It’s a bit of a case of apples and oranges when comparing State House and Senate bills regarding Florida gaming that are now up for review (Image: State House/Mark Foley)
If you were hoping for a quick jaunt to the casino during your family’s next trip to Disney World, you might be in for a disappointment. A newly proposed bill in the Florida House of Representatives would increase oversight of the state’s gaming industry, but it wouldn’t allow for the creation of new Las Vegas-style resort casinos in South Florida.
Proposed Commission in New Bill
The bill was proposed by Representative Rob Schenck (R-Spring Hill), the head of the House Gaming Committee. The bill would create a Gaming Control Commission that would be responsible for regulating all gaming in the state of Florida, with the notable exception of the Florida Lottery.
That part of the bill is very similar to the Senate bill, which would create a Gaming Control Board.
However, that’s about where the similarities end. The Senate bill would have authorized new casino resorts in Miami-Dade and Broward counties, while the House bill would leave that decision in the hands of the governor. That call would come as part of the upcoming negotiations with the Seminole Tribe of Florida, which currently has a monopoly on banked card games in gambling venues throughout the state.
The House is also proposing a constitutional amendment that would require that voters approve any expansion of gambling beyond what is approved by legislators this year. That measure would be particularly tough, as it would require 60 percent of voters to approve any future gambling expansion.
That’s much tougher than a similar amendment proposed in the Senate, which would also give voters the authority to limit future expansion.
The main effect of both the House and Senate bills would be to rein in the state’s gaming industry, providing it with more effective oversight. There are countless gambling issues without clear answers that have plagued Florida in recent years: from local referenda that attempt to expand the presence of slot machines throughout the state to sweepstakes parlors, the Seminole compact, and the lax regulation of horse and dog racing operations.
“We create a strong gaming commission, clean up significant and glaring loopholes in current law, and respect the governor’s role in negotiating a compact,” Schenck said. “The House also has a proposed constitutional amendment that will provide Floridians with the authority to decide future gaming expansion.”
Impediments to Bill Passage
But with several important differences in the two bills, many doubt that the Legislature will be able to pass a bill that both houses can agree on. The annual 60-day legislative session kicked off last week, giving relatively little time for the two houses to come to a consensus on how to clean up the state’s gambling industry. The time may be even more limited than it appears, as Senators say the Senate’s gambling proposal may still be a few weeks away from being debated and voted on. In addition, it’s unclear whether Florida Governor Rick Scott plans to begin negotiations with the Seminoles before the end of the legislative session.
The move to set guidelines for the state’s gambling industry comes after leaders in both houses agreed to undertake a major study on the issue last year in the wake of numerous lawsuits, controversies and pending issues.
By Dara Kam
TALLAHASSEE (The News Service of Florida) — The bills haven’t had a vote yet, but at least one Las Vegas casino executive is already dissing the gambling plans floated by Florida lawmakers.
Andy Abboud, vice president of government relations and community development for Las Vegas Sands Corp, equated the two proposals to "Lucy, Charlie Brown and the football."
Sands and casino giant Genting Group have spent more than two years trying to convince lawmakers to let them open shop in Florida. Others interested in the "destination resorts" include the Florida Panthers, the Hollywood Diplomat and the Fontainebleau in Miami Beach.
Credit Jamie Adams / Wikimedia Commons
The Senate measure (SB 7052), released last week, would allow for two casino resorts—one each in Broward and Miami-Dade counties—and would require operators to spend at least $2 billion on each project over five years, not including the cost of the real estate. Under the Senate plan, casino operators would pay $125 million, refundable to losing bidders, to apply for licenses. Permitted games in addition to slots would include blackjack, craps and roulette, taxed at a rate of 35 percent, the same as South Florida "racinos" currently pay on slot machine revenues. A House proposal (HB 1383), released late Monday night, does not allow for any expansion beyond what the state has now.
