Proposed tax rates and type of machines are the major sticking points that are holding up slots operations at four Broward County pari-mutuel venues. The Florida House and Senate may be near a compromise but are in no particular hurry to legislate - there will be no special legislative session called to discuss the issue.

As the Legislature failed to pass a law regulating the slot machine operations during its regular session last spring, a judge has ruled that the pari-mutuels can commence slots operations. However, the four have agreed to await the legislation providing that it does not take too long. The judge’s decision has been appealed by Florida’s State Attorney and its anti-gambling Governor, Jeb Bush.

The Senate has proposed a starting tax rate of 35% on slot machines, rising to 55% on profits over $500 million. The House is seeking a 55% starting tax. The Senate considers that the Broward County voters authorised the operation of Class III Vegas-style slot machines. The House wants to limit the machines to Class II, the same as presently found in the Seminole and Miccosukee casinos in Florida. If Class III machines are permitted, the tribes will be entitled to negotiate compacts with the Governor to upgrade their machines.

When Broward agreed to slot machines at pari-mutuels, the tax revenues were to go to Florida’s education system. Many educators are anxious to get the legislative process resolved, an opinion shared by a previous education commissioner. With an estimated one million dollars a day waiting to be made, he would like to see the extra teachers and money for education that slot machines would bring sooner rather than later. (E-09.15.05)

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