Is Miami's Casino Bill Over the Top?

Genting’s spectacular promises raise legislative doubts

 

The Senate sponsor of the resort casino bill slaps down the Malaysian-based company with a warning to tone its rhetoric down at the first legislative workshop of the resort casinos bill.


From left, Genting principal Colin Au and Architect Bernardo Fort Brescia watch a video as the Genting Group unveils its plans for developing the Miami Herald site on Wednesday September 14, 2011.
From left, Genting principal Colin Au and Architect Bernardo Fort Brescia watch a video as the Genting Group unveils its plans for developing the Miami Herald site on Wednesday September 14, 2011.
PATRICK FARRELL / MIAMI HERALD STAFF

Herald/Times Tallahassee Bureau

In the debut debate over the resort casinos bill Wednesday, the head of Genting Americas offered legislators glittering promises and pitches — from guaranteeing non-stop flights between Asia and Miami, to $1.7 billion in new revenue to the state, to the purchase of thousands of Disney World tickets for resort patrons.

But the sales job, including the creation of 100,000 jobs, seemed “over the top” to the Senate sponsor of the bill and even to some of the Las Vegas companies that also want a piece of the action. The bill’s sponsor said Genting’s presentation may have backfired on the company.

“They actually kill their own case because, based on what they want to do, they’re going to put all the pari-mutuels out of business and every restaurant in Miami — and a couple hotels too,’’ said bill sponsor Sen. Ellyn Bogdanoff, a Fort Lauderdale Republican, after the meeting of the Senate Regulated Industries Committee. Genting’s numbers for the economic potential of three $2 billion mega resorts proposed in her bill, she said, “are over the top.”

During the two-hour committee workshop, potential competitors to Genting took aim at the company’s spectacular claims, and some took a swipe at the Bogdanoff’s bill as well. The bill calls for allowing three giant resort casinos to be built in Miami-Dade and Broward counties.

Donn Mitchell, chief administrative officer for Isle of Capri Casino in Pompano, told the committee that unless the proposal allows Florida’s existing pari-mutuels to operate the same games with the same tax rate as the new casinos, the industry will die and Florida will lose 15,000 jobs and $154 million in tax revenues.

“There is going to be significant cannibalization of existing facilities,” Mitchell warned. The Seminole Tribe, faced with new competition for its convention and out-of-state business, “will turn against the weaker competitor” and aim to peel off business from the pari-mutuels, he said.

Las Vegas Sands Vice President Andy Abboud, whose company is interested in bidding for a casino resort license if the bill is approved, agreed there would be market saturation with three mega resort casinos and urged legislators to take a “cautious, go-slow approach.”

Colin Au, president of Genting Americas, presented committee members with a one-page summary of an economic study the Malaysian-based company commissioned. The study forecasts total gambling revenue from three mega resorts at between $4.3 billion to $6 billion a year. By comparision, the Las Vegas Strip, long considered the hub of American gambling, generated $5.7 billion last year, according to the Nevada Gaming Control Board.

Abboud raised doubts about the wide disparity between Genting’s numbers and a preliminary report by state economists last week that projected that the total gaming revenue generated by the three resorts would be closer to $980 million a year.

“That’s an incredible variance,’’ Abboud said, urging lawmakers to study the numbers carefully. “I am not here to sell you on anything. I’m not here to make promises I can’t deliver.”

The debate offered a glimpse into the substantial doubts and political hurdles the resort-casinos bill faces in the traditionally gaming-averse Legislature.


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