Florida law passed for slots

December 9

Online slots fans in Florida are getting excited because new laws were passed approving slots in the state. Today, Magna Entertainment Corp. announced that legislation authorizing the operation of slot machines within existing, licensed Broward County, Florida facilities that have conducted live racing or games during each of 2002 and 2003 has been passed by the Florida Legislature.

This new development comes after Florida voter approval of Amendment 4 to the Florida Constitution on November 2, 2004.

Under the new law passed today, each of the 4 qualifying facilities will be entitled to offer up to 1,500 Class III slot machines, subject to a state tax rate of 50% on gross gaming revenues (GGR). All of the earnings from that tax will be used to help Florida education. Each of the 4 slot casinos will also be subject to a $3 million annual license fee intended to cover administrative costs.

In addition, each facility has entered into separate contracts under which Broward County and the City in which that facility conducts pari-mutuel gaming will receive an aggregate of 3.2% on that facility's GGR not exceeding $250 million and 4.5% on its GGR in excess. The legislation is now subject to review by Florida's Governor within 15 days of receipt.