"We're disappointed in these bills and confused by the lack of substance," Abboud said Tuesday, the opening day of the 2014 legislative session. "Both the House and the Senate (bills) do not match the integrity of the conversations we have been having with the Legislature both publicly and in private meetings for the last year."
Abboud called the 35 percent tax rate combined with the $2 billion investment "unattainable" and "not sustainable." Casino operators had hoped for a 10 percent tax rate on games.
['Dictating terms' is becoming a common refrain.]
"The Senate bill will not bring integrated resorts to Florida. It will continue the status quo of leaving everything as it is, and Florida will continue to expand by gaming creep without a comprehensive policy," Abboud said. "We were led to believe that the Legislature was going to set forth a policy that would set the existing infrastructure and control growth in a meaningful way, and we're confused as to why they want to stick with the status quo. …There's nothing in these bills to say 'we want to make Florida a better gaming environment.' None of that is in there."
Abboud later softened his take on the bills, saying he understood that it was the first day of the session and pledging to "work diligently and patiently" with lawmakers over the next 60 days.
Brian Ballard, a lobbyist representing Resorts World Omni, a division of casino giant Genting Group based in Malaysia, called the bills a good starting point.
"It's early stages of a process that's going to evolve," Ballard said. "Is it perfect? No. but it's a good starting place to get the meat and potatoes of this bill started."
The future of the casino resorts—and any gambling legislation at all—rests in the hands of Gov. Rick Scott. Legislative leaders are waiting for Scott to renegotiate a $1 billion, five-year deal with the Seminole Tribe of Florida that sunsets next year. A major expansion of gambling such as destination resorts would have an impact on the amount of revenues the tribe pays to the state. House Speaker Will Weatherford, R-Wesley Chapel, is insisting that Scott must finalize an agreement with the tribe before any legislation is passed. Scott hasn't revealed whether he plans to seal the deal in time for lawmakers to act on it before the session ends on May 2.
And the chairmen of the House and Senate gambling committees are also holding their cards close to their vest regarding casino resorts.
House Select Committee on Gaming Chairman Rob Schenck, who sponsored the 411-page gambling bill, said Tuesday his chamber is focused on regulatory reform. The House plan would close a loophole in state law that allowed regulators to sign off on barrel racing as a pari-mutuel activity.
When asked if the casino resorts would ultimately make it into the House plan, Schenck, R-Spring Hill, said: "As of right now, day one of session, with the governor's office and the compact and all that stuff, it's just too early to give a fair answer to."
Senate Gaming Committee Chairman Garrett Richter was equally circumspect when asked if he was "dug in" over the casinos.
"I'm not going to answer that question now. It's too early in the process. Now that I know here's the Senate and here's the House (plans), why would I turn my card on how dug in or not dug in I'm going to be?" Richter, R-Naples, said.
The debate over the expansion of gaming in the state has been hot since several casino companies are looking to build resort casinos in South Florida.
The report is interesting, as casino proponents have always touted that the expansion of gaming through the state wouldn't be something new. To support that premise, they cited a 2011 Bernstein Research study as saying Florida was the fourth-largest gambling state.
But No Casinos' report states that as "misreported" and quite the opposite. Instead, the Bernstein study said Florida was the fourth-largest state for in terms of revenue generated from tribal gaming casinos.
Here are other past stories regarding Orlando's stance on the gambling topic:
Sheldon Adelson has a net worth of $28.5 billion, and he is using some of those resources to fight very expensive battles to get things done that he thinks are good for business.
The owner of Las Vegas Sands Corp., the largest casino company in the world based on revenue, is not only trying to slow the spread of online gambling in the United States, but is also tangled up in a struggle with Disney over massive casino resorts in the state of Florida.
Sands wants to build in South Florida, and it is willing to spend a ton. According to Bloomberg, Adelson and fellow casino industry titan Genting are sending 100 lobbyists to try to persuade lawmakers to authorize Las Vegas-style commercial gambling in the Sunshine State.
