The Gaming Issue in Palm Beach County, Florida

December 18, 2009

Palm Beach County wants to have a bigger presence in Florida’s growing gaming industry. State law already permits slot machines and other forms of expanded gaming in neighboring Broward County and the Palm Beach County Commission wants the same chances for local gaming establishments such as the Palm Beach Kennel Club in West Palm Beach.

The county also opposes the newest version of Gov. Charlie Crist’s proposed gaming agreement with the Seminole Tribe, which would permit expanded gaming at Seminole casino facilities without permitting similar chances in Palm Beach County and other pari-mutuel facilities in South Florida.

Commission Chairman Burt Aaronson said on December 5th, 2009 that to place Palm Beach Kennel Club at a disadvantage is a big crime. Gaming critics argue that expanded gaming can lead to an increase in crime rate and push gambling addiction that can worsen the financial situation for those individuals who are already struggling. But from the state lottery to Seminole casino facilities, gambling is growing rapidly in Florida.

Aaronson said that since it is already here, residents in Palm Beach County should benefit from the new employment opportunities, business and tax revenues gaming could bring. County commissioners see gambling and the Palm Beach Kennel Club as an economic lifeline for the area near Palm Beach International Airport.

The Palm Beach Kennel Club, with more than six hundred employees, attracts more than 750,000 visitors a year. Commissioner Priscilla Taylor, a former state legislator, said that it is very important to them.

Taylor also sees expanded gambling at the Palm Beach Kennel Club as an option to boost jobs. If state officials permits more gambling, Aaronson envisions having a casino facility near Lake Okeechobee to help provide needed jobs for Belle Glade, South Bay and Pahokee, where the unemployment rate is at 40%.

Beyond the gambling cruises on day tours to nowhere, Aaronson suggested permitting gambling on ships that stay anchored at the coast. Last year, the Florida Legislature failed to pass a measure to permit slot machines at the Palm Beach Kennel Club and other pari-mutuel facilities, a measure Palm Beach County hopes to push for this year. Pushing to expand gaming is among the goals approved for the County Commission’s team of hired gaming lobbyists.

The county is paying $230,000 for seven lobbying groups next year to lobby for state issues ranging from gaming to transportation. County commissioners also plan to spend more time in Tallahassee to lobby for expanded gambling and other important local issues in person.

The Legislature so far has blocked Crist’s attempt to reach a new deal with the Seminole Tribe, because the proposed agreement does not permit similar new games at pari-mutuels.

Last month, the House committee on Seminole gaming suggested permitting voters to decide whether to allow expanded gaming across Florida.

 

Monday, 21 December 2009
Marissa Patterson

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The Slots Issue in the State of Maryland

December 14, 2009

More than a year after state voters in Maryland allowed slot machines as an option to overhaul the state’s sagging coffers, the effort to bring gaming revenue into the state has hit a block.

Pitching the vote, Maryland’s top political brass-from Governor Martin O’Malley to Montgomery County Executive Ike Leggett-said that gaming companies would move to the state in droves, paying tens of millions of dollars for gaming licenses and producing a steady stream of gaming revenue once the slot machines are up and running.

Aside from supporting Maryland’s Treasury, gaming was supposed to help Maryland’s dying horse-racing industry. State officials estimated that the slot machines would be worth $600 million in annual revenue in just a few short years. But a year later, only two gaming licenses have been given out. Not a slot machine lever has been pulled by gamers.

An effort to place slot machines in Anne Arundel County is stalled by a zoning problem. A proposed casino facility in Baltimore is still waiting for the $20 million licensing fees and the needed paperwork. There have been no bids for a casino license in Allegany County in Western Maryland.

Magna Entertainment Corporation, which owns Pimlico and Laurel Park racetracks, botched their slot machine applications and has since filed for bankruptcy. Barbara Knickelbein, a civilian activist who led the opposition to last year’s slots referendum, said on November 24th, 2009 that the voters were duped by the slots supporters.

Gov. O’Malley’s spokesperson, Shaun Adamec, said that the slots plan has seen a few problems. Adamec said that it is a process that has never been previously undertaken and to some extent, they had to invent as it went along.

But Maryland Senate President Thomas Mike Miller (D-Prince George’s County) said that Maryland has to start over on the issue. Miller blamed the state’s gaming woes on its critics, who place “crippling changes” into the slots legislation-giving placement power to local zoning officials, forbidding casino groups to offer “entertainment”, requiring union contracts and living wages of casino staff and giving Maryland nearly 2/3 of the slot revenues-that “damaged” the effort.

Anne Arundel resident Rob Annicelli, who is leading a local group opposing the plan installation of slot machines at the Arundel Mills mall located south of Baltimore/Washington International Thurgood Marshall Airpor, said that political leaders let themselves be blinded by rapacious gaming interests without caring for the negative effects to the residents of the state.

