When
Miami-Dade County’s pari-mutuels roll out the propaganda
machine on Jan. 29, they’d do well to keep school
funding deep in the background. Just use some other line
of reasoning, like, “Hey, gambling is already allowed in
pari-mutuels — why not slot machines?” Or maybe, “Well,
Broward has ’em, why not us?”
The referendum was
scheduled during the Democratic and Republican
presidential primaries by the Miami-Dade County
Commission. It will be a do-over from an election held
back in 2005. During that election, pro-casino forces
touted how much money would be raised for public schools
from slot machines. Broward voters bought the pro-casino
arguments, passing the initiative. Miami-Dade voters
didn’t.
But the education
argument just isn’t going to fly anymore. Las
Vegas-style slot machines in Broward were predicted to
gather $196 million for public schools statewide. But,
according to a recent Miami Herald article, only
$113 million was collected from slots. State legislators
reportedly are scrambling for another $45 million now
for state schools.
It isn’t because
people aren’t gambling on slot machines. The Florida
Council on Compulsive Gambling reported a 25 percent
increase in calls, mainly from South Florida and mainly
regarding slots.
Broward pari-mutuel
operators blamed what they called a high tax rate on
slot machine revenue — a 50 percent tax — that they
claimed cut into their marketing budget.
“Relief” was on its
way. A bill that would have allowed casinos to collect
state credits from taxes charged by cities and counties
passed the Senate, but was rejected in the House of
Representatives. Also not passing, it turns out, was a
bill that would charge slot machines only a 30 to 35
percent tax rate. Casinos argued that a lower tax rate
would enable them to run more commercials about their
particular slot machines and compete with casinos on the
Seminole and
Miccosukee
reservations, which aren’t charged any state taxes.
But then again, tax
credit for casinos translates to even less of a share
for public schools. Wasn’t public education the whole
point of asking voters in Miami-Dade and Broward
counties back in 2005 if they wanted slot machines?
A bill allowing video
lottery terminals in pari-mutuels also died; however,
regulations allowing them to have 2,000 slot machines
instead of 1,500 did pass. Yet many Broward casinos
don’t see the point. Dania Jai-Alai just shelved plans
to build a giant casino on its premises, claiming the
tax rate reduces the profitability of slots
significantly.
It’s a catch-22 that
Miami-Dade pari-mutuels are sure to consider as they
seek their slot machine prize: Make only moderate
profits with a 50 percent tax rate or lobby the state
for a 30 percent rate or tax credits that will mean less
money for the schools. If Miami-Dade pari-mutuels are
wagering on slots, expect them to hedge their bets by
fighting for a lower tax rate.
Pro-casino forces, if
they relaunch their lower tax rate bid, likely will
argue that money for more marketing would translate to
more revenue sent the way of public schools. Well, calls
to the FCCG are already on the upswing. Is an extra
revenue stream for schools statewide (the pool of money
would also be shared with all the other counties that
don’t allow slot machines) a fair tradeoff for more
Miami-Dade residents becoming hooked on gambling?
Or maybe Miami-Dade
gaming institutions should really make a conservative
bet and not push too hard for slots at all. If the
remarks from pari-mutuel institutions are to be
believed, slot machines aren’t magic moneymakers in
Florida. Perhaps it’s best for Miami-Dade pari-mutuels
to capitalize on recent regulations allowing higher
stakes in poker rooms and to focus on their particular
specialties, whether horse racing, dog racing or jai
alai.
But using education
as a hook? That would
not be a good bet.