Las Vegas did it and it now seems that Broward County racetrack casinos must tread the same path. With revenue falling below Wall Street expectations, it shows that the gambling public want more than slot machines. Las Vegas has diversified into entertainment, shopping, dining and more. The racetracks in Florida’s Broward County are finding that the biggest draw is still the Seminole Hard Rock casinos, where there is plenty more on offer than slot machines.

The latest figures for May show that the three operating racetrack casinos with the potentially more lucrative Class III gaming machines are still no match for Class II gaming at Florida’s tribal casinos. Profits at the commercial operations are hard hit by State gaming tax and other restrictions, but customers are still voting with their feet and returning to Hard Rock venues. It is estimated that machines at Hard Rock make around US$500 a day, compared to US$202 at The Isle’s Pompano Park, US$173 at Mardi Gras Racetrack & Gaming Center and just US$70 at Gulfstream Park Racing & Casino.

Marketing and promotions have had much to do with the Seminole resurgence in Florida’s gambling market. The tribal casinos have no compacts with the state government so all profits are retained, giving a practically limitless budget for promotions and advertising. The commercial casinos cannot compete at this level, but it is not only budget restrictions that cause the less than sparkling performance of Broward’s racinos. They have to offer more than gambling and start to invest in hotels, restaurants and other entertainment.

Florida’s citizens may wish their Governor, present and previous, had negotiated a compact with the Seminole and now be able to benefit from a share in tribal casino income. As things stand, the tribe is doing very well without any concession to upgrade to Class III gaming, as now legally entitled under federal law, and the State is getting nothing. The Seminoles appear to be holding a winning hand. (E-06.25.07)

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