 

Thursday, 10 December 2009
Kori Woffendin

Polish Parliament Approves Stricter Laws for Polish Gaming Industry

December 14, 2009

A new bill was just approved in the Polish Parliament on November 23rd, 2009, which restricts gaming strictly within the confines of casino facilities. The gaming bill’s approval comes after a huge scandal, dubbed as the “Blackjackgate”, seriously rocked the cabinet of Prime Minister Tusk last month.

Following the gaming scandal, Prime Minister Tusk started a push towards the approval of a stricter legislation regarding the gambling industry in Poland. In a vote of forty-eight to three with thirty abstentions, the bill passed in the Polish Senate.

However, it still requires the approval of President Kaczynski, of which Prime Minister Tusk is confident, stating that barring any new surprises, he hopes that President Kaczynski will be able to place his signature on the new bill as of November 30th, 2009.

The new gaming law states that stat slot machines, previously permitted in bars, service stations, cafe and some shopping malls around the country, will only now be permitted within official casino facilities.

It is estimated that more than fifty thousand slot machines may have to be removed. Also, individuals below eighteen years old will not be allowed to gamble at all. The new law also affects online gaming, which will no longer be permitted under Polish law.

However, the enforcement of this aspect of the bill will prove more difficult that removing thousands of slot machines.

 

Thursday, 17 December 2009
Cindy Alfonso

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Seneca Gaming to Begin Slots Gaming Expansion

December 4, 2009

Seneca Gaming Corporation is poised to start the expansion of their Seneca Buffalo Creek Casino that will see the number of slot machines of the casino double. Jeffrey Gill, Seneca Gaming’s chairman, said that construction on the $8 million casino project that will bring another two hundred slot machines to the 244 slot machine, nine thousand square foot South Park Avenue complex is expected to begin before Halloween.

The expansion should be finished by early spring. Seneca Gaming is the casino operations division of the Seneca Nations of Indians. Gill made the announcement on October 1st, 2009 as he introduced five new members to the board of directors of Seneca Gaming. But the expansion does not mean that construction on the planned $333 million Seneca Buffalo Creek Casino and hotel facility is about to be re-started.

Work on the casino project has been postponed since August 2008 because of the financial crisis. The facility is also subject of a federal lawsuit filed by local anti-casino groups that has yet to be resolved. The economy will determine when several of Seneca Gaming’s projects will move forward.

Last year, Seneca Gaming also postponed plans to add a new hotel to the Seneca Allegany Casino and Hotel. Expansion plans for the Seneca Niagara Casino and Hotel are also in holding pattern because of the current economic condition.

Gill, who is a retired sergeant with the Erie County Sheriff’s Department, was elected Seneca Gaming chairman on September 11th, 2009. He is part of a new group of board members that will manage the corporation. Other new members include Robert Mele, Richard K. Nephew, Ina Locke, Karen Karsten and Mark Halftown.

All new members were introduced on Thursday, even though they were elected in their new position at the September 11th, 2009 meeting. Gill said that he also expects that the Seneca Hickory Creek Golf course will welcome its first players next spring, although the golf course would not be fully operational until next fall.

A wet summer and fall weather this year slowed things on the layout. Gill also stated that he expects to solve frayed relations that have developed between the Seneca Gaming Corporation and the Seneca Nation of Indians over a variety of personnel and legal issues. He added that he wants to re-open lines of communication that have been closed or limited in the past months.

 

Sunday, 29 November 2009
Caroline Mitchell

Ohio Education To Incur Cuts Because of Ohio Supreme Courts Decision on Slot Machine Plan

December 4, 2009

Ohio Governor Ted Strickland said on September 29th, 2009 that school districts in Ohio could see 10.3% cuts in state aid this school year and nearly sixteen percent by 2010-$2.3 billion in total-if the state does not find any other way to revive the slot machines plan. Dayton Public Schools is at risk of losing a total of $34 million in the next two year, according to a study made by the Ohio Department of Education.

The problem: Ohio’s $13 billion , 2-year K-12 budget relies on lottery earnings, slot-machine earnings, other state earnings and stimulus funds from the federal government. But the federal stimulus money comes with a condition: The state may not use it to replace other Ohio money.

To qualify for the stimulus money, Ohio must spend at least what it spent three years ago on K-12 in the upcoming 2 years. Without the $851 million from slots earnings, the state might not be able to qualify for the money.

Ohio could petition for a federal waiver to spend more for 2009 but it is not clear whether that would be approved. An adverse decision from the Ohio state Supreme Court cast a shadow on whether the slots plan of Governor Strickland to install 17,500 slot machines at 7 horse racing tracks by May 2010 will push forward.

The Supreme Court said that the slots plan is subject to a state voter referendum in November 2010. Strickland cannot re-allocate money into the K-12 budget from elsewhere without approval from the legislature.

Gov. Strickland, Senate President Bill Harris (Republican-Ashland) and House Speaker Armond Budish (Democrat-Beachwood) are scheduled to meet to talk about the issue. Gov. Strickland’s Press Secretary Amanda Wurst said that the governor has yet to decide on his next step.

 

Monday, 30 November 2009
Alex Van Der Butz