Casino operators take on Disney in Florida battle over tourists

[mickclub1955]

This was in my local paper this morning and I thought it was interesting.

By TOLUSE OLORUNNIPA

Bloomberg NewsFebruary 5, 2014


TALLAHASSEE, Fla. -- To bring Las Vegas-style gambling to Florida, casino operators like Sheldon Adelson are sending more than 100 lobbyists to the Capitol to battle their biggest adversary: Mickey Mouse.

The clash pits casino operators Genting and Las Vegas Sands, controlled by billionaire Sheldon Adelson, against Walt Disney Co., which runs theme parks and resorts near Orlando, and may face new competition for convention business. Companies on both sides of the dispute are sending lobbyists and campaign checks to Florida lawmakers, who say they'll consider expanding gambling this year.

A state-commissioned study found that full-service casinos and their associated hotels could generate $1.5 billion in spending annually in Florida, making the fourth-most populous state an attractive target for the gambling industry as it pushes to expand in the U.S. The outcome is critical for Disney, as the world's largest entertainment company seeks to protect its Walt Disney World Resort, which includes theme parks and five convention facilities.

"Gambling interests in Las Vegas and Atlantic City are looking for new territory, and opening Florida to them would be tremendous," said

Robert Jarvis, who teaches gambling law at Nova Southeastern University in Fort Lauderdale. "The fear for Disney is that instead of people going to Disney and dropping their disposable income there, they'll go to the destination casinos and drop their money there."

Florida law limits gambling to eight Indian casinos, which offer Las Vegas-style gambling with the exception of craps and roulette, along with 31 pari-mutuel facilities. Casino operators want lawmakers to authorize as many as three resorts in South Florida that would offer the same range of games as in Las Vegas.

Casino resorts -- which feature hotels, meeting space, gambling and other entertainment -- would compete with Burbank, Calif.-based Disney for tourists and conventions, Jarvis said.

Disney has 700,000 square feet of meeting space in its Florida resorts, according to the company's website. Genting said in 2012 it wanted to build the world's largest casino in Miami with 750,000 square feet of meeting space.

Genting's allies include Associated Industries of Florida, a business trade group that on Jan. 15 unveiled a new website and marketing campaign touting casino resorts as a "huge magnet for convention and trades shows." Lobbyists for casino operators say an expansion will bring jobs and tourists and boost the economy.

Disney argues gambling would hurt the state.

"The massive expansion of gambling that would come from legalizing mega-casinos would be a bad bet for Florida's taxpayers, tourism brand and existing businesses," said Andrea Finger, a Disney spokeswoman, in a statement.

[1DisneyNut]

I am all for it. Large casinos with upscale resorts and restaurants would bring much needed competition. WDW needs some serious competition to force the corporate suits to move their focus back to customer satisfaction.

[Dsnygirl]

I'm with 1DisneyNut... I can't see Disney raising their prices if numbers fall b/c people split their $$ for a new experience... instead, I see them having to compete with LasVegas type hotel prices... Universal would have to compete, as well... might be good for the consumer. We'll see... not a professional in this area, so just my ...

[MNNHFLTX]

It should be up to residents/voters in Florida as to whether expanding the casino industry there is a good idea. My first thought was that a 750,000 sq. ft. casino certainly would not help the traffic situation in Miami.

[AgentC]

As someone who lives here I find it interesting that the out of state coverage is making this a battle between Disney and gambling. Most of the local articles barely mention Disney and more concerned with fixing the loop holes in the state gambling laws and how it would affect the agreement the state already has with the Seminoles. Put that together with the fact that the state shut down "internet cafes" last year which include a scandal where the Lt. Governor had to resign due to her ties with one of the companies being investigated plus it is an election year and you come up with a very complicated situation.

[Scar]

Disney argues gambling would hurt the state.

"The massive expansion of gambling that would come from legalizing mega-casinos would be a bad bet for Florida's taxpayers, tourism brand and existing businesses," said Andrea Finger, a Disney spokeswoman, in a statement.

Why?

[DizneyFreak2002]

Why?

Because Disney is already losing market share to Universal... They would lose more if casinos move into the area...

[Scar]

Because Disney is already losing market share to Universal... They would lose more if casinos move into the area...

I understand why it's bad for Disney, but why is it... "a bad bet for Florida's taxpayers, tourism brand and existing businesses."

[DizneyFreak2002]

I understand why it's bad for Disney, but why is it... "a bad bet for Florida's taxpayers, tourism brand and existing businesses."

It's not... Disney is just spinning nonsense cause they are already shaking in their boots... In Orlando anyway..

I'm sure the checks are being cut as we type this to their high priced lobbyists... People will be getting rich during and after this fight...

[Ian]

I think the residents of Florida should ultimately decide if they want this or not, but put me in the camp of "more competition is needed for Disney."