More than $3.4 million in campaign contributions have made their way to Florida lawmakers since 2012 via gambling interests. Disney’s sum is $1.7 million. Donations are expected to increase big time during the next election cycle, Bloomberg reported.
Disney, which already has an immense presence in the state, of course, operates theme parks and resorts, which have some overlap with what casino developers have in mind. While the gambling component sets Sands and Genting apart, parties on both sides of the argument want to lure tourists to their properties and see them spend in whatever capacity that may be.
According to Bloomberg, the state found that commercial casino resorts could generate $1.5 billion in spending annually in Florida. The state’s tourism industry is $71.8 billion.
Right now, Florida has tribal casinos (which are not considered commercial), a handful of them, in addition to 31 pari-mutuel facilities. The tribal casinos in the state have the forms of casino gambling you’d find in a Las Vegas casino, minus the craps and roulette.
What Sands and Genting could build would be very distinct from what is currently available for residents and visitors of Florida. Some call the plans “integrated resorts.”
Going back to the overlap. Not only do the casinos developers and Disney offer hotel accommodations and dining, but they all cater to conventions. Meeting space is a big draw, and new casinos could take business away from Disney in this area.
In an effort to protect its own self-interests, the Disney camp has claimed that casinos would hurt the “family-friendly image” of the state. “The massive expansion of gambling that would come from legalizing mega-casinos would be a bad bet for Florida’s taxpayers, tourism brand and existing businesses,” a Disney spokeswoman said in a statement.
Regardless of the arguments, history seems to be on the side of Disney. Commercial casino interests have been trying since the 1970s to get approval to build, but it hasn’t panned out. However, that hasn’t stopped Genting from recently purchasing hundreds of millions worth of real-estate for a possible casino resort in Miami. It really wants to get a license.
Legislators in Florida could rule on other gambling expansion issues this year, and leave the “mega-casino” issue for a non-election year. It’s really controversial.
To bring Las Vegas-style gambling to Florida, casino operators like Sheldon Adelson are sending more than 100 lobbyists to the state Capitol to battle their biggest adversary: Mickey Mouse.
The clash pits casino operators Genting Bhd. (GENT) and Las Vegas Sands Corp. (LVS), controlled by billionaire Adelson, against Walt Disney Co. (DIS), which runs theme parks and resorts near Orlando, and may face new competition for convention business. Companies on both sides of the dispute are sending lobbyists and campaign checks to Florida lawmakers, who say they’ll consider expanding gambling this year.
A state-commissioned study found that full-service casinos and their associated hotels could generate $1.5 billion in spending annually in Florida, making the fourth-most populous state an attractive target for the gambling industry as it pushes to expand in the U.S. The outcome is critical for Disney, as the world’s largest entertainment company seeks to protect its Walt Disney World Resort, which includes theme parks and five convention facilities.
“Gambling interests in Las Vegas and Atlantic City are looking for new territory, and opening Florida to them would be tremendous,” said Robert Jarvis, who teaches gambling law at Nova Southeastern University in Fort Lauderdale. “The fear for Disney is that instead of people going to Disney and dropping their disposable income there, they’ll go to the destination casinos and drop their money there.” Photographer: Jerome Favre/Bloomberg
Sheldon Adelson, chairman and chief executive officer of Las Vegas Sands Corp., center, watches a traditional lion dance during the opening of the Sands Cotai Central resort in Macau, China.
Indian Casinos
Florida law limits gambling to eight Indian casinos, which offer Las Vegas-style gambling with the exception of craps and roulette, along with 31 pari-mutuel facilities. Casino operators want lawmakers to authorize as many as three resorts in South Florida that would offer the same range of games as in Las Vegas.
Casino resorts -- which feature hotels, meeting space, gambling and other entertainment -- would compete with Burbank, California-based Disney for tourists and conventions, said Jarvis.
Disney has 700,000 square feet of meeting space in itsFlorida resorts, according to the company’s website. Genting said in 2012 it wanted to build the world’s largest casino in Miami with 750,000 square feet of meeting space.
