Andrew Powell
The Senate Regulated Industries Committee unanimously advanced a measure that seeks to increase penalties for individuals or organizations involved in illegal gambling in the state of Florida.
Tallahassee Republican Sen. Corey Simon presented the bill (SB 1404) and explained that the legislation was a result of the violent and often organized crime associated with illegal gambling houses that are steadily on the increase.
“Illegal gambling in Florida is a growing crisis. Illegal gambling operations are spreading across Florida, exploiting weak penalties to operate with little fear of consequences,” Simon said. “Arcades with blacked-out windows are multiplying, run by criminal organizations that treat minor fines as cost of doing business. The Florida Gaming Commission has received thousands of complaints that this is just the tip of the iceberg.”
Murder, robbery and human trafficking are also heavily associated with illegal gambling houses, and according to Simon, these establishments also take money away from everyday Floridians.
“These illegal gambling businesses scam patrons with no oversight, rig machines and zero consumer protections,” Simon said. “They evade taxes while legal gambling facilities contribute millions to education. Worse, these establishments attract violent and organized crime, such as murder, robbery, drugs and human trafficking.”
The bill would make it a third-degree felony to operate a gambling house or mislead the public about the legality of gaming. It would be a second-degree felony for running an illegal slot business or possessing more than five machines, and a first-degree felony for trafficking illegal slot machines, and possible fines up to $500,000.
Local governments would also be explicitly banned from legalizing gambling activities that are illegal under state law.
“Without more substantial penalties, illegal gambling will continue to spread, syphoning money from Floridians, and fueling organized crime,” Simon said.
Committee Chair Jennifer Bradley, a Fleming Island Republican, had an amendment adopted that allowed veteran organizations to check the machines they have are in compliance with Florida Gaming Commission rules.
“This amendment allows a veterans organization to petition the Gaming Commission for a declaratory judgement on whether a machine they currently operate or one which they will purchase is in compliance,” Bradley said. “It provides that the Commission shall issue such declaratory statement within 60 days.”
Sarasota Republican Sen. Joe Gruters also had an amendment adopted that clarified limits on future employment for commissioners and staff and added language defining fantasy sports.
“This amendment seeks to close a loophole in our statutory ethics requirements of the Gaming Commission,” Gruters said. “The amendment clarifies that the Commissioners and staff cannot have employment with any regulated entities under the Commission for at least two years prior or following their employment with the Commission. The language includes a definition of fantasy sports that is taken directly from the compact with the Seminole tribe, so that the term can be referenced in a revolving door prohibition.”
Jack Campbell, President of the Florida Prosecuting Attorneys Association, spoke in support of the bill, particularly the increase in penalties.
“We’ve been addressing these issues and the violent crime that was discussed by the sponsor, “Campbell said. “Prosecutors recognize that we need to make this a felony.”
Campbell pointed out that current law doesn’t allow prosecutors to go after the organizations behind illegal gambling houses.
“There’s a tremendous amount of money that’s moving out,” Campbell said. “Right now, with the interventions that we can do, we’re only able to arrest the people that are on scene, we need to be able to do search warrants to follow the money, to find out what underlying organizations are behind it. So, on behalf of state prosecutors, we’re in support of this.”
Acting Executive Director of the Florida Gaming Control Commission Ross Marshman, supported the bill and thanked Simon, Bradley and Gruters for addressing the issue.
“I would like to thank Senator Simon for carrying this bill and addressing this serious issue,” Marshman said.
“I would also like to thank Chair Bradley, for providing an amendment that would provide additional clarity, that is something the Commission wants to give to any stakeholder that is concerned about whether or not their machines would run afoul of these laws. We also appreciate Sen. Gruters with your amendment, bringing up the issue of fantasy sports and making sure that the integrity of the Commission as a regulator, is beyond reproach.”
The bill will now go to the Agriculture, Environment, and General Government Appropriations Committee.
