A Florida Supreme Court case could ultimately decide whether slot machines are allowed in Jacksonville, but local officials are heading toward the betting window before it closes — just in case the odds land in their favor.
Two City Council committees convened in unison Thursday as a way to hash out questions and concerns about a possible November referendum that could bring slots to bestbet Jacksonville. It would mean extra revenue for the city, though how much would be determined on rates and business.
If voters approve and the state Supreme Court sides with another Florida county, the Arlington pari-mutuel could add 2,000 slot machines.
That would make it the largest non-tribal slots facility in Florida. It already is the largest card room in the state.
An economic impact estimate projects 2,000 slot machines would bring the city $5.7 million annually and add 1,500 direct jobs, 1,300 indirect jobs and $123 million in annual payroll to the area.
For the dozen or so council members who attended, there were no real objections to the expansion.
City attorneys, however, had concerns about bill language that would provide the city the money.
Whether slots should be allowed in Duval County is more of a policy decision, said General Counsel Jason Gabriel. Bestbet is offering 1.5 percent of gross revenue created by the slots, which is included in the bill.
But because that wouldn’t be enforceable and is considered “gratuitous,” as Gabriel described, a separate agreement would be needed between the city and bestbet officials.
“It’s in the backdrop, but it isn’t one of the policy considerations that should be given,” said Gabriel of potential revenue coming to the city from the gaming.
Susie Wiles, who represents bestbet, said a separate agreement wouldn’t be a problem.
If bestbet was an out-of-town company without a local track record, she could see why there might be concern among city officials about a deal. That isn’t the case, she said.
Gabriel said any Memorandum of Understanding or contract locking in the agreement would need to identify where the money would be placed.
The 1.5 percent figure also was briefly discussed by council members.
John Crescimbeni said other counties have different amounts, with one Panhandle community receiving as much as 3 percent of similar slots revenue.
Wiles said 1.5 percent of revenue coming back to the city “felt like a more than fair, not-required contribution to the city that’s been so good” to bestbet owner Howard Korman.
As to whether the figure was negotiable, Wiles said after the meeting, “I’d like to think Mr. Korman and ownership would be willing to talk to anybody, but it’s very generous.”
The bill will be heard by the Finance and Rules committees in the coming weeks, with hopes of being approved by the end of June.
Timing is key to ensure it’s placed on the November ballot. The state Supreme Court could take six weeks or six months to render a decision after arguments were heard this week. Once the window closes — if it closes — it likely won’t open back up.
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