Genting’s allies include Associated Industries of Florida, a business trade group that on Jan. 15 unveiled a new website and marketing campaign touting casino resorts as a “huge magnet for convention and trades shows.” Lobbyists for casino operators say an expansion will bring jobs and tourists and boost the economy.
‘Bad Bet’
Disney argues gambling would hurt the state.
“The massive expansion of gambling that would come from legalizing mega-casinos would be a bad bet for Florida’s taxpayers, tourism brand and existing businesses,” said Andrea Finger, a Disney spokeswoman, in a statement.
The company’s opposition isn’t based on any potential threat to its convention bookings, Finger said.
Florida’s warm weather and steady stream of international tourists make it attractive for casino operators looking to enter a conventions-and-meetings industry dominated by Disney, said Nick Iarossi, a Tallahassee-based lobbyist representing Las Vegas Sands Corp. Iarossi said he met with Adelson last week to discuss the Florida market.
“Florida is better suited than even a New York or a Maryland for an integrated resort,” Iarossi said. “Our tourism-based economy is really perfect for the convention and trade-show business.”
States that have legalized or expanded casino gambling since 2008 include Massachusetts, Maryland, Kansas, Indiana,Missouri, Ohio, Illinois, California, Colorado and New Jersey. In New York, voters last year approved a constitutional amendment authorizing as many as seven casinos.
Campaign Cash
The Florida debate is filling the campaign purses of lawmakers and Governor Rick Scott, a 61-year-old Republican who hasn’t said whether he favors allowing new casinos. Gambling interests have donated more than $3.4 million to Florida lawmakers since 2012, while Disney has contributed $1.7 million. Both sides are on pace to almost double their spending from the previous election cycle.
“It’s a major food fight, that’s the best way to characterize it,” said Dan Adkins, chief operating officer of Hartman & Tyner, Inc., which owns the Mardi Gras Casino in Hallandale Beach, Florida, and donated more than $200,000 to Florida politicians last year.
State legislators met Feb. 3 to discuss a rewrite of gambling regulations. They plan to introduce a draft bill next week and vote on a new gaming law during the 60-day legislative session that begins March 4, said state Senator Garrett Richter, a Republican and chairman of the Senate gaming committee.
Buying Land
While the gaming industry has pushed for Las Vegas-style gambling in Florida since the 1970s, lawmakers revived the debate in 2011, when Genting began buying more than $400 million of real estate for its Resorts World Miami project. The legislature in 2012 rejected a Genting-backed proposal that would have allowed the Kuala Lumpur-based company to build a $3.8 billion casino resort.
Opposition from Disney and others helped kill the plan, even as Southeast Asia’s largest casino operator spent more than $4 million on lobbyists and campaign contributions. Genting has continued to pursue a casino license.
The state’s racetracks, slot operators and Indian casinos are all jostling to protect, and possibly expand, their turf this year. The Seminole Tribe of Florida, which wants to renew its contract to operate the state’s only Las Vegas-style casinos, donated $500,000 to Scott’s campaign in September, the largest gift of the year. Adelson, whose Las Vegas Sands is the world’s largest casino operator, donated $250,000 in 2012, that year’s biggest gift.
Free Tickets
Disney, the Florida Chamber of Commerce and other anti-gambling interests have also increased their political contributions. Disney has given Florida politicians more than $400,000 in free theme park tickets and entertainment in the past year, state records show.
No Casinos, an Orlando-based group that hired 23 lobbyists last year to work against Florida gambling, invited lawmakers to a January screening of a documentary film it financed that warns casino operators “make big promises, exert their influence, then everything crumbles.” The group won’t reveal the source of its funding.
Deploying Lobbyists
Disney, a powerhouse in Florida politics due to its central role in the state’s $71.8 billion tourism industry, hired 34 lobbyists last year, according to state records. A similar number are working to defeat gambling this year, Finger said. Casino operators plan to deploy more than 100 lobbyists this year, according to state filings and interviews with company officials.
