LOBBYISTS, LAWMAKERS PREPARE PUSH FOR DESTINATION RESORTS

By LILLY ROCKWELL
THE NEWS SERVICE OF FLORIDA

THE CAPITAL, TALLAHASSEE -- Two South Florida lawmakers are poised to unveil a proposal to allow Las Vegas-style casinos in Florida after a similar push failed earlier this year.

The effort to allow casinos rolled into "destination resorts" will be one the heaviest lobbied issues of the session, with billions of dollars at stake for both casino operators and the state. 

Already, lobbyists and casino operators have spent months crafting a new bill and wooing lawmakers and local officials with trips to Las Vegas or Singapore to see destination resorts in action. 

Casino operators pitch the resorts as one solution to Florida's economic woes, a luxurious international destination that could bring thousands of jobs and pack a big economic impact. 

But gaining approval won't be easy. Opponents include the Seminole Indians, who have an agreement with the state to pay for the exclusive right to offer certain card games; the pari-mutuel facilities such as dog and horse tracks, which want the right to prevent competitive intrusion; and those opposed to casino expansion on moral grounds

This year's bill will be different from the proposal that failed earlier this year, lawmakers say. 

Instead of slicing the state into five regions with one casino permitted per area, it would only allow casinos in Broward and Miami-Dade counties, where voters have already approved slots in pari-mutuel racing facilities.

Rep. Erik Fresen, R-Miami, the bill sponsor in the House, said a bill may be filed the week of Oct. 10. 

Though a half-dozen Las Vegas casino operators are potentially interested in building destination resorts in Florida, two of the most visible proponents are Las Vegas Sands and Genting Malaysia.

Both operators are pushing for a bill that would permit them to build massive resort facilities with casinos. But one issue of contention is how many resort casinos to allow. Genting wants three and Las Vegas Sands is pushing for one, arguing there is only enough demand for one of these large resorts in South Florida. 

Fresen said that issue "hasn't been settled completely." His preference, he said would be anywhere from two to three permits. He and Sen. Ellyn Bogdanoff, R-Fort Lauderdale, the Senate sponsor, will hash that out next week.

Another likely feature in the yet-to-be-filed bill is the introduction of a gaming commission and stricter regulation of gambling in the state. Bogdanoff said she hopes the bill will also include provisions to eliminate the Internet gambling cafes that have sprung up throughout Florida. 

"We are going to shut down the Internet cafes," Bogdanoff said.

The gaming commission would be similar to one set up in Nevada and is something Las Vegas Sands lobbyist Nick Iarossi said is a must-have in a destination resorts bill. 

"We won't even consider coming here without a strict regulatory environment," he said.

Genting feels the state's current regulatory structure under the Department of Business and Professional Regulation is adequate. "We think the state has done a very, very good job of what we have in place right now," said Jessica Hoppe, the general counsel for Genting Americas.

Hoppe said the company would not be opposed to a bill that had a gaming commission. It's more important for Las Vegas Sands to have a gaming commission in Florida because it could risk its license in Nevada - the mother ship. Genting does not operate a casino in Nevada, with resorts in locations such as Singapore and New York.

But Genting has more at stake than other casino operators because it has already bought land to build its resort in Miami. Genting has spent more than $400 million to buy prime bay front property that includes the Omni Center and property that contains the Miami Herald building.

Genting plans to build a $3 billion resort, with convention space and a casino as early as 2012.

"The casino floor itself is just one amenity in the whole resort," Hoppe said. "There is going to be a ballroom, conference center, four hotels, two residential tours and many, many additional food and amenities."

Still, one major obstacle for lawmakers is the state's 2010 agreement with the Seminole Indian tribe. The state has a compact with the tribe that guarantees at least $1 billion to the state in five years. 

In exchange, the state gives the tribe the exclusive right to operate certain "banked" card games, such as blackjack at most of its facilities and the right to operate slots anywhere outside South Florida.

Casino operators who want to open destination resorts say this compact can be re-negotiated with the state after five years. But Barry Richard, an attorney for the Seminole Indians, said this isn't true. 

"The compact is a 20-year compact," Richard said. 

He said if the state wants to allow Las Vegas-style casinos in South Florida it will have to prove those resorts will bring more money to the state than the guaranteed money coming from the tribe. "They have got to be able to provide the state with the amount of the Seminoles' minimums as a starting point for it to make sense," Richard said. 

Bogdanoff said she doesn't like the tribe's dominance over certain casino games.

"Right now they have a monopoly," she said. "I think that competition is a good thing." 

Iarossi said nothing in the compact prevents the Legislature from passing a destination resorts bill, and believes that after five years, there is no consequence to the state to allow expanded gambling. 

"It will be two to three years to build these multi-billion dollar facilities," Iarossi said. "So the five-year portion is going to expire before it's up and running….the compact is very clear."

Then there are the pari-mutuel horse and dog racing facilities, which in Broward and Miami-Dade counties offer slot machines and some card games, and want to have their own piece of the pie, either through a reduced tax burden or the ability to build their own resort-style casinos. 

Some opposition will also come from those who believe gambling is morally wrong or that it simply carries a high social cost. Bogdanoff said for a long time, she was opposed to gambling for that reason. But like it or not, Florida is now the fourth-largest gambling state in the nation, she said, and her bill will allow better regulation of this industry.

"I'm tired of it not being regulated the way it needs to be," Bogdanoff said.