Florida Internet Casino Report Lacking Objectivity 11/24/09

The study commissioned by Florida Governor Charlie Crist to examine the
potential effects of online poker rooms and Internet casino gambling in
the state has been finished. Unfortunately, some of the writing has led
readers to question what sources the gaming survey employed.
In looking at the possibility of a law allowing intrastate online poker
or online casinos, the committee noted that some gambling opponents
"argue that prevalence of gambling addiction is three to four times
higher with Internet gambling than with non-Internet gambling."
No sources are footnoted, leaving the reader the impression that such
an argument can be substantiated by objective scientific research. But
Online Casino Advisory gambling analyst Sherman Bradley says the
overwhelming evidence points to the contrary.
"Studies done from Harvard Medical School to the government of South
Africa have found online gambling to be significantly less addictive
than land-based gaming. Only a recent UK survey, which has been
debunked for its questionable scientific conditions and
interpretations, has suggested otherwise."
Further, as noted by EGRmagazine, when examining the possible benefits
of a Florida intrastate law, the committee refuses to acknowledge data
from the Poker Voters of America saying almost $100 million a year
would be available in revenue from regulated online gambling. Instead,
the committee pushed aside the question of how many millions Florida
could make, asserting that "no objective estimates exist to assess
potential state revenues."
"For an objective report, the committee sure decides who to take at
their word, and who to discard empirical data from," says Bradley.
Florida Casino Gambling Pact Brings Strange Allies Together 11/12/09

Although it may have seemed the situation concerning Florida's disputed
casino gambling compact with the Seminoles was solved when Governor
Charlie Crist negotiated a settlement with the tribe, key legislators
are primed to block the advance of the accord. Interestingly, lawmakers
totally opposed to gambling are now saying they favor open gambling
throughout the state, as determined by counties, rather than an
exclusive deal limiting gaming largely to Seminole casinos.
The agreement reached between the governor and tribal representatives
gives exclusive table gaming to the Seminoles in the state, and also
makes slots an exclusive property with the exception of Broward and
Dade counties, the two locales that approved racino slot gambling. In
return, the tribe would pay Florida a sum starting at $150 million a
year.
But some legislators are saying that, while they were once vehemently
anti-gambling, they now believe there should be even more gaming than
the tribal deal allows, thus compelling them to vote against passage of
the deal.
“As anti-gaming as I was, it’s here, and it’s not going away,” said
Rep. Ellyn Bogdanoff, a Fort Lauderdale Republican. “You go to Plan B,
which is free market.”
The wave of sudden support for even more expansion in casinos and
gambling has some observers wondering if the move is just a ploy to
keep the Seminole legislation from passing. Gaming foes may temporarily
ally with free market gambling fans, only to desert them once the
potential compact is dead.
Lawmakers are asking themselves if any plan to allow more open gaming
law relaxation might generate enough revenue to stand up against the
massive sums promised by the Seminoles.
Florida Gambling Compact Wrangling Still Dragging on 10/21/09
After several years of intense arguing and negotiating, a gambling
agreement reached in August between Governor Charlie Crist and
representatives of the Seminole Tribe looked like the end of the gaming
debates for a while. But, even though the deal was based on a
legislative package that had passed a vote, key figures in the state
House are acting as if lawmakers have already voted down the package.
House Speaker Larry Cretul, among the leaders of the arch-conservative
version of the plan that would shrink existing gambling, wrote a letter
to the National Indian Gaming Council this week claiming negotiations
are at "an impasse." Cretul wants the federal government to force
Seminole tribal casinos to withdraw from offering table games and Class
III slots, as per the terms of arrangements prior to the first Crist
deal.
But Indian lawyers say that the Crist deal of 2008 was approved by the
federal government, and the state Supreme Court saying that Crist had
overstepped his authority did not negate federal recognition. The tribe
is willing to work on the new deal, but retains its rights to operate
under the controversial package until a new compact is signed.
"One big issue is who has the authority to decide if a compact is valid
or not," said NIGC Chairman George Skibine. Historically, tribal
compacts are registered with the federal government, not states.