Disney is “one of the most powerful special interests around,” said Etan Mark, a lawyer for Miami Jai-Alai, a casino with 1,000 slot machines owned by Florida Gaming Corp. (FGMGQ) “The specter of getting targeted by Disney in an election, I’m sure, is weighing very heavily on a number of these state representatives as they consider what the next step is going to be.”
Genting is stepping up its campaign to influence lawmakers. Since last year, Genting companies have donated more than $1.1 million to Florida politicians, according to state filings. Carrie Thompson, a spokeswoman for Genting’s Miami project, declined to comment on the company’s strategy in Florida.
Hurting Business
State lawmakers haven’t released any proposed gambling laws as they approach the legislative session and campaign for re-election in November.
Richter, 63, the state senator, said at a Feb. 3 meeting of the gaming committee that he supports as many as two full-service casinos in South Florida.
“A destination resort in Miami would be a good thing for the state of Florida,” he said at the meeting. “It would attract new revenue dollars.”
Senator Gwen Margolis, a Democrat who serves on the panel, said that she opposes large casinos in Miami because they would hurt existing hotels and businesses.
In a legislature controlled by Republicans, many have sought to voice moral opposition to gambling while also keeping the door open to expansion proposals.
The Florida Chamber of Commerce, has made it a priority to defeat any gambling proposals this year, said its vice president, David Hart.
The goal is to protect Florida’s “family-friendly” image, said Hart. Disney, which is a top contributor to the Chamber’s political committee and has a seat on the board, has made similar arguments to lawmakers.
“This is going to be a real battle in the legislature,”Hart said. “Part of the reason is that the casinos, whether that’s the Malaysian Group, Genting, or whether that’s Las Vegas Sands, they need Florida a lot more than we need them.”
Whatever Mickey (Mouse) wants, Mickey gets—at least in central Florida. Therein lies a problem with the casino gambling debate going on right now in the Sunshine State.
An organization called No Casinos is leading the charge against legalizing casinos outside of Indian reservations. On GuideStar, No Casinos shows up as a 501(c)(4) established in 1990, but with its tax exempt status marked “revoked.” The address for No Casinos, per GuideStar, is 605 East Robinson Street, Suite 310, in Orlando, which is also the address of Consensus Communications (cited on this document as occupying suite 310, as well as other suites), a for-profit public relations firm run by one John Sowinski. Sowinski is identified in the press as president of No Casinos.
Sunshine State News columnist Nancy Smith makes no bones about her support of casino gambling as “a classier venue for adult entertainment,” which she prefers over “the growing mish-mash of mostly low-end options.” While the analysis of classy vs. low-end analysis puts us off a bit, she devotes a recent column to taking apart No Casinos by examining who—particularly Disney—might or might not be behind the organization, presumably with a revived tax-exempt status.
However, Smith doesn’t quite take No Casinos apart entirely. Sowinski answered a series of questions posed by Smith, who then helpfully attached the responses to her column. Although Sowinski declines to identify the financial backers of No Casinos, he asserts that the group takes no money from gambling interests, including the Seminole Hard Rock Tampa facility, which, with other Seminole-operated casinos in Florida, has a five-year agreement with the state for table games such as blackjack and a separate agreement on slots, paying the state $1 billion in revenues over five years.
The lurking question that Smith insinuates and Sowinski doesn’t quite deny is how much Disney is directly and tangibly involved in the No Casinos effort. In the New York Times, Lizette Alvarez and Michael Snyder do not specifically identify Disney as a financial backer of No Casinos, but implied other elements of potential hypocrisy on the mouse-company’s part. In contrast to its opposition to the expanded presence of casinos as harming Florida’s “family friendly” resort identity, the article notes that Florida is awash with legal gambling: racetracks, jai alai frontons, racinos, and the seven or so casinos of the Seminole tribe. Moreover, Disney itself has its corporate fingers in legalized gambling; it licenses the Marvel and Lucasfilm character images it owns for use on slot machines. (Disney representatives have since said they plan to end those arrangements.)
