From this week Florida’s four pari-mutuel venues in Broward County can apply to the state for a licence to operate slot machines. Already months of initial preparations have been made to develop huge entertainment complexes that will transform the existing sites. Racing and slot machines will be combined into the new racino concept that could win licensing approvals for operators before the end of next month.

The Florida Department of Business and Professional Regulation, a newcomer to the slot machine industry, is charged with conducting background checks and reviewing security and floor plans. Once the four pari-mutuel organisations file for licences they must pay a US$3 million application fee to cover regulation costs.

Dania Jai-Alai fronton, one of the four Broward County pari-mutuels, is in the process of being bought by Las Vegas-based Boyd Gaming Corp. There have also been changes to management at the other venues, reflecting the changing nature of the businesses. The racinos are expected to generate millions of tax dollars for education throughout the state of Florida.

Whilst arguments continue over the imminent slot machine invasion – up to 1,500 at each facility – the potential operators are pushing forward with their plans. States such as Indiana and Illinois already receive over US$600 million in annual slot machine tax revenue. However, in Florida the racinos will have to pay a 50% tax on revenue generated by the machines. Undaunted, pari-mutuel executives are confident of success. (E-06.28.06)

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