Even if Cretul wins in the short run, the state is required by law to
negotiate in good faith, and stalled talks could lead to federal
granting of the right to move unilaterally to the Seminoles, leaving
them with all the gaming and none of the taxes they have offered to
pay, starting at $150 million a year. The game of chicken could result
in a gambling disaster for Florida.
Governor Christ will use transit session to address gambling 10/19/09

Almost since the day he began his tenure as governor of Florida,
Charlie Crist has been in a wrangle with legislators over state
gambling laws. Now, Crist may use a special session of lawmakers called
to discuss mass transit as a way to put an end to the gambling debates.
Crist's term as governor was only days old when he was forced to deal
with a ticking time bomb in the presence of an unresolved Seminole
gaming compact. Due to negligence by Jeb Bush's administration, Crist
had an urgent deadline to reach a deal, or face a possible unilateral
move by the tribe that would expand gambling without paying Florida a
penny.
Crist quickly reached an agreement, giving Seminole casinos the same
slot games available at racinos in South Florida as well as exclusive
table games. In return, the tribe would pay the state at least $100
million a year.
But state lawmakers said the governor had overreached his authority, and the state Supreme Court agreed, voiding the deal.
Lawmakers then took months to pass a very similar package, and, with
some tweaking of details, Crist was able to get Seminole leaders to
again agree to the compact. But legislators had adjourned, and said
they would not reconvene to discuss gambling, leaving the issue hanging
until 2010.
Now, Senate President Jeff Atwater wants a legislative special session
to discuss funding for high-speed rail traffic to link the state, and
Crist is all for it...especially if gambling is addressed at the same
time.
“That’s a great idea,” Crist said.
Las Vegas Fontainbleau creditors request liquidation 9/29/09
BY DOUGLAS HANKS
Creditors for the stalled Fontainebleau Las Vegas want to oust developer Jeffrey Soffer from the bankrupt project and have a court sell the unfinished high-rise, and have filed a lawsuit in federal bankruptcy court to do so.
``With completion of the Project by the Debtors not possible, a sale of the Project to a third party and liquidation of the remaining assets is the only viable course,'' the lenders wrote.
The request sets up a dramatic showdown between Soffer and a group of lenders who backed his $3 billion venture to transfer the Fontainebleau brand to a 3,889-room condo-hotel and casino on the Vegas strip. (The Miami Beach Fontainebleau is not involved in this lawsuit.)
Soffer's lawyers had not answered the motion filed late Friday, and his legal team did not respond to requests for comment Monday.
The motion marks a significant shift in the nearly four-month fight in bankruptcy court over how to salvage a project that needs an estimated $1.5 billion more to finish.
The Fontainebleau Vegas is the biggest single venture in the Soffer family's storied real estate empire, which Soffer and his sister Jackie Soffer run as the principal partners in Aventura's Turnberry Associates.
Lenders claim the Vegas Fontainebleau is so flawed they don't want to spend any more money on construction or even to fund the bankruptcy. Soffer's lawyers say they're negotiating with a potential buyer for the project, and need more time under bankruptcy protection to complete the deal.
Construction halted this spring after Soffer lost $800 million in construction funding from a separate group of lenders. The lenders suing for liquidation fronted roughly $1 billion for the effort.
Now those lenders have taken their argument to the next level, asking the case be moved from a Chapter 11 restructuring to a Chapter 7 liquidation. After spending $17 million in loan proceeds during bankruptcy, Soffer's team ``has nothing to show for it,'' the lenders wrote.
They cite three main conflicts of interest that would ``poison'' any effort by Soffer to negotiate a sale of the Fontainebleau Las Vegas:
• A Turnberry construction firm that served as general contractor on the Vegas project is also a creditor, with a $675 million lien on the property. The fee mostly consists of sub-contractor claims, along with a $64 million general-contractor fee.
• Soffer personally guaranteed at least a portion of roughly $250 million in debt used to build the retail area of the Vegas complex. Since he has no personal guarantees on the hotel or casino debt, the lenders argue, Soffer has an incentive to boost the price of the retail portion in a sale of the entire project.