Family-friendly or not, Disney doesn’t want the competition of expanded casinos. It appears that the Seminoles don’t either, and even the racinos are in opposition to potential legislation that would authorize new destination casinos. While Disney may or may not be putting money into No Casinos, it is putting money into the campaign coffers of Florida politicians. Since 2012, Disney has donated $1.7 million to Florida’s Republican Party and $759,000 to the Democratic opposition. Other players in the gambling scrum include Sheldon Adelson, the owner of the Las Vegas Sands Corporation, and the Seminole tribe. Both donated $250,000 to Governor Rick Scott’s campaign coffers. We would guess that Adelson’s donation is to woo the governor to support casino expansion, while the donation from the Seminoles could go either way, given the expiration of their deal with the state in 2015. An additional $250,000 donation by Disney to the Florida Chamber of Commerce was followed by the Chamber’s donation of $250,000 to Scott’s “Let’s Get to Work” reelection PAC.
Big corporate money on both sides of the Florida gambling debate casts a pall over the issue. But a recent report, the first of a two-volume state-sponsored analysis of gambling, suggests some of the challenges:
There is big money behind the pro-casino forces, as Sheldon Adelson’s presence suggests. That could be an incentive to make gambling opponents ally with the likes of the moneyed Disney, even if there might be some hypocrisy in Disney’s motivations. As the report also notes, “In the battles between pro-gaming and anti-gaming political campaigns, the playing field is not level in one important sense: Those who oppose gaming’s expansion often succeed, but in many instances they have to continue doing battle in subsequent years. They have to win every time. Those who favor the expansion of gaming need to win only once.”
States have gotten smart about extracting revenues from gambling by relying on licensing fees, much like the deal Florida has with the Seminoles. According to the report, “In Florida, the holder of a slot machine license must pay an annual license fee of $2 million…in conjunction with its monthly tax payment, each permitholder pays a daily license fee. For jai alai, it is $40 per game. For greyhound permitholders, it is $80 per…for horse racing, the fee is $100 per race. For cardroom operators, the state charges annually a fee of $1,000 for each table when the application is submitted.”
The report details several kinds of generally unavoidable costs associated with expanded gambling: crime of all sorts, health problems associated with pathological or problem gambling, political corruption, personal bankruptcies caused by problem gambling, and more.
It’s tough for community groups to fight against wealthy political interests, and as a result, odd alliances sometimes emerge. In this case, the massive Walt Disney Company finds itself on the side of advocates against increased casino gambling.
It seems that Mickey’s owners would like to maintain that in family-friendly central Florida, “what happens in DisneyWorld stays in DisneyWorld,” and what happens in Orlando shouldn’t include casino gambling. But it would be good for everyone concerned if all of the lobbying interests, for and against expanded casinos, were to disclose their donors.—Rick Cohen
This article has been altered from its original form. The article initially asserted that casinos were present on Disney cruise ships that operated outside of U.S. waters; this is not the case. Disney representatives also say they intend to cease the licensing of their Lucasfilm and Marvel characters on slots.
HALLANDALE BEACH, Fla. — Just around the corner from the poker room and within shouting distance of the greyhound track here at the Mardi Gras Casino, the Amazing Spider-Man slot machine beckons gamblers with its spinning masked superhero and his nemesis the Green Goblin.
At the touch of a button, this Spider-Man can pay out fortunes or, more typically, deplete wallets.
But in the recently renewed battle over casino gambling in Florida this year, the popular Spider-Man slot machine delivers a different sort of jolt altogether. Spider-Man is one of a stable of Marvel superheroes that the Walt Disney Company acquired for $4 billion in 2009 and that continue to appear on slot machines, Internet slot machines and state lottery tickets. The lottery tickets have featured Iron Man and the Avengers.
