A few weeks ago, after the Florida Farm Managers forum at Jumbolair explained the pros and cons of de-coupling, several people were of the opinion that I favored de-coupling, as opposed to everybody else in the industry who opposed it. I did favor de-coupling, but only up to a point.

    The Florida Senate Regulated Industries Committee passed two pieces of legislation yesterday that, if passed by both houses of the legislature, will dramatically change the complexion of pari-mutuels in the state, for the better. The first authorized a $3 billion gaming compact with the Seminole Tribe; the second would allow most pari-mutuel facilities in the state to decide whether or not to continue offering their live product. 

    Here's a breakdown of the most important points:

    (1) De-coupling would be authorized for dog tracks, harness tracks, quarter horse tracks and jai alai frontons, any of which could discontinue their sport and still be allowed to retain their casinos and/or poker rooms. This option would not available for Gulfstream Park's regular meetings or for Tampa Bay Downs. In return, the facilities that opt to discontinue their respective sports, would have to contribute to a $25 million a year "purse pool" to the other entities.  

    (2) Summer thoroughbred racing is also included in the de-coupling plan, meaning the two months of racing at Calder would not have to be held, even by Gulfstream. Of course, if Gulfstream decided not to hold the meeting at "Gulfstream West," it would be the perfect time for John Brunetti to regain his thoroughbred permit and return thoroughbred racing to Hialeah Park, something he has been trying to accomplish for many years. This would be a major boon to South Florida owners and trainers, who would not have to close shop for two months. 

    (3) This blog has been calling for the state to reduce the 35% pari-mutuel tax since the day it began - the bill would do just that. The new tax would be 25%, and what a difference that would make. Here's an example: For the fiscal year 2014-2015, Gulfstream 's net slots revenue came to $49,103,653, and the state tax was $17,186,279, leaving Gulfstream with $31,921,374. At the 25% rate, the tax would have been $12,275,913, and Gulfstream would have retained an extra $4,910,366. That's significant.  In addition, facilities with slots would be allowed to add blackjack to their menus. Another major source of revenue for all concerned.

    This bill, of course, has just passed through a senate committee. None of the resulting rhetoric may be relevant, and, the Florida House and the Seminole Tribe are expected to oppose the bill. Some lawmakers have made the age-old stupid remark about the "expansion of gambling," and anybody who utters that phrase is living in the dark ages. We have more gambling in this country than anywhere in the world and it's not going to end. 

    Everybody should embrace this bill.  

    

     

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