• Executives working for the Vegas project also work for the Fontainebleau Miami Beach, giving Soffer a chance to shift expenses from Florida to the lenders in Nevada. They note Fontainebleau Resorts Chief Operating Officer Howard Karawan presides over both resorts but collects his paycheck in Vegas.
New Football League Sees No Problem with sports betting 8/11/09 by joshua mccarthy

Organizers of the new United Football League pooh-poohed NFL claims that gambling is a threat to sports, and said they hope sports betting helps their league as much as it has the NFL.
Gambling may be a subject that causes National Football League Commissioner Roger Goodell's eyes to bug out, but the innovators starting up the United Football League don't understand the NFL's problem with sports betting. UFL leaders have installed a team in Las Vegas, and say they hope gambling does as much for their game as it has for the NFL.
Michael Huyghue, commissioner of the UFL, says sports gambling has caused success for US pro sports leagues, and he welcomes lines being posted on his games by Las Vegas sports books.
"I think it's hypocritical to act like it (gambling) doesn't exist," said Huyghue in a press conference held at the Palms Casino. "We will embrace it."
The UFL will play its inaugural season with four teams, including Las Vegas, Florida, New York, and San Francisco. Teams are sprinkled with coaches and players with NFL experience, including Jim Fassel, who coached the New York Giants into the Super Bowl.
Huyghue asserted that, even if NFL executives refuse to acknowledge it, sports betting is essential in establishing public interest in games. He downplayed NFL terrors about disruption of game integrity, pointing out that sports gambling has co-existed for decades with football.
"The popularity of the NFL has grown abundantly because of that," said the new commissioner.
Plan to install slot machines at Miami International Airport raises some questions 8/8/09

MIAMI - Miami-Dade County officials are hoping they can someday install slot machines at Miami International Airport, but Florida gaming regulators last week had plenty of questions about the plan.
At the top of their list: Is it even legal?
In a letter to MIA, E.J. Barnes, a top official with the state's Division of Pari-Mutuel Wagering, said Miami-Dade County may not qualify for a pari-mutuel gaming permit because such permits are limited to "persons'' under state law.
MIA officials, desperate to plug massive operational deficits, hope to secure a quarter-horse racing permit that would allow the installation of slot machines beyond the airport's security checkpoints.
The permit, while potentially granting the county the right to slots, also requires the regular running of quarter-horse races, which the county would likely stage at an existing track such as Calder or Gulfstream.
Marc Dunbar, a gaming industry lobbyist who is handling the county's slots application, said he is "very optimistic'' it will succeed -- despite the legal questions being raised by state regulators.
He points to a decades-old Florida Attorney General opinion that says governments can operate gambling establishments.
The 1976 opinion was issued when the city of Hialeah was considering taking over the historic Hialeah Park horse track, Dunbar said.
"If the city of Hialeah could own one, the county certainly could," Dunbar said.
As far as the additional documentation requested by the state -- some of which state regulators wrote should have been in the original application but wasn't -- Dunbar said those materials would be provided in the coming days.
Dunbar disputed that notion that the airport had submitted an incomplete application, saying that the state's pari-mutuel division usually has several staff members review applications, and that some of MIA's backup materials may have been misplaced as the application was shuffled between division employees.
The state's response -- so far -- is typical of gambling permit applications. A spokeswoman for the state's pari-mutuel division confirmed that the number of problems identified in MIA's application is "comparable'' to other applicants.
Assuming Miami-Dade County can fill all of those initial holes in its application, state regulators would then begin a 90-day evaluation process.
Calls to Florida Gambling Hotline are up 7/17/09

A bad economy, the growth of televised poker and expanded gambling in
Florida all brought more calls to the state's hotline for gamblers,
according to a new study.
The Florida Council on Compulsive Gambling received more than 4,400
calls for help and information over the past 12 months, up 5 percent
from last year, the report released Thursday said.
The numbers are up 46 percent since 2005-06.
This year there have been twice as many unemployed callers as people
lose their jobs, then seek a quick hit to pay the mortgage or the food
bill, executive director Pat Fowler said.
"Eventually, they have tapped out all resources," she said.