Disney, a powerhouse in Florida because of its financial might and its sway over the tourism industry, has long led the fight against the expansion of casinos in the state, arguing successfully that gambling tarnishes Florida’s coveted family-friendly brand.
This year is no exception. For the second time in two years, state lawmakers are preparing to decide whether Las Vegas-style resort casinos should be allowed to open in Florida, a move that Disney hopes to thwart again. The company is so opposed to gambling that not even Disney cruise ships offer casinos, a mainstay of major cruise liners.
But in a nation increasingly awash in various forms of gambling, Disney is finding that keeping a constantly growing entertainment conglomerate completely removed from gambling is far more challenging than it used to be.
Asked whether Disney’s ties to the gambling industry, through Marvel, undercut its position on casino gambling, a Marvel spokeswoman said last week that the company planned to shed its connection to slot machines when the various licensing agreements expire. On Saturday, the spokeswoman added that Marvel had signed its last slot machine deal two years ago.
Spider-Man, Iron Man, the Incredible Hulk and others will begin to disappear from casinos and Internet gambling sites over the next “few years,” the spokeswoman said.
“Marvel discontinued plans to initiate or renew slot machine licensing arrangements as part of its integration with Disney,” the spokeswoman said. “The handful of remaining license agreements have expiration dates within the next few years.”
The spokeswoman also said late Saturday that Marvel currently has no active lottery deals and does not plan to sign any new one. Disney also faces a similar issue with its $4 billion acquisition of Lucasfilm last year. “Star Wars” characters, which have been featured in Disney parks for years, are also widely used in slot machines.
On Thursday, a Disney spokeswoman said the decision not to renew Lucasfilm and Marvel licensing agreements once they expired had been made recently. It had not previously been made public.
In the years since Disney’s acquisition of Marvel, gambling opponents and the company’s critics, including those seeking to open Vegas-style casinos in Florida, have accused Disney of being disingenuous in its campaign against casinos as new slot machines rolled out. Its competitors argue that Disney fears competition more than gambling.
“Disney’s internecine warfare against integrated resorts in Florida under this pretense demeans them significantly,” said Michael A. Leven, the president and chief operating officer of the Las Vegas Sands Corporation, which seeks to open a casino in South Florida.
A spokeswoman for Walt Disney World, Andrea M. Finger, said it could take several years for policies to align after two corporations merged, always a complex endeavor. But she said Disney’s commitment to keeping Vegas-style resorts out of the state was unwavering.
“We oppose the legalization of so-called destination resort casinos because this major expansion of gambling is inconsistent with Florida’s reputation as a family-friendly destination,” Ms. Finger said.
The decision that Disney, through Marvel and Lucasfilm, will phase out its slot machine licensing agreements comes at a pivotal time for Disney and its biggest allies, the influential Florida Chamber of Commerce and No Casinos, a nonprofit organization dedicated to keeping more casinos out of Florida. The groups are engaged in the latest chapter of a battle over the expansion of large casinos in Florida, an issue awash in lobbyists and money.
Gambling is already commonplace in Florida. The Seminole Tribe, which owns the Hard Rock brand, has seven large and small casinos in Florida with some table games but no roulette or craps.
Thoroughbred and greyhound racetracks, and jai alai frontons, all feature poker rooms, and in Miami-Dade and Broward Counties, the so-called racinos, like Mardi Gras, also offer slot machines.
The racinos also oppose Vegas-style casino gambling expansion.
Despite a decision last year to waylay a bill on expansion after fierce lobbying by Disney and others, the Legislature is now poised to take up the issue again. The decision stems in large part from the fact that the state’s five-year agreement with the Seminole Tribe expires in 2015. The agreement gives the tribe exclusive rights to table games like blackjack in their casinos. (Slot machines are covered under a separate agreement.) In exchange, the tribe pays the state $1 billion over five years.
The state and the tribe will soon have to negotiate a new agreement. Competition from full-scale private casinos in the state could scramble the deal and drain the state of $233 million a year, from the tribe, with no guarantee that tax money from expanded private casinos would offset the loss.
