not excited about expanding gambling, but understands that if he doesn't, the federal government will and the state won't receive any money, LeMieux said.

The draft documents indicate that 95 percent of the state's cut would go to education, while the other 5 percent would go to the cities and counties near the casinos. Three of the tribe's seven casinos are in Broward County.

The addition of Las Vegas-style slot machines and some table games would make the Seminole Hard Rock Hotel & Casino near Hollywood more of a destination resort and could fuel expansion at the Seminole Casino Coconut Creek. The tribe has averaged an annual profit of more than $500 million from its gambling operations statewide since opening its Hard Rock complexes near Hollywood and Tampa, according to court records.

The draft documents indicate the Seminole Tribe also wants the compact to include provisions that call for reducing payments to the state if gambling is expanded outside tribal lands.

The Seminoles have wanted a compact for years, but negotiations took on a new sense of urgency in 2005 once voters approved traditional slot machines at Broward's four pari-mutuels.

The tribe has argued that it is entitled under Florida law to the same forms of gambling allowed by the state. The Seminole Tribe's casinos currently feature bingo-style slot machines, where players compete against each other. Those machines are considered less desirable than traditional slots, which are individually programmed for payouts.

Even though three Broward pari-mutuels now have the Las Vegas-style slots, gambling analysts say the tribe continues to dominate the South Florida gambling market.

In The News

Crist suggests taking lottery, roads
John Kennedy | Tallahassee Bureau Chief
September 5, 2007

TALLAHASSEE - Looking to plug a $1.1 billion hole in the state budget, Gov. Charlie Crist said Tuesday that he is considering lots of options -- including turning the state lottery over to private vendors.

The Republican governor also said the state might draw more money into the treasury by allowing private companies to build, service and maintain some Florida roads in exchange for a share of toll revenue.

"I don't know if it's good or bad at this point," cautioned Crist, who acknowledged he had not floated these concepts by state legislative leaders. "But I think it's important to continue to be innovative."

Crist said he has asked heads of the state Lottery and Transportation departments to examine the pros and cons of privatization. Other states, notably California and Virginia, already have built private toll roads, in the 1990s.

Lottery privatization is emerging as a concept that several states are looking at to boost what they consider underperforming lotteries.

Michigan and Indiana are studying the possibility, while California Gov. Arnold Schwarzenegger, a Crist confidant on global warming, also floated the idea earlier this year in his state.

The 20-year-old Florida Lottery grosses more than $4 billion a year in ticket sales and produced $1.2 billion for education last year. But it continues to face increasing competition from Indian gambling, casino cruises and slot machines in Broward County pari-mutuel facilities, according to state analysts.

Crist already is negotiating with the Seminole Tribe an agreement to expand gambling at the tribe's seven Florida casinos -- giving them exclusive rights to such Las Vegas-style table games as blackjack, roulette and baccarat. The deal could produce between $50 million and $500 million annually for the state, Senate analysts said.

Florida lawmakers are expected to meet in special session beginning Sept. 18 to cut the state's $71 billion budget. But Crist has talked of trying to minimize the slashing with some moneymaking approaches.

Crist's predecessor, Gov. Jeb Bush, was a strong advocate of turning many state services over to private vendors. Crist so far has proved more cautious about privatization and said Tuesday that he must still be convinced about the Lottery and toll-road concepts.

"I imagine there are all kinds of ways to put it together if, No. 1, it's really attractive and, No. 2, if there's a percentage share that could be worked out," Crist said. "But it's very early. It's just an idea."

In The News

Poker rooms across Florida flush with cash under new laws
By Jon Burstein | South Florida Sun-Sentinel
September 1, 2007

The state dealt a new hand to licensed poker rooms in July and it has meant full houses for many of them.

Revenue at Florida's 18 state-regulated card rooms shot up almost 60 percent from June to July, hitting what is thought to be an all-time high of $7.7 million, according to preliminary state figures. Fueling the explosive growth are laws that took effect July 1 increasing the betting limits and letting the rooms stay open seven days a week.

