Destination Casino Gambling in Florida Becomes Hot Issue as Multi-Billion Dollar Suitors Circle Miami

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(MIAMI, FL) -- On the heels of the recent announcement a few months ago by Malaysian-based Genting Group to build the estimated $3.5 billion dollar, 6-tower 'Resorts World Miami' mega-resort that includes plans for Las Vegas-style casino gambling on premise, the lines are now being drawn in the sand as the State of Florida legislature considers new gambling license laws.

The issue at hand now is to allow, in a historically family-oriented tourism state, three new gambling licenses to Genting Group and other possible suitors like Las Vegas Sands who are looking at possible sites for their own multi-billion destination resort casinos in South Florida.

This week Florida State Rep. Erik Fresen (R-Miami), and state Sen. Ellyn Bogdanoff (R-Fort Lauderdale) are expected to file a new bill that would allow three new $2 billion-plus resort casinos in Miami-Dade and Broward counties and create an independent gambling commission.

At the local level, the Beacon Council, the local economic development organization of Greater Miami, has not yet taken a position on the subject for Miami-Dade County.

Miami Mayor Tomas Regalado tells the World Property Channel, "I am both optimistic and cautious regarding destination casinos in Miami. The fact is, the gambling aspect of the Genting project relies on whether or not the legislature grants licenses, which is out of our hands".

Beacon Council President Frank R. Nero said he would like to see an independent task force composed of diverse officials from law enforcement, labor, small business and the academic community, as an example, study the issues and economic and social impacts that large scale casino gambling would bring to Miami-Dade County, South Florida and the State of Florida.

"We need an objective, thorough analysis not paid for by the casinos or other partners invested in gambling, on the economic and social impact it would bring to this community," Nero said, adding that the study should take between six months to a year to complete, and the task force's report on recommendations should be sent to the governor and legislators prior to any vote on this issue.

"If it's a good idea, it will still be a good idea a year later after the report is completed," Nero said. "If it's not, we should have waited for the report."

He added, "I would not be doing my job if I did not at least raise these issues."


Here are some issues the Beacon Council task force would like to address:

• Land speculation could inflate prices of real estate and appraised value of land around the casino development, ensuring that no one would be able to afford to buy or rent near the property. Many merchants would have to find locations elsewhere. Residential displacement could be an end result.

• Only employees trained to work in the casinos will be able to get the higher paying skilled jobs at   casinos. Few locals are trained for these jobs currently. Why not use the time to begin training local workers so that those jobs indeed go to the local community? No casino should open unless and until the local workforce can be identified and trained. How can that be accomplished and who will pay?

• The impact on current businesses: Destination resorts can have a negative impact on neighboring businesses because consumers are encouraged to stay in the resort and spend their money there, instead of going out to restaurants, merchants, plays and other venues.

• The social costs of alcoholism, gambling addiction, prostitution, organized and street crime. Who pays?

• Traffic and costs associated: Who pays?

• The impact, if any, on the Miami Beach Convention Center, Performing Arts Center, new museum district, tourism in South Beach and the ongoing Wynwood and Design District revitalizations.

• The net tax to state and local governments.

• Regulatory requirements: Will employees with criminal records be allowed to work at the casino? What controls are needed? How can we ensure that local companies are equitably represented as   casino vendors and service providers?

• Substitution of tax revenue from other non-casino tax generation expenditures.

• Impact on current pari-mutuels and potential loss of tax revenue they generate.

• Support of prospective image of Miami-Dade County and South Florida as a diversified international business platform in addition to tourism and gambling centers. How can this be achieved?

Even as the Beacon Council reviews the impact of gambling in South Florida, other very powerful opponents to gambling in any part of Florida are lining up. The biggest and most formidable being Walt Disney World in Orlando.

Walt Disney World spokesman Bryan Malenius tells the World Property Channel, "We have studied this issue carefully and our position remains the same. We oppose the expansion of casino gambling in our state for many reasons, including the fact that it is inconsistent with Florida's brand as a family-friendly destination, and with efforts to diversify Florida's economy through research, innovation and entrepreneurship."

Then there are those who support casino gambling in South Florida.

Jessica Hoppe, General Counsel for Genting Group commented, "Multiple destination resorts will create significant new revenue for the state of Florida and up to 100,000 new jobs at a time when economic relief is needed. Equally important, Destination Resorts will raise the state's international profile for tourism and economic development, encourage foreign inbound investment, and help Florida compete with other states for jobs. Destination resorts have the power to transform Florida's economy. And the investment in Resorts World Miami is consistent with Genting's track record of doing business in Florida."

David Pearson, a well known Coral Gables-based public relations consultant whose specialty for over forty years has been Caribbean and Florida resorts, tells the World Property Channel that "Many of casino gambling's local opponents cite Las Vegas and Atlantic City as examples of what Miami will become if Genting Group's $3.8 billion Resorts World Miami development plan is approved."

"I think they are missing the main point of the project, for several reasons:

• First, they should be looking at successes, not failures, that have included casino gambling such as Singapore, Palmas del Mar and the Condado resorts in Puerto Rico, not to mention Monte Carlo. Miami has every amenity they have, and more.

• Second, Genting's plan goes way beyond casino gambling, which is a relatively small ingredient in their planned resort. They are calling for hotels, a convention center, restaurants, retail, condos, office space and spectacular water features - all of which are predicted to provide 45,000 permanent new jobs.

• And finally, casino gambling is already here. The Miccosukees and the Seminoles have already won that war."

Pearson further comments, "Former Miami Mayor Joe Carollo, hardly known as a visionary, says Genting will sweep in like Hernan Cortez marching through Mexico. Even Beacon Council President Frank Nero was quoted recently saying the project will be like a vacuum cleaner, sucking up the customers from surrounding establishments and have a chilling effect on the Wynwood and Design Districts."

"Like it did in Singapore?" asks Pearson.

See related news story on WORLD PROPERTY CHANNEL:

• Miami's New $3.1 Billion Mixed-Use Mega Project Unveiled, Largest Real Estate Development in North America Since 2004
• New $3 Billion Downtown Miami Resort Announced by Malaysia Casino Developer

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