The council reports twice as many calls from gamblers citing cards
(mostly poker and blackjack) in the past two years. The percentage of
card-player calls grew from only 16 percent in 2006-07 to one-third of
all callers this year.
Televised poker continues to drive people to the game, the council
reasons, and the Seminole Indian Tribe of Florida added blackjack at
three of its casinos in the past 13 months.
"With more gambling opportunities, you'd expect the number of individuals seeking help to continue to rise," Fowler said.
Requests for help through the hotline have gone from 3,002 in 2005-06
to 4,420 this year, just as Florida has added more poker, slots,
blackjack and lottery options.
But more hotline calls do not necessarily mean more people with
gambling addictions, casino executives say. The 1-888-ADMIT-IT number,
included in every casino advertisement, gets more play as casinos and
their advertising grow, they say.
Also, the Florida council doesn't specify whether the caller is a
concerned relative or friend or the person actually doing the gambling.
The council also doesn't provide treatment, but refers callers to
clinical counselors or Gamblers Anonymous meetings.
Data on how Florida compares to other states don't exist because the
national compulsive gambling hotline also takes calls, and the
nonprofit councils in other states do not release their numbers,
according to Keith Whyte, executive director of the National Council on
Problem Gambling.
About 1 percent of all Americans have a compulsive gambling problem,
says the Institute for Research on Gambling Disorders, and that figure
has held steady since the late 1970s, even with more casinos, lotteries
and online options.
"You might see a slight bump when an area first gets casinos, but it levels out," executive director Chris Reilly said.
Another 2 to 3 percent of Americans display some of the traits, but aren't full-blown compulsive gamblers.
Plus, problem gamblers rarely call the hotline because they deny having a problem or are too embarrassed, Reilly said.
Reilly, whose group funds gambling research, suggests that surveys and
academic projects provide more accurate information than extrapolating
from the number of hotline calls.
Meanwhile, South Florida Gamblers Anonymous meetings are attracting
more people, said Richard. (As in Alcoholics Anonymous, members provide
only their first names.) He is a recovering compulsive gambler who quit
14 years ago and attends about five meetings a week.
"Compulsive gambling is ready to explode for several reasons," he said.
"It's legal and even promoted by the state, with the lottery. There are
no telltale signs, track marks, dilating pupils, and you don't pass out.
"You don't get pulled over for gambling."
by nick sortel
San Diego and Florida Internet Cafes Busted for Illegal Gambling

San Diego police joined with state officials Wednesday to raid five
area Internet cafes on suspicions the businesses were conducting
illegal gambling. Members of the California Department of Justice
Gaming Unit combined with local authorities to seize 31 machines
believed to be gaming devices, along with over $11,000 in cash.
Police spokesmen said the cafes were using system that allowed purchase
of a playing card before using the machines. The games then acted like
slots or video lottery terminals, and patrons could win credits
registered back on the cards.
Cards could then be cashed in at the counter before leaving, said Lt.
Rudy Tai, a member of the San Diego Police Vice Squad. Tai said police
were responding after several civilian complaints were received.
Similar gaming machines were taken by police from Ocala, Florida cafes.
Florida state Drug Enforcement agents visited two Internet cafes and
seized 75 machines, operating under similar conditions to the
California games, and arrested four suspects.
Gaming experts, asked why illegal gambling could prosper in areas close
to legal gaming venues, speculated that onerous state taxes may prevent
legal operations from returning as well as the illegal slots.
Florida Scratch-off Lottery Vending Machines Coming Soon
The Florida Lottery will place vending machines selling scratch-off
tickets in grocery stores throughout the state. Roughly one thousand
machines will be installed at supermarkets starting in August to test
the success of the sales method, determining the future of automatic
electronic lottery machines.
A previous flirtation with vending machines found that instant ticket
machines are not guaranteed to produce revenue. Almost eight hundred
machines were placed around Orlando in the late '90s, but were found to
be mostly ineffective, only twenty turning a profit.
“You learn from your mistakes,” said Lottery Secretary Leo DiBenigno.
“They (the old machines) were not placed in ideal locations, so we’ve
learned from that lesson and learned from other states as well.”
