As Florida’s legislature starts its special session, where slot machine regulations for the Broward County pari-mutuels will be on the agenda, the anti-gambling stance of the state governor is well-known. Jeb Bush may profess to be a staunch gambling opponent but Florida gambling statistics would seem to belie the fact. Under his tenure a bill was passed two years ago to allow tournament-style poker games, causing gross receipts to rocket from US$2.8 million in 2002/3 to US$38.1 million last year. Lottery sales have also increased by 52% since he took office.

The number of weekly Lotto draws has doubled, and the rising popularity of scratch cards has seen that revenue triple in six years to US$1.8 billion. Florida is not alone in seeing the instant lottery scratch cards take off, nor is it alone in raising to US$20 its top ticket price. In May this year the New Hampshire House approved a US$20 ticket with larger prizes, anticipated to give an additional US$5 million to state revenue over the next two years. California recorded US$3 billion from its lottery this fiscal year, a record for its 20 year lottery history. The figure was not attributed to the new 12 state MegaMillions but to the surge in popularity of ‘scratchers.’

California is only 5th on the league table of state sales of scratch cards, coming in behind New York, topping the list at US$5 billion, Massachusetts, Texas and Florida. In New Jersey last year instant ticket sales were over US$1 billion for the first time, four times more than a decade ago and representing 47% of lottery receipts. New Jersey offered the first scratch card lottery game in 1975 and by 1996 there were 36 games on offer. Last fiscal year, to June 30, there were 140 bringing in the record result.

Increasingly, the lottery scratch card is becoming known as a ‘paper slot machine’ where players spend their money for an immediate result. This instant gratification is being cited as more of a problem for compulsive gamblers who are likely to return time and again to buy the tickets, just as they would feed a slot machine. The double standards employed by governments both around the United States and globally are galling to many in the gaming industry. The authorities frequently promote lotteries whilst condemning other forms of gambling, when the chances of winning offer the worst possible odds and the option to gamble is far more readily available.

In Florida the arguments over slot machine numbers and tax rates for the four Broward pari-mutuels will continue this week. One argument is said to have been resolved – that the machines will be Class III, of the type in play in Las Vegas. If this is the case then the tribal casinos will be claiming their right to machines of equal standing. As there is the distinct possibility that a measure to repeal the constitutional amendment permitting slot machines will be back on the ballot next year, there is still uncertainty for investors at the pari-mutuel venues. There would appear to be no such uncertainty over the returns on the Florida state lottery. (E-12.05.05)

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