For Disney, the debate over casinos has grown more difficult in the past year as its relationship with Marvel becomes more obvious to theme park visitors and other Disney customers.
“Hypocrisy is in the eye of the beholder,” said Robert Jarvis, a law professor at Nova Southeastern University’s Law Center and an expert on gambling law. “If they were honest, they would just come out and say, it’s Business 101. We’re trying to protect our turf, and we’ve always attempted to do that.”
Marvel merchandise has been sold in Disney stores and gift shops since shortly after the Marvel acquisition. Now Marvel’s superheroes, including Iron Man and Thor, will soon be featured alongside Disney princesses and Mickey Mouse in some Disney parks. In November, Thor will become the first Marvel character to greet visitors at Disneyland in California. Captain America is expected on cruise ships soon.
Because of an existing agreement with Universal Studios, Disney World in Orlando cannot feature live Marvel characters or create Marvel rides. But merchandise is available.
The fact that Marvel characters crop up around the country in lottery tickets further complicates the issue for Disney. In Colorado this spring, shoppers could buy scratch-off lottery tickets featuring Iron Man. And in Idaho and Texas, the Avengers were featured on scratch-off tickets.
While some consider lottery tickets a benign form of gambling, Keith Whyte, the executive director of the National Council on Problem Gambling, said scratch-off tickets are a “gateway” to more serious gambling. Some tickets are even sold in vending machines, making them easily accessible to children, Mr. Whyte said.
For John Sowinski, the president of No Casinos, Disney critics are using the slot machine issue simply to distract.
“They want to change the subject,” he said of the large-casino interests. “They don’t want to have a discussion about the merits of the issue. If Disney wanted to be in the gambling business, they would be, on their cruise ships and elsewhere.”
TALLAHASSEE, Fla. -- Heading into a crucial election year, the two main political parties in Florida took large checks from gambling companies, insurers and other special interests during the first three months of the year.
But still the overall fundraising totals were somewhat lackluster - especially for Republicans - in comparison to the money the party raised during 2011.
State campaign finance reports filed late Tuesday showed that the Republican Party of Florida raised nearly $2.96 million during the first quarter of this year, while the Florida Democratic Party reported raising $1.15 million during the same period.
It was the lowest quarterly total reported by Republicans since 2009. But it also coincided with a time when Gov. Rick Scott reported raising more than $900,000 for a political committee that will assist him in his re-election effort. Scott held a major fundraiser for his committee just last week in Sarasota.
The money taken in by both parties will be important during a critical election year when all 160 seats in the Florida Legislature are up because of redistricting. Large checks from companies and other corporations cannot be used by the state party for any federal races in Florida.
Brannon Jordan, a spokeswoman for the Democrats, contended that the fundraising advantage for Republicans "does not translate into electoral success" since Democrats last year won mayoral races.
"Smart strategic investments trump fundraising and money can't buy approval for the GOP's extreme agenda," Jordan said.
Legislative leaders were barred from raising money for the party during the 60-day session that ended last month but that didn't stop many companies with a direct interest in legislation from sending money to both parties.
Blue Cross and Blue Shield of Florida gave a total of $400,000 in cash to the two parties, while companies involved in the heated battle over gambling this past session also made large donations. Lawmakers considered - and ultimately rejected - a bill that would have permitted the creation of large casinos in South Florida.
Casino opponent Disney gave nearly $130,000 to Republicans, while the Seminole Tribe of Florida, which runs its own casinos in Florida, also gave the GOP a check for $125,000. Casino developer Genting gave $100,000 while another company that includes Genting executives gave Democrats $150,000.
Other major players that donated money include utilities, unions, U.S. Sugar and charter school companies. Charter Schools USA donated more than $50,000 to the Republicans while the GOP-controlled Legislature was considering a bill to steer school district money to charter schools.
Koch Industries, the company affiliated with the Koch brothers, also donated $40,000 to the Republican Party.
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