Poker receipts at both of Broward County's horse tracks doubled in a month, while the Palm Beach Kennel Club in West Palm Beach is close to becoming the first licensed poker room to generate $1 million in a single month.

"[The laws] changed the game entirely," said Seth Feder, a poker dealer at The Isle Casino & Racing at Pompano Park. "Before it was for fun. Now you'll see about 50-60 percent of it on a more professional level. They'll come out, and this is what they do for a living."

The new laws increased the betting limits in certain games from $2 to $5 and allowed no-limit Texas Hold 'em games with a maximum $100 buy-in. In addition, the pari-mutuels no longer have to shut down their poker rooms on days when they have no live races or jai-alai performances.

With the state taxing card room revenue at 10 percent, the new poker laws could generate up to an extra $3 million for Florida if receipts stay at their current level.

While poker's surge in popularity has helped pari-mutuels statewide, the receipts at Broward's three racetrack casinos are a small percentage of their business when compared with slot machines. Slots generated $18.5 million in revenue in July with half that money going to public education.

The higher stakes spurred a noticeable migration of online poker players from their homes to the card rooms, said Frank Greentree, who locally hosts the radio show Poker Talk America. The allure was fleeting for some online players who since have returned to their computers to play, he said.

The Palm Beach Kennel Club added 20 poker tables in July to accommodate demand, giving it the largest card room on the East Coast outside of Atlantic City, said Noah Carbone, the card room's director. The room can hold up to 600 players, which it did the day the law took effect.

"The bump comes from the part of the public we weren't reaching before because of the [low] limits before," Carbone said. "We believe they were playing home games, cruise ships and on the Internet."

Poker revenue at Broward's four card rooms skyrocketed from $776,000 in June to $1.33 million in July. Leading the way were The Isle Casino & Racing at Pompano Park and Gulfstream Park Racing & Casino in Hallandale Beach. Both saw their poker revenue more than double with The Isle's numbers jumping from $280,300 to $635,000, while Gulfstream's revenue went up from $124,400 to $294,100.

The two horse tracks previously had been limited to operating only on racing days, which meant no more than four days a week. Both debuted new, more spacious poker rooms earlier this year.

Gulfstream Park's 20-table room is in the space formerly devoted to a nightclub and track officials are considering adding more tables, said Mike Mullaney, the track's spokesman.

The Isle's new room sits in the center of the second story of its $160 million casino building. Poker revenue is more than four times higher than last year when the track's poker room was in its aging grandstand.

"On the weekends we have all 34 tables going at one time," said Doug Shipley, The Isle's general manager. "We've had to triple our payroll for poker."

Even on Wednesday afternoon, The Isle had more than 200 players around tables – some joking around, others focused on their cards with blank expressions and the losers waiting to get back in the game.

Larry Davis, 57, of Boca Raton, left the tables at the Seminole casinos once the stakes went up at The Isle. He now plays poker at The Isle three or four times a week.

"I never came here before July 1," he said.

One Broward card room has been struggling with the new law though. Dania Jai-Alai's room generated $171,900 in July compared with $240,700 in July 2006. Dania Jai-Alai used to have an advantage over the horse tracks because its poker room would close only one day a week.

"All of the sudden everyone was running seven days a week offering the same thing," said John Knox, Dania Jai-Alai's general manager. "Competitively it spread the poker players all over the place."

Mardi Gras Racetrack & Gaming Center in Hallandale Beach had a jump in poker receipts from $200,200 in June to $228,700 in July. Mardi Gras hopes to debut a new poker room in October, increasing its number of tables from 30 to 42, said Dan Adkins, the track's chief gambling executive.

Shipley said he's optimistic that poker will continue to take off.

"We're just starting to see the fruits of our labor now," he said.