Revenue from use of vending machines in the twenty-nine states using
them totalled $2.3 billion in 2006. Placement in groceries near the
front door is considered a priority.
Customers said the machines might improve their lottery experience.
Some noted that the see-through front of the vending device gives
patrons a chance to look at tickets before committing to a particular
game.
State economists say the machines should boost scratch-off sales by
fifteen percent, creating an additional $3.4 million in revenue.
“We’re happy with a conservative estimate,” DiBenigno said. “And we’re going to try hard to beat that estimate.”
Even though not all tribal casinos turn out to earn vast riches for members, Native Americans are grateful for all the casino gambling benefits, from dividends to college scholarships to jobs paying them a living wage.
Many mainstream sources consider tribal gaming as a license to print money, guaranteed to return enormous wealth to Indian operators. But gambling analysts say there is a great disparity among effectiveness of tribal casinos, and that gambling is not always a cure-all.
Analysts say tribes operating in states with or near large populations make the majority of revenues, while other barely break even. Gaming industry reports show that the Mohegan Sun Casino and Foxwoods Casino in Connecticut earned as much as over a hundred tribal casinos in Oklahoma.
The number of operating casinos keeps growing, as 425 gaming venues are run by 230 tribes in 28 states. But not all make tribal members rich and prosperous.
Still,the benefits to people used to living on the wrong side of the poverty line are relative. Not every tribe aims to create enough revenue to allow members to live off dividends.
"There are still quite a number of tribes who are happy to have just created jobs for their members, as opposed to generating a lot of revenues," said Jacob Coin, former director of the National Indian Gaming Association.
Noting that not every tribe can have the success of some of the California tribes, or the Seminoles in Florida, Coin still pointed out, "Having said all that, casinos are probably the only economic tool that has worked for Indians."
Tribal gaming generates $26.5 billion a year in revenue, but forty percent of that is earned by the California and Connecticut tribes.
Seminole Gaming Executive Says Casinos are coming to South Beach
James Allen, CEO of Seminole Gaming, says casino gambling is inevitably headed for Florida beaches down the road.
While Florida lawmakers have just reached a hard-fought compromise on slightly expanding gambling in the state beyond the status quo, one gaming expert foresees a much broader gambling scene in the state's future. James Allen, CEO of Seminole Gaming, says casino gambling is inevitably headed for Florida beaches down the road.
Allen, speaking at a panel discussion on gambling sponsored by the Jewish Federation of Broward County, said that ''there will be legalized gambling in South Beach in the next 10 years."
Allen specifically commented on the Fontainebleau Hotel, often the subject of speculation when Miami casinos are discussed, asserting that the famed hotel is 'built for gambling.''
Rumors of casino gambling coming to the ultra-chic area around South Beach have floated for years. Developers have proposals, both leaked publicly and hidden away, waiting for a change in law that would allow the creation of a gambling zone in South Florida.
And gaming industry insiders say that Miami, with its beaches, warm weather, and multinational culture and population, could succeed as a casino locale far beyond Las Vegas' potential.
But political infighting and staunch opposition to gambling in the northern, more conservative part of the state have made changing laws to accommodate casinos problematic. Just getting approval for the fait accompli of blackjack at Seminole casinos required over a year of politicking and debating.
Further, Allen notes that existing gaming operators, including the owners of racinos and the Seminole Tribe, are certain to lobby against losing the exclusivity they presently enjoy.
Published on May 16, 2009 by Ed Bradley
Will UIGEA Interfere with Legal Intrastate Online Gambling?
Even though the law against online casino payment transactions specifically exempts intrastate actions, there is more than adequate reason to wonder if the bill will still create problems for state licensed Internet gambling.
Intrastate online gambling has a good chance of being passed before the federal government gets to the issue of considering the repeal of the UIGEA. Even though the law against online casino payment transactions specifically exempts intrastate actions, there is more than adequate reason to wonder if the bill will still create problems for state licensed Internet gambling.
States are totally within the rights extended them in the UIGEA to regulate online gambling within borders. California is already preparing a bill to license online poker rooms, and other Internet gaming legislation is in various stages in Texas, New York, Florida, and New Jersey, among others.
