Senate bill claiming to crack down on ‘illegal slot machines’ clears committee, but some question increased penalties, citing confusion of the proposed law

Supporters of the Compact expect a legal challenge.

A bill that would enhance penalties for those who operate an illegal gambling operation has cleared its first committee hearing, despite concerns about enforcement and confusion over various elements of the bill.

The Regulated Industries Committee cleared the measure (SB 1046) on a 5-2 favorable vote. Democrats on the committee — Sens. Shevrin Jones and Rosalind Osgood — were opposed.

The bill, broadly, increases penalties for illegal gambling activities from a second-degree misdemeanor to a third-degree felony. It also would create a staggered penalty, increasing to a second-degree felony on second offense, and first-degree felony on third and subsequent offenses.

The proposed penalty would increase to a second-degree felony if the illegal gaming operation is located within 1,000 feet of certain locations, such as a place of worship; a public school; a public or private university or college or other postsecondary educational institution; a child care facility; a park, community center or other public recreation facility; a mental health facility; a substance use disorder treatment center; a mental health counseling facility; a recovery residence; an assisted living facility; a pain management clinic; public housing; or a convenience store.

The penalty also would increase to a second-degree felony if someone possesses “a destructive device or a weapon” that is not a firearm. If they possess a firearm, the penalty would be a first-degree felony.

“The gaming industry is complex …. the Gaming Commission is providing education to law enforcement, but the confusion that is happening isn’t with law enforcement, it’s with the individual citizens that want to comply with statute. They want to do the right thing, said subject matter expert John Zachem, representing the Amusement Machine Operators of Florida. “In Florida, we have ads saying that sports betting is legal is here — great, but is it legal in the entire state? No, it’s legal in certain areas. There’s nuances to it.”

“Unfortunately, we have to stand in opposition … because this bill punishes people for not being aware of the nuances occurring …. These nuances are going to punish the little guy,” he added.

The bill would also exempt the Florida Gaming Control Commission from Chapter 255 in state statute, allowing it to “purchase, lease, exchange, or otherwise acquire any land, property interests, buildings, or other improvements” to allow it to secure or store “any seized slot machine or any other contraband.”

The Florida Gaming Control Commission Executive Director, Louis Trombetta, was on hand during Tuesday morning’s committee hearing to answer questions. He explained the exemption for acquiring land or other property to store seized machines or other contraband has become necessary because law enforcement partners have reported difficulty finding space to house such property.

He said the bill, if approved, would “get more buy-in” from law enforcement in the fight against illegal gambling.

But Democrats on the committee weren’t convinced. Both Jones and Osgood expressed concern that individuals may not know they are breaking the law.

“I don’t believe the knowledge would matter,” Trombetta said when pressed on the issue.

At least one Republican agreed the bill needs work. Sen. Jason Brodeur, who chairs the Appropriations Committee on Agriculture, Environment, and General Government where the bill heads next, said Trombetta should tell bill sponsor Sen. Jonathan Martin that the bill still has “some hair on it.”

Sen. Travis Hutson, who chairs the bill’s final committee stop in Fiscal Policy, also suggested — though less directly — that some tweaks should probably be made before the bill lands before his committee.

Other provisions within the bill ban advertising illegal gaming operations and set enhanced penalties based on the number of illegal machines in operation at a particular property. For locations with more than one machine, but less than five, the penalty is set at a second-degree felony, while having more than five would be a first-degree felony.

Those in nonsupervisory or non-ownership roles would be subject to a first-degree misdemeanor at an illegal gambling site.

That’s one provision Jones and Osgood referenced in their concerns over the bill.

“I don’t think that you are intentionally … trying to create these rules to harm or hurt these individuals,” Jones said, adding that the bill as currently written carries some unintended consequences.

Osgood added that she didn’t believe someone, perhaps who is only a teenager looking for a job, should be subject to criminal penalties for offenses they didn’t know were against the law.

A representative from a Veterans of Foreign Wars (VFW) chapter in Daytona Beach also spoke against the bill, noting that his organization uses gaming machines to contribute charity to the local community and the difficulty determining which machines are legal and which are not.

Trombetta noted the Gaming Commission website contains frequently asked questions to help navigate such issues, but the VFW representative said that wasn’t good enough.

In addition to other provisions, the bill also recommends sentencing to consider how much revenue was made from illegal operation because “such defendants are able to post monetary bail using the proceeds of their unlawful enterprises to defeat the social utility of pretrial bail.”

A similar bill (HB 189) has been filed by Rep. Michelle Salzman in the lower chamber. It awaits its first committee hearing.