[Hammer]

As someone who lives here I find it interesting that the out of state coverage is making this a battle between Disney and gambling. Most of the local articles barely mention Disney and more concerned with fixing the loop holes in the state gambling laws and how it would affect the agreement the state already has with the Seminoles. Put that together with the fact that the state shut down "internet cafes" last year which include a scandal where the Lt. Governor had to resign due to her ties with one of the companies being investigated plus it is an election year and you come up with a very complicated situation.

Yes, this situation is not as simplistic as out of state papers make it out to be. This will take away not just from Disney, but from all of the Florida theme parks. You just hear about Disney because it is the largest. NONE of these corporations are happy about this. I could see where a couple says "let's drop the kids at the kids' club and we go out to dinner and gambling at XYZ casino instead of going to Emeril's at Citywalk".

For the once a year trip we make to the casinos, Mom would like if they got "real" casinos in Florida as she likes to play roulette. I think she would vote for it. Currently, she gets her yearly fix when she visits us in NJ and we go to AC.

[MississippiDisneyFreak]

I'm thinking it wouldn't necessarily hurt theme park ticket sales, but might put a hurting on the resort revenues and restaurants. If mom and dad get to stay in an upscale hotel for $99 a night with perks like discounted or free buffets, why pay Disney $300-$500 a night to stay there. I'm sure the casinos will be more than happy to run shuttles to the theme parks for their guests' convenience. Yep it may run prices down, could be a good thing

[Altair]

Within a year there would be a casino on Disney property. Don't kid yourselves.

[AgentC]

Just to be clear, the casinos that are being proposed are in only South Florida right now- Miami Dade and Broward. Anything outside those two counties is extremely unlikely without significant changes to the Seminole contract which gives them exclusive rights to "Las Vegas style" gambling outside those two counties

The speaker of the FL House has said that if the House agrees (the bill is Senate based) do approve it, he wants a constitutional amendment preventing any further expansion of gambling without a statewide voter referendum.
This is a crazy state and I'm sure they'll be a lot more conversation leading up to November.

[VWL Mom]

Just to be clear, the casinos that are being proposed are in only South Florida right now- Miami Dade and Broward. Anything outside those two counties is extremely unlikely without significant changes to the Seminole contract which gives them exclusive rights to "Las Vegas style" gambling outside those two counties

The speaker of the FL House has said that if the House agrees (the bill is Senate based) do approve it, he wants a constitutional amendment preventing any further expansion of gambling without a statewide voter referendum.
This is a crazy state and I'm sure they'll be a lot more conversation leading up to November.

Thanks Cindy

[Hammer]

Just to be clear, the casinos that are being proposed are in only South Florida right now- Miami Dade and Broward. Anything outside those two counties is extremely unlikely without significant changes to the Seminole contract which gives them exclusive rights to "Las Vegas style" gambling outside those two counties

The speaker of the FL House has said that if the House agrees (the bill is Senate based) do approve it, he wants a constitutional amendment preventing any further expansion of gambling without a statewide voter referendum.
This is a crazy state and I'm sure they'll be a lot more conversation leading up to November.

Thanks for clarifying, Cindy! My scenario was more long term forecasting, but a lot of other things have to fall into place for it to happen. I have always thought the deal the state of Florida has with the Seminole nation is horrendous. My parents went once to the Seminole Hard Rock outside of Tampa and hated it. Mom will stick to NJ and go to a real casino .

[Arielfan98]

Well if Disney got their act together and re-instituted another pleasure island they might not have to worry about a casino threat

[Gator]

I'm thinking that the Disney spokesperson is right. When people think of coming to Florida on vacation, they think of "family friendly" vacations. That is what Florida attracts and it ought to stay that way. You open up casinos, then you put out the welcome mat for the filth of the galaxy to show up once a year, or even move there.

I live next to NV and go there for conventions for business. Even the "clean" casinos are most definitely not family friendly. As for Disney getting competition, puh-leeeeeze. The next resort they build will be the "all adult" resort, complete with casino, uber-bars, and Marvel showgirls. I say keep that trash in Jersey and Neveda.

[DizneyFreak2002]

I say keep that trash in Jersey and Neveda.

Trash, really? If it weren't for trash, MK wouldn't see 18 million visitors... If trash were to keep out of Florida, there goes half of WDW's attendance....

BTW Florida already HAS casinos... or maybe you didn't know that... There goes your family friendly nonsense... It is that illogical thinking that got Pleasure Island shut down...

[TinkerbellT421]

I say keep that trash in Jersey and Neveda.

I found this sentence to be greatly unnecessary.

You are basically insinuating that anyone that gambles are trash. Rude. If you are against gambling for your personally belief, fine. No reason to slap other people in the face that may enjoy a date night out once in a while and spend THEIR money the way they want to.

Now, back on topic. Personally, I think it is a good idea. For a state that just put their own first "real" casino this year, it has done big things in a short time for the state money wise. And chalk me up in the category of "anything that puts some umph" into Disney heals to step up their game (no pun intended )