Slot Machine Revenue in Florida Still Below Projected Estimates

The amount of gaming taxes from slot machines in the state of Florida is still not in line with projections made earlier by gaming analysts. This year around $187 million was received in the form of slot taxes from racetrack casinos in South Florida as opposed to the projections made in 2004 before a referendum.

The state’s Office of Economic and Demographic Research had estimated in 2004 that tax revenue would be between $200 million to $500 million depending on the tax rate. Florida slots initially had a tax rate of 50 percent but that has dropped to 35 percent since 2010. South Florida is the only region where slot machines are legal in the state as a result of voters approving a referendum in 2004.

The Broward and Miami-Dade counties have separate referendums as well on the issue and have also approves slot machine gaming.

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Revenue from slot machines across eight casinos located at horse tracks, jai-alai frontons and dog tracks totalled $537 million for the year ending June 30. This is an increase of 3 percent over last year when it stood at $521 million. Poker rooms saw much lower revenue recording $41 million in the same period.

The Isle Casino is the best performing casino in the region with revenues of $143 million. The casino is located close to Palm Beach County where slots are barred, enabling the casino to benefit from traffic across the county. Casino officials have stated that around one-third of its business comes from beyond the county.

The newly re-opened The Casino @ Dania Beach in Broward County has been doing well and has made up for the losses sustained by the established casinos in the area. The Gulfstream Park Racing & Casino and rival Mardi Gras casinos have both seen a decline of $1 million in their revenue. Gulfstream reported revenue of $48 million while Mardi Gras saw revenue of $46.8 million.

Since tribal casinos do not need to report financial results, their tax pay-outs are used to estimate their revenue. Based on this, it has been estimated that Seminole Hard Rock Hotel & Casino makes as much as the combined revenue of all South Florida pari-mutuels. According to recent estimates, the seven Seminole-run casinos in the region have revenues of $2.2 billion across slots, poker and other table games.

The tax money collected by the state through slots machines could see an upsurge if the judgement in a case that is currently before the Florida’s Supreme Court permits counties to offer slots. If this happens it could result in at least six more counties in Florida adding slot machines to their properties.

Adrian Sterne

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