Florida Residents Push for Slot Arcade Regulation

Some Florida residents are complaining about the state’s crackdown on illegal slot arcades. An advocacy group has even popped up to push for regulation of the industry. However, these folks shouldn’t hold their breath, as the chance of anything changing is infinitesimally small.

The advocacy group is called At Stake Florida. It created social media landing pages on June 21. The group’s stated mission:

We believe Florida residents should have the right to enjoy friends and family at local arcades through small business. Our goal is to unite supporters, gather petition signatures, and advocate for fair laws.

The state figures to be less than receptive to this idea.

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Florida Has Been Aggressive Against Illegal Slot Arcades

Florida has been in the midst of a sustained crackdown aimed at stamping out illegal slot arcades. Earlier this year, a coordinated sweep in Manatee County saw the state confiscate 265 machines and more than $120,000 in cash. Another bust saw authorities round up more than 500 machines and $200,000 across 40 establishments. That one spanned four counties: Brevard, Duval, Flagler, and Volusia.

The common thread is that illegal slot arcades are coming under increased scrutiny in the Sunshine State. Attorney General James Uthmeier promised a crackdown against illegal gambling this year, and he’s delivering.

The illegal business model typically follows a similar pattern. Someone gets hold of slot machines and rents or buys a small-business space, often in a strip mall. They fill the space with the slot machines, which bring in locally focused business. The operation rakes in money unchecked for a while, until someone reports it or law enforcement takes note. A bust follows, and the business shuts down.

Sometimes, the perpetrators simply move on to a new location, operating as a sort of continuous pop-up in an ongoing game of whack-a-mole. Since the illegal slot arcades can be highly lucrative, even being in business for just a few weeks or months can turn a hefty profit.

Some Locals Unhappy With Florida Slot Arcade Busts

According to local reporting from WINK in Collier County (South Florida, on the Gulf side), some community members are unhappy with the busts. Customers frequenting the arcades, “most of them retirees,” are framing the crackdown as the state unfairly targeting small businesses and tight-knit communities that have bonded over shared time in the arcades.

“I’ve heard that they can’t be regulated, and 100% I do not believe that that’s true,” said Gwenn Rios, who organized At Stake Florida.

Uthmeier, for his part, characterized the illegal slot arcades as a vehicle for organized crime. He said they sometimes connect to more dangerous operations such as human trafficking and drug empires.

A representative from the Florida Gaming Control Commission also pointed out that unregulated arcades have no player protections, such as return-to-player minimums. He said the unregulated slots could “put it at a 10% payout” because there’s no check in place to stop it.

Why Florida Won’t Go the Illinois Route and Regulate Video Gaming Terminals

WINK’s reporting floated Illinois as a state after which Florida could model a framework of out-of-casino slot regulation. Illinois has almost 50,000 video gaming terminals (VGTs), which brought in more than $1 billion in tax revenue last year.

VGTs are slot-like games located outside of casinos, generally at bars, restaurants, or truck stops. They come with their own issues and are sparking fiery debate in Chicago, but they have an undeniable appeal.

Florida has a population almost twice as large as that of Illinois, and its retiree-heavy population makes it an attractive theoretical market for VGTs. But at the end of the day, there’s a simple reason that this discussion is all academic.

Gambling in Florida revolves mostly around the state’s compact with the Seminole Tribe. The latest agreement, from 2021, gives the Tribe exclusivity to offer most forms of Class III gaming (slots, table games, craps, sports betting). There are a few “racinos” that are grandfathered in with some slots, and cardrooms offer poker and a few other games, but the Seminoles control the vast majority of retail and online gambling in Florida.

Having secured exclusivity, the Seminoles have no reason whatsoever to be receptive to the idea of VGTs or slot arcades. And they have considerable political and financial pull. Uthmeier’s quotes from earlier this year were telling.

“We stand by the Compact with the Seminole Tribe,” Uthmeier said when discussing the crackdown against slot arcades.

Florida’s retirees can pine for VGT framework all they want, but it’s likely a waste of effort. Expect Florida’s Hard Rock casino properties to continue dominating Florida gambling for the near future, while the whack-a-mole enforcement continues.