State Rep. Dana Young released the so-called HB 1233 related to Florida’s gambling industry mere hours before the beginning of this year’s legislative session on March 3. And the proposal is about to be reviewed for the first time on Thursday, March 26, at a special workshop.
State Rep. Young pointed out that during the meeting, no amendments will be added to the bill and it will not be voted. House members will only discuss whether it is good for the state’s economy and residents.
More or less, HB 1233 contains provisions about all aspects of Florida’s gambling industry. If passed into law, it would allow the establishment of two integrated resorts with Las Vegas-styled casinos in the southern part of the state. Their developers would be required to offer capital investment totaling no less than $2 billion. Once the venues are established, owners would have to annually contribute a total of $350 million to Florida’s coffers out of their gaming revenues.
Another provision calls for the prohibition of any further expansion of the gambling industry, unless residents of the state have approved this via statewide vote.
The bill also proposed a reduction of the tax rate for the seven racinos that are located in Southern Florida. At present, they are required to pay a 35% tax. If the House votes in favor of State Rep. Young’s bill, those will be imposed a 25% tax instead.
Furthermore, the proposed legislation suggests that live racing at dog tracks might no longer be available, yet the venues will be allowed to operate slot machines. In fact, HB 1233 contains quite a few provisions concerning dog and horse racing.
And last but not least, State Rep. Young calls for the establishment of a statewide Gaming Control Commission that would be in charge of Florida’s gambling industry and all matters related to it.
The proposed bill sparked mixed reactions. State Rep. Young herself explained that her primary goal was not to please the interests of all concerned parties. She said that she had tried to present “alternative visions” for the state’s gambling market.
The Seminole Tribe of Florida is among the opponents of HB 1233. The tribe has been granted a license to offer exclusively blackjack and other table games on the territory of the state. This license, however, expires on July 31 and tribal officials are doing their best to get it renewed.
However, State Rep. Young’s proposal suggests that Florida would gain much more out of the potential establishment of two other casino resorts. The Seminoles annually contribute as much as $250 million to the state’s coffers. And, as mentioned above, if two new casinos open doors in Florida, they will pay a total of $350 million every year.
Jim Allen, Chief Executive of Seminole Gaming, the company that operates the tribe’s venues in Tampa, Hollywood, Brighton, etc., commented that the state will, in fact, lose money, provided that this bill is passed into law. Mr. Allen pointed to the provision that suggested a 10% tax reduction for pari-mutuel businesses.
State Rep. Young’s bill gained keen proponents, as well. For instance, major gambling operators, such as Las Vegas Sands and Genting Malaysia, see an opportunity to finally accomplish their goal to enter Florida’s gambling market.