Bot other legal state gaming ventures have accidentally been fouled by the UIGEA. Both Vermont and North Dakota have had credit card lottery sales blocked on the Internet by banks concerned with UIGEA vagueness.
Like intrastate online casinos, state lotteries are expressly allowed in the UIGEA language. But because illegal online gambling is undefined in the law, banks and credit companies are forced to decide what is legal. In cases like the lotteries, all transactions coded as gambling are denied.
If California, New Jersey, and other states do institute systems for regulating Internet casinos, the problematic nature of the UIGEA will be more of an issue than ever. Further disruption of legal operations may be the final blow in the iMEGA court case against the UIGEA, if the Department of Justice concedes that ongoing events are relevant in reviewing the bill. Special Interest Foes for the 18 years old full casino gambling
Among the changes contained in the Senate revision are provisions to lower the legal gambling age to eighteen and to bring casino games like roulette and craps to the state.
The Florida Senate is using the state Supreme Court rejection of a Seminole gaming compact to expand gambling in scope and availability. Among the changes contained in the Senate revision are provisions to lower the legal gambling age to eighteen and to bring casino games like roulette and craps to the state.
Faced with restructuring a popular plan negotiated by Governor Charlie Crist, the legislators decided only going even further would meet public demand. Where Crist's plan promised $100 million for state coffers each year, the new bill could generate over $1 billion annually.
The bill would continue to allow Las Vegas slots and blackjack at Seminole casinos. It would also extend blackjack rights to racinos in Broward and Dade counties. Roulette and craps would become Seminole casino exclusives.
As controversial as the gaming expansion promises to be, the low age requirement is sure to spark national news. Florida lawmakers assert if eighteen is old enough to join the military, strip in a nude bar, or vote, it's old enough to gamble.
But not only overly concerned parents will resist this clause. Powerful casino forces will align against the bill, lobbying heavily for its defeat. Gambling interests in other states don't want Florida, with its beautiful beaches and weather, offering the same games they do.
And those vested interests certainly oppose opening casinos to customers not allowed at their gaming establishments. Setting a lower age limit will invite millions of dollars from out of state to lobby against the law, says OCA senior gambling analyst Sherman Bradley.
"The groups will sport names like 'Protect Our Youth' and 'Save the Children', but they will be funded by Las Vegas casino empires and cruise ship lines eager to protect their special circumstances. It will be a tough battle for Florida lawmakers," Bradley said.
Online Gambling Driving Cruise Ship Industry to Port
But casino gambling is the engine driving the cruise industry, and if changes aren't made to keep gambling patrons interested in booking trips, cruise ships might be in the same boat as Atlantic City.
The cruise ship business is a multi-billion dollar industry driven by gambling. Now, as online casinos put gambling in the convenience of people's homes, the operators of cruise ship lines are trying to find ways to keep passengers coming aboard, including allowing wagering while still in port.
Typically, gambling on cruises begins after the ship passes outside the three-mile limit. Some ships have traditionally even run on routes known as cruises to nowhere, voyages in circles just far enough from land to permit legal casino gambling.
But the decline in bookings for cruises reflects not only the economic difficulties facing many today, but also the fact that gambling entertainment can be found at home at online casinos, or at local racinos and Native American casinos, without troubling with long deporting waits and expensive boarding charges.
According to a report at MSNBC, authorities at Port Canaveral, Florida, are considering allowing cruise ships to host gambling without ever leaving port. Like permanently moored riverboats and barge casinos that never move, some ships may opt to tie up and act as casinos that just happen to float.
It might not be enough to curb the decline in passenger listings. Paula Barnes, a personal assistant from Orlando, says, "I used to book cruises all the time. But three-quarters of my fun was playing slots and gambling. I can do that these days without leaving my house, and save a bunch of money as well."
Exotic locations, sun, sea, and getting away from it all may have appeal. But casino gambling is the engine driving the cruise industry, and if changes aren't made to keep gambling patrons interested in booking trips, cruise ships might be in the same boat as Atlantic City.